Hosting plans – Hibirgeur http://hibirgeur.com/ Fri, 01 Jul 2022 01:30:53 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://hibirgeur.com/wp-content/uploads/2021/10/icon-11-120x120.png Hosting plans – Hibirgeur http://hibirgeur.com/ 32 32 Florida payday lender to pay $39 million in SEC investment fraud lawsuit https://hibirgeur.com/florida-payday-lender-to-pay-39-million-in-sec-investment-fraud-lawsuit/ Fri, 01 Jul 2022 01:06:00 +0000 https://hibirgeur.com/florida-payday-lender-to-pay-39-million-in-sec-investment-fraud-lawsuit/ By Lauren Berg (June 30, 2022, 9:06 p.m. EDT) – A federal judge in Florida has issued a final judgment in favor of the United States Securities and Exchange Commission after a Miami payday loan company agreed to pay more than $39 million to resolve the claims. fraudulently raised $66 million from over 500 investors. […]]]>
By Lauren Berg (June 30, 2022, 9:06 p.m. EDT) – A federal judge in Florida has issued a final judgment in favor of the United States Securities and Exchange Commission after a Miami payday loan company agreed to pay more than $39 million to resolve the claims. fraudulently raised $66 million from over 500 investors.

U.S. District Judge Beth Bloom on Wednesday signed three judgments: two for Sky Group USA LLC and CEO Efrain Betancourt Jr. — who the SEC says misappropriated funds to fund a lavish lifestyle and perpetuate a scheme Ponzi – and one for a defendant relief under the control of Betancourt.

Sky Group and its CEO have admitted no wrongdoing,…

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Amigo: this fintech is ready https://hibirgeur.com/amigo-this-fintech-is-ready/ Sun, 26 Jun 2022 19:43:46 +0000 https://hibirgeur.com/amigo-this-fintech-is-ready/ Founded in 2005, Amigo Holdings PLC (LSE: AMGO, Financial) is a fintech specializing in guarantor loans. These are the types of loans given to someone with bad credit who can call on a trusted friend or family member to back it up. Amigo has secured 80% of the UK collateral loan market. The company went […]]]>

Founded in 2005, Amigo Holdings PLC (LSE: AMGO, Financial) is a fintech specializing in guarantor loans. These are the types of loans given to someone with bad credit who can call on a trusted friend or family member to back it up.

Amigo has secured 80% of the UK collateral loan market. The company went public in 2018 on the London Stock Exchange at a valuation of 1.3 billion pounds ($1.6 billion). However, in November 2020 the business model was halted by regulators over a number of concerns and the company faced bankruptcy.

As a result, the share price has fallen more than 98% since 2019. However, a high court approved its new business model in May, so it should be able to continue operations very soon (subject to the regulatory approval). The stock jumped 15% in the past 48 hours on the news.

Let’s dive into the story so far, looking at financials and valuation to see if this damn stock is about to rebound.

The bad – discontinued business model

Amigo is the UK’s largest guarantor loan company. The idea is to offer loans of up to 10,000 pounds ($12,300) to people who are excluded from the financial system and cannot borrow due to a bad credit history. They can do this by asking a friend or family member to guarantee the loan. Their loans are classified as “mid-cost” loans with an annual percentage rate of 49.9% and no additional fees. That’s significantly higher than traditional banks, but cheaper than payday loans. However, in July 2020, Amigo received a series of complaints about the lack of accessibility controls and had to pay around £35m to fix them. Its activity was interrupted in November 2020 and the company was on the verge of bankruptcy.

The voucher – approval

In May, a high court approved the company’s new business model. As such, Amigo should be able to continue operations very soon if the Financial Conduct Authority also approves it.

Under the new scheme, Amigo’s total net new loans cannot exceed £35m and it must have at least £112m in the scheme. The idea is to make the new loans more user-friendly with interest-free annual payment holidays offered and methods for customers to lower monthly payments.

1540623344552976384.png

Source: Amigo presentation.

