Idyllic school – The Idyllists Mon, 03 Oct 2022 18:40:06 +0000 en-US hourly 1 Idyllic school – The Idyllists 32 32 How Access to Earned Wages Beats Payday Loans, Payday Advances and BNPL – Hands Down Mon, 03 Oct 2022 18:40:06 +0000

Imagine that your refrigerator breaks down and you have no savings. You need a new, stat. In some cases, you may need to consider using Buy Now Pay Later or even a payday loan. But that could land you in even more conflict with high interest charges or missed payments.

Instead, you may be able to use your own money to pay for this unexpected cost, by access your own earned salary.

It’s now a reality with the Wagestream app, which gives employees instant access to up to 50% of their earned pay at any point in the payroll cycle, so they can cover any emergencies or unforeseen costs. without having to borrow and pay interest or late fees. It’s all about flexibility.

Here’s a quick breakdown of the difference between Payday Loans, BNPL, Payday Advances, and Earned Salary Access.

A non-solution: personal loans

Payday loans and their exorbitant fees should always be an absolute last choice.

On a $2,000 payday loan, the total repayments will be around $3,360 according to Moneysmart. That’s a whopping $1,360 in interest and fees, even assuming the loan is repaid on time.

These huge repayments consist of set-up fees of up to 20% of the amount borrowed and monthly service fees of up to 4% of the amount borrowed. The lender isn’t even required to disclose these fees to borrowers as an annualized interest rate, making it incredibly difficult to compare products or figure out how much you’re being ripped off.

Payday loans sent hundreds of thousands of Australians spiraling into debt as they struggled to repay them, with 15% of borrowers having to borrow again to repay their first loan, according to Stop the Debt Trap Alliance.

Defer the problem: BNPL

Then there’s BNPL, which often encourages overspending and doesn’t really solve employees’ financial difficulties. ASIC’s research found that one in five people using BNPL incur late fees that range from $5 to $15 and can be much higher for larger purchases. These can add up and become a significant problem when people are managing multiple BNPL purchases.

Wolf in sheep’s clothing: pay an advance

A payday advance is a short-term loan that typically lets you borrow up to 25% of your previous paycheck for a fee.

It is sometimes confused with access to earned wages, but the two products are very different when it comes to helping people avoid debt and boost their financial well-being.

Pay advance providers typically charge 5% per withdrawal, which means if someone accesses $200, they will pay $10 in fees. So if someone needs to access money once a month, that equates to an effective annual interest rate of 60%, and if they access money fortnightly, the effective annual interest increases to 130%.

Importantly, and unlike access to earned wages, payday advance providers do not have a relationship with employers. This means they are unable to verify how much someone earns, when they worked, and what their employment status is. This can lead to all sorts of inaccuracies and complications, especially for shift workers.

True financial stability and well-being: access to earned wages

Compare these options to Earned Salary Access, which provides the ability to access money that has actually been earned, but has not yet been paid.

Earned pay access providers like Wagestream offer their products to employees through employers and know how much someone has earned because their app is connected to an employer’s payroll and time and attendance systems. For casual and shift workers on variable incomes, this is very important, as it removes any uncertainty.

And to add a little icing on the cake, many employers choose to offer this feature as a personal benefit to help support employees’ financial well-being. As a result, employers often subsidize part or even all of the cost on behalf of the employee, reducing or eliminating the cost to employees.

The advantage for employers? Providers like Wagestream have been proven to improve employee engagement, attraction, retention and well-being.

But more importantly, Wagestream addresses the underlying issues that can negatively impact financial well-being by also providing tools to help employees manage their money and improve their financial health by removing some of the barriers behaviors that can hold people back.

Tools include the ability to track real-time income, save directly on paychecks, get personalized financial coaching (live in-app via chat), and practical tips and tricks to help people to get the most out of their salary.

‍So if you need that new refrigerator, you know what to do. Do yourself a favor and avoid the temptation of the payday loan / BNPL / payday advance and ask your employer – where is my earned salary access option?

This article was developed in conjunction with Wagestream, a Stockhead advertiser at the time of publication.

This article does not constitute advice on financial products. You should consider obtaining independent advice before making any financial decisions.

BBB warns people against payday loan scammers Tue, 27 Sep 2022 18:18:00 +0000

DOTHAN, Ala. (WTVY) – The COVID-19 pandemic, job loss and inflation have forced many people to turn to payday loans and loans when in a rush to make ends meet. But, sometimes it comes with scams and predatory lending.

The Better Business Bureau recently conducted a study on this, and found that more and more people are turning to these options to get by, and they are warning consumers about scammers.

“What’s happened over the past two years has only added fuel to this fire,” said Alex Derencz, BBB Serving Central & South Alabama communications manager. “Again, a lot of people found themselves in difficult situations.”

Derencz said each of these factors puts people in a financial bind financially looking to get a payday loan for a short-term fix.

