consumer finance protection bureau

Hundreds Defrauded in Debt Settlement Scheme

Posted on 05/7/2013 by |Money and Work | Comments

Bulletin Today | Money & SavingsMore than 1,000 people struggling with credit-card debt turned to a debt-settlement company for help. Instead of using the consumers’ $2.2 million in fees to pay their creditors, the company’s owner and employees purchased luxury car leases and other goods, according to a federal indictment unsealed in New York Tuesday. The criminal indictment, reported by USA Today, says Mission Settlement in New York, its owner Michael Levitis, and three employees were charged with using their customers’ fees to pay for …

Mulling a Payday Loan? How Does 322% APR Sound?

Posted on 04/24/2013 by |Money and Work | Comments

Bulletin Today | Money & SavingsIn this economic climate of relatively low interest rates, who pays 322 percent in annual interest for short-term loans? Consumers who repeatedly take on payday loans. That’s right. The average consumer who may be short on cash, and gets payday loans to bridge the gap until the next payday, winds up shelling out 322 percent interest or more on the money borrowed. Or put another way, it’s an average $15 interest on every $100 borrowed in a $350 loan over …