The villain – shareholder dilution

If the FCA approves the program, then the company will have to raise more money from investors. Amgo will need £15m raised from investors and £97m from its strong internal cash balance of £110m in unrestricted cash. By raising capital, the company will issue 19 new shares for every existing share, which will result in great dilution for existing shareholders. As a fallback, the company will end the business in bankruptcy.

Fragile finances

At the end of December 2021, the company announced a strong unrestricted cash position of over £110 million excluding debt. Amigo has a net loan book of £180.7m, down 56.2% year-on-year. The number of its customers in arrears (struggling to repay their loans) increased its impairment coverage ratio to 22.4% from 18% in the third quarter of 2021. It has a large provision for claims of 347.5 million pounds. Amigo’s pre-tax profit was £1.6 million, compared to a huge loss of £81.3 million in the third quarter. Positive profitability is a good sign because the company is ruthlessly cutting costs.

1540622436213530624.png

Evaluation

In terms of valuation, the stock has a market cap of just £25m, making it truly a small cap stock. However, the £110m of unrestricted net cash means it is in a strong cash position. If we exclude the £97m for the new regime, we are left with £13m, which means the company is currently trading at around twice its future cash position. But remember that this doesn’t take into account future dilution, which could skew the numbers even further.

The company is trading at a price-to-sales ratio of 0.21, which is well below historical levels of 6.

1540619065519841280.png

The GF value line indicates that the stock is slightly undervalued relative to historical multiples, past financial performance and future earnings projections.

1540620087340376064.png

Final Thoughts

Amigo is a battered and bloody fintech, which recently received a silver lining after the positive ruling. Its brand and in-house office team seem to have a fun, friendly “borrow from your Amigo” style, but the current situation is still shaky.

The company’s new regimen awaits regulatory approval, after which it should be ready to bounce back. The future shareholder dilution adds another element of danger to the investment and makes it difficult to value. So, I think the stock is likely to bounce back, but an investment today would definitely be a speculative bet and it would be one of those trades where I assume any investment has the ability to go zero. Thus, an assessment of the risk-reward ratio must be made.

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PleaseLoan eliminates endless loan lines with its online platform that makes the borrowing process easier https://hibirgeur.com/pleaseloan-eliminates-endless-loan-lines-with-its-online-platform-that-makes-the-borrowing-process-easier/ Fri, 24 Jun 2022 20:57:30 +0000 https://hibirgeur.com/pleaseloan-eliminates-endless-loan-lines-with-its-online-platform-that-makes-the-borrowing-process-easier/ The loan company provides loan services to government and private employees to help them with additional resources that can help their financial difficulties Award Loans are unsecured, fixed, low-interest loans specifically designed for federal employees. These loans are easily accessible even for employees who have bad credit because the loans are paid by deduction from […]]]>

The loan company provides loan services to government and private employees to help them with additional resources that can help their financial difficulties

Award Loans are unsecured, fixed, low-interest loans specifically designed for federal employees. These loans are easily accessible even for employees who have bad credit because the loans are paid by deduction from the employee’s monthly salary. Award loans are essential to the well-being of federal employees to float them through uncertain financial tides, as well as to act as a lifeline in an emergency. It is important that the task of accessing such a loan is handled by a reputable lending company and PleaseLoan is the ideal company for this service.

PleaseLoan is an online platform designed to connect consumers with handpicked lenders across the country, based on an exclusive team of professionals who are focused on the customer’s needs and are positioned to improve their financial situation in the best way. possible. The process for allotment loans with PleaseLoan is seamless as the customer simply has to submit their application, wait for a response, and electronically sign the loan agreement, all within a single business day.

Additionally, PleaseLoan is a safe and confidential platform as the customer’s credit is not checked and the customer does not need to disclose their intentions for the loan. Borrowers have access to more of the company’s loan services, including providing installment loans for people with bad credit, emergency loans and payday loans. Loans for federal employees through PleaseLoan are up to $5,000, which is approved regardless of credit score and deposited directly into the customer’s account.