“One of the findings was that many people take these payday loans and fall into their ‘debt trap,'” Derencz said.

Payday loans aren’t new, and Derencz said they’re not always a quick fix. He said it was crucial that people understood the loan numbers to avoid ending up in worse financial shape than when they started.

“Let’s say you needed to pull out $300 to cover your rent, well, two weeks later, you’re still not able to pay, more money is going to be in tact, more interest is going to be in trouble. tact, and you know at the end of that month $300 is going to be way over $400,” Derencz said. “So you can fall into a deeper hole than when you started.”

Another thing to watch out for: scams. The payday loan market offers legitimate options, but there are also scammers.

“Scammers, one of the things they take advantage of is that they thrive when needed,” Derencz said. “Whether there is a certain product that people need or people just need them in general. One of the things that this study found is that they prey on the insecurity of individuals, and often times people go to Google and search for these types of loans, and come up against bogus websites or just to bogus organizations.

Derencz suggests, when you’re in a hurry, researching nonprofits, asking friends and family for help or advice, or contacting a credit union. Overall, he said it’s important to do your due diligence and see what routes are available to get down.

“It can be scary, you know, saying you’re short on rent, saying you’re short on your utility bill for the month,” Derencz said. “I mean it’s a very scary thing, and the natural reaction is to go ahead and hit that panic button. But you have to take a deep breath and look at all the options available to you. you.

He also advises to be wary of unknown callers and emails. He said to take a look at what comes after the “@” symbols; legitimate payday loan companies will not send information from a Gmail or Yahoo account. Derencz suggests going to a trusted place to get a payday loan if you decide to do so.

Another important tip he shared: read all terms and conditions before signing on the dotted line.

Click here to see the full study.

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Existing home sales in the United States fall for the seventh consecutive month in August and the Fed is about to inflict “a little pain” with a 75 basis point rate hike – here’s how to prepare your portfolio and your wallet Wed, 21 Sep 2022 21:50:00 +0000

By Emma Ockerman

Wednesday’s best personal finance stories

Hi, MarketWatchers. Don’t miss these top stories.

Brace yourself: the Fed is about to inflict “some pain” with a 75 basis point rate hike. Here’s how to prepare your wallet and wallet.

This is the Federal Reserve’s third 75 basis point rate hike this year. Read more

Existing home sales in the United States fall for the seventh consecutive month in August

Sales of existing homes fell 0.4% to 4.8 million in August, the National Association of Realtors said. Read more

Halfway through trial period, companies say they are happy with four-day working week, survey finds

Halfway through a six-month trial in the UK, companies that let their employees work four days a week say they are happy with the results. Read more

Mortgage applications rise for first time in six weeks, despite rates hitting 6.25%, signaling ‘volatility’ in property market

The average rate for a 30-year mortgage is 6.25%. Still, refinances and purchases have increased over the past week, the Mortgage Bankers Association said. Read more

How do cash advance apps work and are they better than payday loans?

Neither is an ideal first choice for borrowing money quickly, but knowing their differences can help you save money and avoid hurting your finances. Read more

Thinking of an EV? Here’s your guide to buying an electric car.

How do I buy an EV? What about maintenance, incentives and cargo space? Here’s what to look for when buying an electric car. Read more

Three common travel disasters and what to do about them

Here are three common issues with airlines, the types of travel insurance you need to cover expenses, and how you could get free travel insurance.

“She never explained anything”: I am an elderly person and I lost $100,000 on the stock market this year. Can I sue my financial advisor?

“I informed my financial adviser that I was going to retire months before all of this happened.” Read more

-Emma Ockerman


(END) Dow Jones Newswire

09-21-22 1750ET

Copyright (c) 2022 Dow Jones & Company, Inc.

Predatory payday loan companies thrive amid unequal laws and stolen data | Local News Tue, 20 Sep 2022 19:46:57 +0000

Special for the News Herald

ASHEVILLE — As consumers lost their jobs and struggled to make ends meet during the COVID-19 pandemic, many turned to payday loans and other short-term solutions. This has not only allowed predatory lenders to thrive – many borrowers still face exorbitant interest rates and opaque fees – but has also created a fertile environment for scam artists, according to a new in-depth study from the Better Business Bureau. .

Payday loan laws are managed from state to state among the 32 states in which they are available, and a complex web of regulations makes the impact of the industry in the United States difficult to track. The BBB study, however, finds a common thread in the triple-digit interest rates that many of these loans carry – camouflaged by interest compounded weekly or monthly, rather than annually, as well as significant rollover fees.

From 2019 to July 2022, BBB received nearly 3,000 customer complaints about payday loan companies, with a disputed dollar amount of nearly $3 million. In addition, over 117,000 complaints have been filed against debt collection companies at BBB.

People also read…

Complainants often said they felt ill-informed about the terms of their loans. Many fall into what consumer advocates call a “debt trap” of racking up interest and fees that can force customers to pay double the amount originally borrowed. A St. Louis, Missouri woman recently told BBB that over the course of her $300 loan, she paid over $1,200 and still owed an additional $1,500.

The scammers haven’t missed an opportunity to take advantage of consumers either, with BBB Scam Tracker receiving over 7,000 reports of loan and debt collection scams representing around $4.1 million in losses.

Posing as payday loan companies and debt collectors, scammers use stolen information to trick consumers into handing over banking information and cash. In one case, BBB discovered that hackers had stolen and released detailed personal and financial data for more than 200,000 consumers. News reports indicate that this is not an isolated incident.

Just two weeks ago, a North Carolina man received a voicemail from a company called Document Delivery Services informing him of an ongoing civil complaint and that it was imperative that he contact the issuing company. . The phone number the scammer called from was a different phone number than the one left in voicemail. When the man called both numbers back, they were answered by the same man who said he worked for a company called Parker & Schultz. The scammer then recited much of that consumer’s personal information, but when the scammer mentioned having a debt on a credit card that the consumer never owned, he knew it was ‘a scam. Eventually the scammer became agitated and said it would be dealt with in court and hung up. Luckily, this consumer was smart enough to realize it was a scam and suffered no monetary loss.

Regulators at the federal level have passed tougher laws to combat predatory lending, but those regulations have been rolled back in recent years, leaving states to set their own rules on interest rate caps and other aspects of lending. on salary. More than a dozen states introduced legislation last year to regulate payday loans, but the landscape of legally operating payday lenders remains inconsistent across states. Currently, payday loans are not allowed in 18 states, according to Pew Charitable Trust.

In addition, the Military Loans Act sets a rate of 36% on certain payday loans. When it comes to fraudulent behavior, law enforcement is limited in what they can do to prosecute payday loan scams. Some legal payday lenders have attempted to prevent scams by educating consumers about the ways in which they will or will not contact borrowers.

The BBB study advises consumers to thoroughly research all of their borrowing options — as well as the terms and conditions of a payday loan — before signing anything to take out a short-term loan.

Cash Advance Apps vs Payday Loans: Which is Better? Sun, 18 Sep 2022 16:00:43 +0000

(NerdWallet) – If you were asked to imagine a payday lender, you might think of a storefront in a strip mall with green dollar signs and neon slogans like “everyday payday “. You probably wouldn’t imagine a mobile app that advertises on TikTok and sports a colorful logo.

But cash advance apps like Earnin and Dave provide advances with the same borrowing and repayment structure as payday lenders, and consumer advocates say they carry similar risks. Both are quick, no-credit-check options for closing an income gap or easing the pressure of inflation.

Neither is an ideal first choice for borrowing money quickly, but knowing their differences can help you save money and avoid hurting your finances.

Cash advance apps work like payday loans

Like most payday loans, a cash advance or paycheck app lets you borrow money without a credit check. You are also required to repay the advance, plus any fees you have agreed, on your next payday.

One payment cycle is usually not enough for borrowers to repay a payday loan, so many people fall into the habit of getting another loan to pay off the previous one, says Alex Horowitz, senior director of The Pew Charitable Trusts.

App users may find themselves in a similar cycle. A 2021 study by the Financial Health Network found that more than 70% of app users get back-to-back advances. The study doesn’t say why users re-borrow, but Horowitz says the behavior is particularly similar to payday loans.

“Direct-to-consumer payday advances share DNA with payday loans,” he says. “They’re structured the same, they have repeat borrowings, and they’re scheduled based on the borrower’s payday, which gives the lender strong collectability.”

Apps can offer more flexibility

Payday lenders and payday advance apps collect repayment directly from your bank account. If your account balance is too low when funds are withdrawn, you could incur overdraft fees, says Yasmin Farahi, senior policy adviser at the Center for Responsible Lending.

An application may try to avoid overcharging your account. Mia Alexander, Vice President of Customer Success at Dave, says the app reviews users’ bank accounts before withdrawing the refund. If the refund puts the balance close to zero or negative, the app may not withdraw the funds, she says.

However, apps typically include language in their user agreements that while they try not to overcharge your account, they aren’t liable if they do.

In states where payday loans are allowed, a payday lender is unlikely to offer a free, unsolicited payment extension, as some apps claim. Some states require payday lenders to offer extended payment plans at no cost to troubled borrowers, but a 2021 report from the Consumer Financial Protection Bureau says some lenders are misrepresenting plans or not disclosing them.

Unlike payday lenders, the apps don’t make collection calls. If a user revokes access to their bank account to avoid a refund, the app will not attempt to collect the funds. The user simply cannot get another advance until they repay the previous one.

Payday loans cost more

Payday loans tend to have high mandatory fees, unlike apps. Instead, they charge a small fee that users can accept throughout the borrowing process. These fees can add up, but they are usually lower than those charged by payday lenders.