For more information, please visit https://www.Pleaseloans.com/

About loans please

Please Loans is owned by financial expert and finance enthusiast, Alex Ostapovich.

Media Contact
Company Name: Please lend
Contact person: Alex Ostapovich
E-mail: Send an email
Call: (866) 336-3850
Country: United States
Website: https://www.Pleaseloans.com/

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Revival Patch Reviews – Will Japanese Revival Patch Work For You? https://hibirgeur.com/revival-patch-reviews-will-japanese-revival-patch-work-for-you/ Thu, 16 Jun 2022 17:57:40 +0000 https://hibirgeur.com/revival-patch-reviews-will-japanese-revival-patch-work-for-you/ As individuals, we suffer from many disorders and other health problems that are never completely solved by conventional medicine. Many alternative therapies and treatments have been used to fill in the gaps that modern medicine cannot yet explain or cure. Some common alternatives to scientific medicine are acupuncture, homeopathy, reflexology, and oriental practices. Detoxifying foot […]]]>

As individuals, we suffer from many disorders and other health problems that are never completely solved by conventional medicine. Many alternative therapies and treatments have been used to fill in the gaps that modern medicine cannot yet explain or cure. Some common alternatives to scientific medicine are acupuncture, homeopathy, reflexology, and oriental practices. Detoxifying foot pads belong to this group of alternative treatments.

What is a Revival patch?

The manufacturers claim that the Relaunch fixes can promote vitality, relieve stress and tension, and keep your mood in check for a restful night’s sleep. Some people claim that the patches have helped them with back problems, high blood pressure, headaches, cellulite, depression, diabetes, insomnia, and weight loss.

Each user explains how the detox foot patches worked for them. Some claim that while conventional medicine treats the symptoms, the Revival Patch helped detoxify their body and made the patches seem like they were getting to the root cause of their problem. One of the manufacturer’s most persistent claims is that the patch can help reduce aging by detoxifying the body’s vital organs.

Foot body detoxification has been used in ancient Asian medicine for centuries to treat multiple ailments. It mainly relies on natural herbs harvested from Japanese forests as an all-natural remedy. Revival patches are infused with vitamins and extracts and work by eliminating toxins through the sweat glands located in the foot.

How to Use Revival Patches

Revival patches are recommended for nighttime use on the soles of the feet so that they can extract toxins such as heavy metals and parasites. Revival patches should be placed near the bedside table so you can apply and wear them while you sleep.

Tear off the paper and place the detox patch on the soles of your feet. The patches are a little sticky and won’t fall off your feet. You should use them for 6-8 hours to allow the herbs and vitamins in the patch to be fully absorbed. Pads may show results with a color change due to humidity to indicate their effectiveness. Each Revival patch can only be used once and a new patch must be used for the second night.

What are the ingredients in Revival patches?

Revival patches contain the following ingredients:

bamboo vinegar –Bamboo vinegar is a brownish liquid from the condensation of bamboo. Bamboo vinegar has been used for a variety of natural health benefits, such as; promoting better digestion and eliminating foul odors, supporting gut health and liver health, and stopping diarrhea. Findings from a 2013 study show that bamboo vinegar has anti-inflammatory properties in vitro and in vivo.

ginger powder –Ginger powder is extracted by grinding the dried ginger root. It has many culinary uses and health benefits, such as relieving stomach pain. Topical application to the skin can help fight free radicals in the skin for a healthy complexion.

Tourmaline – Tourmaline is a natural gemstone. Although there is no scientific data on its health benefits, it is claimed to promote good health.

chitin – Chitin is a complex sugar molecule found in the exoskeleton of arthropods and the cell walls of fungi. It is often consumed to provide prebiotic intestinal flora. Application of the compound has anti-inflammatory properties.

The Science Behind Revival Patches

Revival patches contain natural ingredients of various types and compositions. There is evidence that the items have anti-inflammatory properties that can help you ward off disease.