For example, an app might charge a monthly subscription fee or a fee for instant access to funds. Most cash advance apps also ask for a tip for service.

The charges on a $375 payday loan are most often about $55 over a two-week period, Horowitz says. Since the cash advance application fee is mostly optional, you can easily keep the cost below $10.

Earnin user Sharay Jefferson says she’s used payday loans in the past, but switched to a cash advance app because it’s a cheaper way to cover bills and unexpected expenses.

“If you get a $200 payday loan, you might be paying something back three times over,” she says. “With Earnin, I’m going to have to pay that $200 back, plus whatever I decide to give them. It’s much cheaper. »

Technically, apps are not lenders

Regulators like the CFPB have not classified payday advance apps as lenders, despite their similarities to payday loans.

Earnin CEO and Founder Ram Palaniappan says the app is more like a payroll service or an ATM because it makes it easier to access your own funds. Earnin asks users to upload a timesheet showing they worked enough hours to earn the cash advance amount. Other apps scan a user’s bank account for income and expenses to determine if they qualify for an advance.

Farahi says applications should be treated like creditors, meaning they would follow the Truth in Lending Act, which requires creditors to disclose an annual percentage rate. An APR allows consumers to compare costs between financing options. For example, users can compare the APR of a cash advance app to that of a credit card and choose the most affordable.

“People still need to know what the real cost of credit is and to be able to assess it and really compare that cost with other options,” she says.

Applications should also comply with applicable state lending laws. Currently, 18 states and Washington, DC, have maximum interest rate caps that could limit application fees, she says.

Cash Advance App vs Payday Loan: Which is Better?

If you’re in dire need of cash, you may have better alternatives than payday loans and advanced apps, Farahi says.

Local charities and nonprofits can provide basic food and clothing needs. A family or friend could lend you money at no additional cost. If you have a few hours to spare, a side gig could generate as much money as a typical payday loan or cash advance application.

If you have the choice between an app and a payday loan, the app is probably the best option because:

  • It is less expensive.
  • It may not trigger overdraft charges.
  • If you don’t pay it back, the app won’t send you to collections.

A cash advance from an app is unlikely to leave you in a better financial position, Farahi says. But it may be a little less likely than a payday loan to make things worse for you.

Tired of overdraft fees? Try postal banking Sat, 17 Sep 2022 05:34:06 +0000

Many of us have been hit with overdraft fees on our checking account before, and while it was nice to have the protection, the $33 fee – the average overdraft fee these days – definitely stung. .

What if I told you that overdraft fees are an intentional failure move by a wealthy few in an increasingly rigged game against the rest of us?

Banks have collected over $460 billion in overdraft fees since 2010. In the last three months of 2020 alone, JPMorgan Chase, Wells Fargo and Bank of America collectively collected over $300 million in overdraft fees. One bank CEO – Bill Cooper of Minnesota-based TCF National Bank, who was sued by the federal government for “cheating consumers into expensive overdraft services” – even named his yacht “Overdraft”.

It’s no exaggeration to call overdraft fees predatory. The Consumer Finance Protection Bureau found that less than 9% of consumer accounts pay 10 or more overdrafts per year. This means that a small percentage of accounts – likely low-income consumers – account for almost 80% of all overdraft income.

What if I also told you that it doesn’t have to be that way — that in over 100 other countries people don’t have to worry about overdraft fees? This is because these countries have publicly funded postal banking services. People in countries as diverse as South Africa and Kazakhstan can open an account, cash a cheque, get cash or deposit in low-cost ATMs, transfer money, pay bills and more so without a predatory bank siphoning off profits from their executives’ yachts. .

That’s why the US Postal Service needs to expand its small postal banking pilot program, launched last year, even though it hasn’t been as popular as expected. The agency only offered banking services at four locations and did little to market the program.

To be effective, the program must be significantly expanded to meet demand. The number of “unbanked” Americans is staggering. One in four U.S. census tracts, home to 21 million people, has no bank within its borders. More than 7 million people do not have a bank account.

It harms everyone. Without a bank account, it can be difficult to participate in the economy. With the more commonly used direct deposit payroll, it can be difficult to find a job, buy a car or pay rent. Instead, low-income people rely on predatory payday loans. Payday loans come with an absurd interest rate – often starting at 300 percentage points, which can double over time.

Like overdraft fees, payday loans are meant to be a “short-term” solution. But they don’t actually shake that way. Some 76% of total industry volume comes from borrowers reborrowing before their next paycheck.

The banks and the elected officials who carry their water qualify the postal bank as “radical”. Still, the Postal Service offered banking services from 1911 to 1967, and restoring the service could generate $9 billion in much-needed revenue for the agency each year. One of the reasons the Postal Bank was phased out was that it offered relatively high interest rates, which competed with “more traditional banking institutions”.

Worldwide, 1.5 billion people receive financial services at their local post office. There is no reason for the United States not to follow. A recent poll shows a strong majority of Democrats — and even Republicans — support postal banking. The only thing standing in our way is the billions of lobbying dollars Wall Street spends every election cycle to protect its predatory profits.

Devin Thomas O’Shea is a writer living in St. Louis. This column was produced by Progressive Perspectives, which is run by The Progressive magazine and distributed by Tribune News Service.

Michigan spent $2.5 million to be a rocket hub. Critics say it only produced hype Wed, 14 Sep 2022 20:45:55 +0000

“It’s truly remarkable that someone is considering putting a heavy industrial facility [like a launch pad] on the coastline of the largest body of fresh water in the world,” said Dennis Ferraro, who lives about 3 miles from the selected site and leads the opposition group Citizens for a Safe & Clean Lake Superior.

“It’s just a horrible idea. Ecologically, it is a disaster.

In Chippewa County, officials were thrilled after the Michigan Launch Initiative selected the base as its command site in January 2021. However, Brown’s group has yet to file the necessary permits with the Federal Aviation Administration to the project.

“I think everyone turned around, like we did, and said, ‘What have we won?

“There is no structure there. There is no money for that.

At Oscoda, airport officials are restless and awaiting answers after Brown’s group suggested the former Air Force base as a site in 2020.

Airport board member Kevin Boyat said he still remains hopeful, but officials can’t get answers from Brown.

The board sent a letter months ago, he said, giving Brown 45 days to respond. He heard nothing back, Boyat said.

“It’s like ordering a new car and waiting six years [for it],” he said. “When you ordered it, you were excited.”

“It took so long and we can’t get any information from Gavin,” Boyat said.

Brown said he has complied with all state requests for information and remains confident about the state’s space outlook. He also played down environmental concerns, saying any vertical launch at Marquette would use “green energy,” some of which has yet to be developed.

But he also said no final decision has been made on when to apply for a spaceport license from the Federal Aviation Administration. This will come after a final decision as to whether it makes economic sense to proceed.

“It will start when it makes sense to start,” said Brown, who is also executive director of the Michigan Aerospace Manufacturers Association, which is an integral part of the space project.

Like all non-profit organizations, it is required to make tax returns public, upon request. A Bridge search of publicly available records shows that only his 2010, 2011 and 2019 are currently available.

Bridge asked Brown and his accountant for copies of other tax returns on several occasions. Brown said he would provide them, including again in a midday email on Wednesday, September 14. At the time of publication, they were not provided by the publication.

Existing tax records show that 88% of his total revenue of $1.5 million in 2019 came from state grants.

“There was something wrong”

The turmoil comes amid what is otherwise an exciting time for space exploration.

With NASA poised to return to the moon and the space industry approaching $500 billion last year, Michigan is entering the race to become a hub for low Earth orbit launches.

It has an inherent advantage due to its location, more than halfway up the North Pole from the equator, which allows launches into “polar” orbits coveted by some commercial satellite companies.

Lawmakers funded the space effort through the belated approval of a budget that provided money for former Gov. Snyder’s pet projects in the final days of his administration.

Governor Gretchen Whitmer initially refused to honor funding for the space effort, citing a lack of details.

But after lawmakers agreed to the changes, his administration funded the project, and the quasi-government Michigan Economic Development Corp. oversaw the grant to “assess the feasibility of a low orbit launch site in Michigan”.

The Michigan Launch Initiative was scheduled to complete work in January 2021 but received two extensions. At the same time, its grant increased from $2 million to nearly $2.5 million.

The grant surprised Kirk Profit, a former lawmaker turned lobbyist.

He said the funds were raised shortly after Brown requested a $2 million investment from Kalitta Air to fly rockets into the stratosphere in its cargo planes at Willow Run and Oscoda airports.

Profit was Kalitta Air’s lobbyist at the time and said he and the company could find little on Brown’s background.

“We checked it. We finally shelved it,” Profit said recently. “There was something wrong.”

Conflicting studies

Michigan is forging ahead, though some critics say the state is lagging far behind others in the race to build infrastructure for the booming space industry.

One of the primary sources of criticism from critics is a report commissioned by Brown’s group.

The IQM Research Institute article noted that since Brown floated the idea of ​​the Michigan launches, the economics of the commercial space industry have changed dramatically.

The report, written by former Air Force Brigadier General Michael Dudzik, who commanded all of the branch’s space forces, said the cost of placing satellites in space was dropping dramatically from $7,000 a pound to less than $1,000. And a few big players – including Elon Musk’s SpaceX – dominated the market.

More than a dozen spaceports in 10 states have received FAA licenses in recent years, and most have not staged a single launch.

In its 2021 report, IQM reported that there had been just 16 polar-orbiting launches — like the ones Michigan could host — at three U.S. spaceports in the previous three years.