Foot detox patches can be used as alternative remedies for different ailments; nevertheless, there are no scientific studies on Revival patches to support or discourage their use. The Mayo Clinic recommends people wait for scientific evidence before using them.

User reviews and ratings

Although the medical community has not studied or endorsed the use of Revival Patches, they do contain health-promoting ingredients. Customers who have provided reviews are satisfied with the product and say they would recommend using the Revival patches to their close friends and family.

Their overall ratings are very high, with ratings above four out of 5 stars. Most negative reviews are those that claim the pads fall off because the adhesive isn’t strong enough and recommend using socks to hold it in place. in place. One reviewer says he doesn’t understand how the product works, but he’s grateful he used it.

What are the benefits of Revival patches?

Are there any downsides to Revival Patches?

  • The supplement’s website does not contain any information about clinical trials.
  • There is no science supporting its use.

Buy Rebirth Patches

Consumers can purchase the Revival Patches on their official site at the following prices:

  • 10 Revival patches $29.99 + $4.95 shipping
  • 20 Revival patches $44.99 + free shipping included
  • 30 Revival patches $59.99 + free shipping included
  • 50 Revival patches $69.99 + free shipping included
  • 100 Revival patches $109.99 + free shipping included

Customers are offered shipping insurance on Revival patches for an additional $9.99 at checkout. The Revival Patches company offers its customers a 60-day money back guarantee, which can be claimed by contacting customer service at:

  • contact@electronicsimpact.com

Last words

More research needs to be done on the use of detox foot patches and their effectiveness so that they can help consumers use the product correctly. Consumer reviews and favorable ratings can support the use of the product. Revival patches are worn on the feet while the user sleeps to flush out toxins that can build up in the body and cause poor health.

Because customer reviews are so favorable and Revival Patches contain all-natural ingredients, we recommend using Detox Patches. Consumers can head to the official Revival Patches website to exclusively order their first pair >>>

SIMILAR ITEMS:

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The links contained in this product review may result in a small commission if you choose to purchase the recommended product at no additional cost to you. This serves to support our research and writing team. Know that we only recommend high quality products.

Disclaimer:

Please understand that any advice or guidance revealed herein does not even remotely replace sound medical or financial advice from a licensed health care provider or licensed financial advisor. Be sure to consult a professional doctor or financial advisor before making any purchasing decisions if you are using any medications or have any concerns from the review details shared above. Individual results may vary and are not guaranteed as statements regarding these products have not been evaluated by the Food and Drug Administration or Health Canada. The effectiveness of these products has not been confirmed by the FDA or Health Canada approved research. These products are not intended to diagnose, treat, cure or prevent any disease and do not provide any type of enrichment program. Reviewer is not responsible for pricing inaccuracies. See the product sales page for final prices.

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Who really pays with buy now, pay later companies like Klarna and Affirm: NPR https://hibirgeur.com/who-really-pays-with-buy-now-pay-later-companies-like-klarna-and-affirm-npr/ Sun, 12 Jun 2022 21:10:24 +0000 https://hibirgeur.com/who-really-pays-with-buy-now-pay-later-companies-like-klarna-and-affirm-npr/ CHERYL W THOMPSON, HOST: If you’ve shopped online recently, you might have seen an option that would let you pay some now and the rest later, interest-free. Buy now, pay later Businesses have exploded in popularity during the pandemic. Klarna, Afterpay and Affirm are just a few of them. Now Apple is getting in the […]]]>


CHERYL W THOMPSON, HOST:

If you’ve shopped online recently, you might have seen an option that would let you pay some now and the rest later, interest-free. Buy now, pay later Businesses have exploded in popularity during the pandemic. Klarna, Afterpay and Affirm are just a few of them. Now Apple is getting in the game with Pay Later. So what’s behind this trend, how does it work and who is actually paying? For that, we called Alexi Horowitz-Ghazi of Planet Money. He looked at buy-now-pay-later services in a recent episode of Planet Money. Alexis, welcome.