In fact, with other locations dominating the market, IQM’s report concluded that so few new businesses would surround the launch sites that even if there was one launch per week, “annual revenue generated… would have the same revenue impact in the state equal to the annual revenue of two additional fast food chains.

“He was just selling the concept, but he was separated from the fundamental facts,” Dudzik told Bridge.

Brown criticized the finding during an interview with Bridge, saying it unfairly characterized the value of the food and beverage industry.

Dudzik’s report went “beyond the scope” of what it was asked to investigate, he added.

“No business case has been made,” he said.

Brown’s nonprofit’s website, however, includes a study that explores the “commercial dosage” for launches.

The four-page study from August 2021 concludes that the sites could attract 30 aerospace companies and deliver $13.2 billion in economic impact over the next 10 years, a “potential return of 40 times the investment in terms of economic impact for the State of Michigan”.

The reasons for optimism

Even with the turmoil, many remain optimistic that Michigan could capitalize on the space industry.

The IQM report concluded that Michigan could still benefit without committing tens or hundreds of millions of dollars to launch facilities, as has happened in other states, including New Mexico, Colorado and Georgia.

Michigan has great advantages, with or without launch sites, said Greg Autry, director of the Thunderbird Initiative for Space Leadership, Policy and Business at Arizona State University.

He said Michigan’s manufacturing heritage makes it uniquely positioned to build rockets and their components. But focusing on launch sites before identifying a rocket builder is “kind of putting the chicken before the egg,” he added.

Michigan’s space efforts are “half-hearted,” Autry said, because they lack vigorous collaboration between government and the private sector.

The Colorado Space Coalition includes state government leaders as well as representatives from academia and the private sector. Although its launch site was not used, the coalition is actively working to develop the state’s aerospace industry.

If Michigan adopted Colorado’s model and brought everyone to the table, “you’d move Colorado in the blink of an eye,” Autry said.

Government of Canada consultation on reducing the criminal interest rate Fri, 09 Sep 2022 19:13:47 +0000

Authors): Joyce M. Bernasek, Dominic Duchesne

September 9, 2022

Last August, the Government of Canada launched its Advance Consultation Paper (the Consultation Paper) to solicit feedback from stakeholders and vulnerable members of the public on the criminal interest rate and availability of high-cost installment loans often offered by other lenders.

Although the Government of Canada’s policy objective has not yet resulted in a new criminal interest rate, a reduction in the criminal interest rate could have market implications for lenders and borrowers.

Interest rates in Canada must not exceed 60% – section 347 of the Criminal Code

When first introduced in 1980, the criminal interest rate was established to deter loan sharking and other predatory lending practices. Section 347 of the Criminal Code (the Code) makes it an offense to: (1) enter into an agreement or arrangement to receive interest at a rate greater than 60% of the total value of the credit advanced; and (2) actually receive interest in excess of 60% of the total value of the credit advanced. It should be noted that the Code broadly defines the concept of “interest” to include costs, fines, penalties or commissions. Overdraft fees and discharge fees also fall within the scope of what would be considered “interest”. Although the consultation paper discusses high-cost installment loans, it is important to note that some payday loans are exempt from the Code.

High Cost Installment Loans

The consultation paper targets alternative lenders in their offering of what are universally considered “high cost loans” or “high interest” loans. Alternative lenders provide loans quickly with less stringent requirements and offer longer-term, higher-cost installment loans. The consultation document reveals that these installment loans have interest rates of up to 47% per year. With additional fees and charges included, and with frequent compounding interest, many of these installment loans equate to having an overall annual interest rate just below or nearly equal to the criminal interest rate of 60%.

A rate fixed at 60% for 40 years

The Consultation Document undertakes to better understand the impact that such a rate cut could have on the market and on the availability of financial products as we know them. As the consultation paper points out, the criminal interest rate is a fixed rate not linked to market rates. When the criminal interest rate was introduced, the Bank of Canada’s overnight rate was 21%. At that time, the gap between the overnight rate and the criminal rate was 39%. Today, the gap is close to 60%. Thus, the Government of Canada wishes to know whether the interest rate pricing set by other high-cost lenders reflects the actual credit risk of the borrower, or whether the interest rates of these high-cost financial products are fixed simply respect the ceiling authorized by the penal interest rate.

Considerations for Lenders

Responses to the consultation paper are expected by October 7, 2022. Any changes to the criminal interest rate would apply to all credit products in Canada and affect a wide range of borrowing products on the market. If you or your business need help determining the potential impact of a lower criminal interest rate, please do not hesitate to contact the authors of this article.

Payday Loan Scams Consumers Should Be Aware Of: Fake Loans, Stolen Information, Fraud Sun, 04 Sep 2022 20:49:06 +0000

Payday loans in the US are a hugely predatory industry, and now the landscape is getting worse as scammers pose as popular lenders try to scam people.