ALEXI HOROWITZ-GHAZI, BYLINE: Thanks for inviting me.

THOMPSON: So buy now, pay later sounds simple, but is it? Can you explain to us how these services work?

HOROWITZ-GHAZI: Of course. So buy now, pay later is a form of consumer credit – like credit cards or payday loans or other things that we’ve seen – but it’s sort of a new form. So the way it works is you’ll be shopping online or increasingly at more and more IRL stores and instead of paying the full price with a credit card or debit card or something, you will be offered a buy now, option to pay later. Usually it’s this four-part payment model, which means they’ll ask for installment payments. You’ll pay the first installment immediately using, you know, whatever bank account or credit or debit card you want. They’ll take that upfront payment, and then you pay them back in regular installments. And everything is irrelevant. It works much like an old-fashioned layaway, except with buy now, pay later, you get what you buy immediately.

THOMPSON: So how do companies make money if there’s no interest? Someone gets paid.

HOROWITZ-GHAZI: That’s true. So generally lending money is profitable due to a combination of interest and fees or perhaps collateral. There is no warranty with these things. They’re not going to repossess your Nike sneakers and try to resell them to recover, you know, your missed payments or whatever. And there is no interest, as you mentioned. And the fees, although there are late fees and there are forms of interest that kick in if you repeatedly fail to pay, the fees really aren’t that high. And that’s not the center of the business model. The way these companies make their money is that they collect fees from merchants – so the companies that sell you the goods you buy online or in person. And they charge between 4 and 9.5%, which can be much higher than what credit cards usually charge, which is between 2 and 4%.

THOMPSON: If the merchant has to pay these fees, do merchants pass these fees on to the consumer through higher prices?

HOROWITZ-GHAZI: Presumably it’s happening to some extent, but it’s still just the beginning for this model. And for the most part, it seems like the model is actually working for everyone involved, because what the buy now, pay later businesses are offering these merchants is the promise of a lot more sales. So they’re bringing in a bunch of new customers, people who maybe haven’t used credit cards or might be a little allergic to the idea of ​​using credit – so a lot of Zoomers and the millennials who grew up in the aftermath of the financial crisis and just don’t want to use credit cards – and people who, you know, might have thin credit histories or bad credit and might otherwise not not have access to things like credit cards and other forms of loans. So they’re bringing in new people, and then also there’s something in the psychology of sort of breaking down the total price into those installments – into those smaller installment prices that make people a little less hesitant to complete their order – you know, to click buy when they’re at the end of their purchase, when they’re at checkout.

THOMPSON: So you know the old adage, don’t you? – that if it sounds too good to be true, it probably is. Where can this go wrong for the consumer?

HOROWITZ-GHAZI: That’s true. So, you know, it’s – these payments are interest-free, which means it can be pretty cheap money, you know, if you meet all the terms and conditions of the loans. The problem with these is kind of the flip side of being outside the normal credit reporting system. This means it’s easier to get these buy now, pay later loans early. But that also means that each of those loans isn’t reported to any sort of central repository, which means you can take out, you know, five or six different loans from five or six different companies without any of they don’t know. That means you can get into all that payout whirlwind and get in trouble pretty quickly.

And that’s one of the things that raised red flags for, you know, consumer groups and regulators. Last fall, the House Financial Services Committee of Congress held a hearing on all of this. And right now, the Consumer Financial Protection Bureau has opened an investigation into the buy now, pay later industry. They examine the risk to consumers of overextending themselves, what types of data are collected by these companies and how they are used, and how these services fit into existing regulations for other types of credit products.

THOMPSON: Why do you think, Alexi, this practice took off during the pandemic?