A new Better Business Bureau report on these scammers has shed light on the story of Shirleywho “received a call from a woman who said her name was”Lawrence Green.Lauren told Shirley that she “qualified for a $5,000 loan from the West Point lenders” but that shehad to do was pay $535 as a feebefore the money is deposited into their account. Then Green again said that “another $535 was needed because his credit wasn’t good enough.” However, once Shirley handed over the $1,070, Lauren disappeared with Shirley’s money, and when she went to search, she discovered that the company was fake and that her information had been stolen.

To be fowarding something…

Many scammers use names close to major payday lenders to work on the notoriety of some of these companies. The BBB has warned that fraudsters posing as debt collectors can also use the same tactics to “make their threats more serious”.

How many payday lender scams have been reported this year?

While the total number of scam attempts reported to the BBB has gone down, the amount that has been taken from those defrauded has increased over the years:

  • 2019 – Reports: 1,151 | Losses: $856
  • 2020 – Reports: 741 | Losses: $900
  • 2021 – Reports: 760 | Losses: $765
  • 2022 – Reports: 403 | Losses: $1,000.

These figures should be taken with caution since the BBB estimates that only about ten percent of fraud cases of this nature are reported to the organization – meaning that the extent of the problem is much bigger than these numbers represent.

The federal government should take notice of people’s willingness to engage in the scam, as many have reported falling for the trap because “they were already in debt due to payday loans.” After being scammed, some victims also reported: “months behind on rents and other bills, due to the financial consequences of these scams.”

A general warning for those interested in a payday loan

Payday lenders are one of the least regulated aspects of financial services. The BBB reported that their scam trackers show “that despite efforts across the country to limit the power of payday loan companies, many Americans are still trappedin debt cycles after taking out any of these loans. These agencies use complicated formulas to hide high interest rates applied to loans of up to more than four hundred percent. BBB researchers shared the story of Wanda, a senior in Georgia who took out a $1,000 payday loan to build her credit.

Buried behind all the fees and paperwork, his real interest rate was almost 450%. She quickly regretted the decisionreads the report, noting that these companies often take advantage of older people. “They bill you every two weeks, and that’s about $400.00 to $600.00 per month to repay such a small amountt,” Wanda said, addressing the report’s authors.

Top 5 Best Payday Loans No Credit Check Guaranteed Same Day Approval 2022 Sat, 03 Sep 2022 10:44:36 +0000

For Americans with less than stellar credit ratings, finding a loan online in the midst of a financial setback can seem impossible. You can find a seemingly “easy” solution by researching payday loans without credit checks online. These loans are the unicorn of the financial world; everyone has heard of them, but they don’t really exist.

We investigated several alternatives to payday loans without an online credit check – our findings are below!

Payday Loans No Credit Check Online – Quick Overview

  1. Viva Payday Loans – Best Overall for Payday Loans No Credit Check Online Alternative
  2. Low credit financing – Ideal for small online payday loans No credit check alternative for borrowers with bad credit
  3. Big Buck Loans – Best For Online Payday Loans No Credit Check Instant Approval Alternative For Unemployed
  4. Heart Paydays – Ideal for same day online payday loan alternatives with no credit check
  5. Green dollar loans – Ideal for alternatives to online payday loans Instant approval without credit check

Best Loans No Credit Check Guaranteed Approval 2022

  • Viva Payday Loans – Best Overall for Payday Loans Online Alternatives No Credit Check

Viva Payday Loans claims the top spot in our editor’s pick for online payday loans with no credit check alternatives. Their application process for online alternatives for payday loans no credit check is quick and easy. It is also impressive that the platform offers loans ranging from $100 to $5,000 with 3 to 24 months of repayment. Interest, which can be a real pet peeve for borrowers, starts at 5.99% at Viva Payday Loans.

Eligibility Criteria for Payday Loan Alternatives No Online Credit Checks

  • Earn $1000 per month
  • Take an affordability assessment
  • 18 years + to apply

Benefits of Online Payday Loan Alternatives No Credit Check

  • Low FICO borrowers welcome
  • 100% online application
  • Flexible loan amounts

Disadvantages of Online Payday Loan Alternatives No Credit Check

Click here to apply for funds online today >>

  • Low Credit Financing – Best for Small Online Payday Loans No Credit Check Alternative for Borrowers with Bad Credit

Low Credit Finance is a provider of legit online payday loans no credit check alternative for bad credit. Although they do not offer payday loans without online credit checks due to regulatory compliance, they do have several alternative options up to $5,000 with interest ranging from 5.99% to 35.99% .

Eligibility Criteria For Payday Loans No Credit Check Online Alternatives

  • Income of $1,000 per month
  • Affordability assessment applies
  • Over 18 only

Benefits of Payday Loan Alternatives No Credit Check Online

  • Options for borrowers with bad credit
  • Flexible loan amounts
  • Flexible terms

Disadvantages of Payday Loan Alternatives No Online Credit Checks

Click here to apply for funds online today >>

  • Big Buck Loans – Best For Online Payday Loans No Credit Check Instant Approval Alternative For Unemployed

Big Buck Loans offers same-day online payday loan alternatives with no credit check for the self-employed, self-employed, and those with innovative ways to earn an income. Online Payday Loans No Credit Check Alternatives from $100 to $5,000 are available for those without a formal job.

Eligibility Requirements for Online Payday Loan Alternatives No Credit Check

  • Over 18 only
  • US bank account
  • Earn $250 per week

Benefits of Same Day Online Payday Loan Alternatives No Credit Check

  • Quick Approvals
  • Bad Credit Options
  • A minimum of administrative formalities

Disadvantages of Online Alternatives to Payday Loans No Credit Check

  • Expensive interest up to 35.99%.

Click here to apply for funds online today >>

Heart Paydays – Ideal for same day online payday loan alternatives with no credit check

For those who want quick cash, Heart Paydays stands out. Their online payday loan alternatives with no credit check range from $100 to $5,000 with up to 2 years to pay off. Interest starts at 5.99% and goes up to 35.99%. You’ll receive feedback in about two minutes (yes, that’s that fast!).

Eligibility Requirements For Legit Online Payday Loans No Credit Check Alternative

  • Income of $1,000 per month
  • at least 18 years old
  • US bank account

Benefits of Payday Loan Alternatives No Credit Check Online

  • Payments in 60 minutes
  • Bad borrowers are welcome
  • Flexible terms

Disadvantages of Payday Loan Alternatives No Online Credit Checks

Click here to apply for funds online today >>

  • Green Dollar Loans – Best for Online Payday Loan Alternatives Instant Approval with No Credit Checks

There’s no pace or nail-biting when applying for small online payday loan alternatives without credit checks with Green Dollar Loans. Application takes minutes and approval (or rejection) takes 2 minutes! Payments are processed within the hour. Loans range up to $5,000 with up to 2 years to pay off.

Eligibility Requirements for Online Payday Loan Alternatives Instant Approval No Credit Check

  • 18+ to apply
  • Earn $1,000 per month
  • Legal resident or citizens of the United States

Benefits of Online Payday Loan Alternatives No Credit Check

  • Payments in 60 minutes
  • Bad Credit Options
  • Simple app

Disadvantages of Online Payday Loan Alternatives No Credit Check

  • Interest can reach 35.99%.

Click here to apply for funds online today >>

What are payday loans without online credit checks and how do they work?

Payday loans without a credit check online are short-term loans given to borrowers without a credit check. Although this is the concept of a payday loan no credit check, they do not exist due to US lending regulations. Alternatives to payday loans without an online credit check follow a simple loan model where the borrower applies online, the loan is repaid plus interest.

How to Apply for Payday Loan Alternatives No Credit Check Online

Follow these simple steps:

Step 1: Choose your loan amount

Select loan amount from $100 to $5,000 and loan term from 3 to 24 months.

Step 2: Complete the application form

Follow the prompts to enter your data on the online form.

Step 3: Get a decision in less than two minutes

You’ll know if a lender can help you within two minutes of submitting your application.

Step 4: Get your loan

The lender will present a loan agreement which will need to be signed before the money can be repaid.

Features and Factors to Consider When Applying for Payday Loan Alternatives No Credit Check Online

Payday Loans No Credit Check Online Alternative Interest

Interest ranges from 5.99% to 35.99% – this amount is added to the total you borrow.

Amounts and Conditions Associated with Alternatives to Payday Loans No Online Credit Checks

Loan amounts start at $100 and go up to $5,000, with terms ranging from 3 to 24 months.

Reputable Lenders Offering Alternatives to Small Payday Loans No Online Credit Checks

Lending search organizations only match borrowers with reputable and transparent lenders.

How We Picked the Best Alternatives to Payday Loans No Credit Check Online

We searched for lenders offering:

  • 100% online application
  • Same day payments
  • Flexible terms
  • Interest not exceeding 35.99%


We rank Viva Payday Loans as our top pick for payday loan alternatives without online credit checks. Their service is free for borrowers and by using them you save time and money.


What supporting documents do unemployed people have to provide?

You must present your identity document, proof of address and your bank statements.

Can borrowers with low FICO scores get same day payday loans online?

Yes, loan research panel lenders offer payday loans to borrowers with bad credit, and they can repay the same day of approval.

Where can I get $255 payday loans online same day without credit check?

Viva Payday Loans offers great alternatives to $255 online same day payday loans with no credit check.

Disclaimer: The lending websites reviewed are correspondent lending services, not direct lenders. Therefore, they are not directly involved in the acceptance of your loan application. Applying for a loan with the websites does not guarantee acceptance of a loan. This article does not provide financial advice. Please seek the assistance of a financial advisor if you need financial assistance. Loans available only to US residents.