HOROWITZ-GHAZI: Well, buy now, pay later companies started in places like Australia and Scandinavia, and they kind of grew over the years. They came to the United States largely around 2015, and they were kind of at that moment of critical mass right at the start of the pandemic. They were starting to get picked up by bigger and bigger companies, eventually places like Amazon and Walmart and Target, which exposed them to a lot more people. And that happened just as a lot of lockdowns were happening, and a lot of people were turning to the internet and online shopping as a form of retail therapy or just a place to find basic essentials so that they were struggling to figure out how to work from home. And that sort of hovered over this huge explosion in online shopping that’s happened over the years since the pandemic began. It has become a new and increasingly convenient way for people to shop online.

THOMPSON: Some sort of accidental explosion.

HOROWITZ-GHAZI: Yes. I would say it was good timing and a lot of trading strategies came at the right time.

THOMPSON: It was Alexi Horowitz-Ghazi, host and reporter for NPR’s Planet Money. Thank you, Alexis.

HOROWITZ-GHAZI: Thank you.

(SOUND EXTRACTION OF “MOANIN’ BY CHARLES MINGUS”)

Copyright © 2022 NRP. All rights reserved. Visit the Terms of Use and Permissions pages of our website at www.npr.org for more information.

NPR transcripts are created in peak time by an NPR contractor. This text may not be in its final form and may be updated or revised in the future. Accuracy and availability may vary. The authoritative recording of NPR’s programming is the audio recording.

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Credit Canada to Provide ‘Free, Confidential, Non-Judgment’ Debt Help in Sault Area https://hibirgeur.com/credit-canada-to-provide-free-confidential-non-judgment-debt-help-in-sault-area/ Thu, 09 Jun 2022 18:13:42 +0000 https://hibirgeur.com/credit-canada-to-provide-free-confidential-non-judgment-debt-help-in-sault-area/ Content of the article Interested in giving up debt? Content of the article Sault Ste. Marie (CCSSSM) joins the National Agency Credit Canada, the oldest not-for-profit credit counseling agency in the country. “We are thrilled to join the team,” CCSSSM executive director Greg Elsby said in a statement. “We have had a long and positive […]]]>

Content of the article

Interested in giving up debt?

Content of the article

Sault Ste. Marie (CCSSSM) joins the National Agency Credit Canada, the oldest not-for-profit credit counseling agency in the country.

“We are thrilled to join the team,” CCSSSM executive director Greg Elsby said in a statement. “We have had a long and positive partnership with Credit Canada and have chosen to work with them in the future.”

Credit Canada is “committed to providing exceptional service” to those with “too much” debt, said Bruce Sellery, CEO of Credit Canada.

“We are honored that the CCSSSM has chosen us to continue the work they have been doing since 1969,” he said.

“As a larger agency, we will be able to bring more educational resources and creditor relations to serve clients in the region, while working to ensure that the care, compassion and confidentiality for which the CCSSSM was known are maintained. .”

Consumers who carry a balance on their credit cards from month to month face higher interest charges and ultimately more debt.

“If they start to miss bill payments, they may receive collection calls, which lowers their credit score and makes it harder to get low-interest credit,” a statement read. of Credit Canada. “Those with low credit scores can rely on payday loans and other high-interest products to make ends meet, which only makes things worse.”

Credit Canada offers free credit counseling services through one-on-one telephone consultations with certified non-profit credit counsellors. During an initial appointment, a credit counselor reviews a client’s debt situation in order to offer various relief options.

Content of the article

This may include negotiating with creditors, using different payment methods, signing up for a debt consolidation program, or exploring alternative solutions, such as debt consolidation loans or insolvency.

“All credit counseling services are free, confidential and non-judgmental,” the statement said.

Tammy Drover leads Credit Canada’s client services staff in Sault Ste. Marie and the surrounding area.

“She knows the people and the real issues people are facing in the community,” Credit Canada said. “With rising gas, food and housing prices, more and more Canadians are having difficulty paying their bills, forcing some to rely more on credit.”

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Ignore Tom Brady and Matt Damon on Crypto and Celebrities on Money in General https://hibirgeur.com/ignore-tom-brady-and-matt-damon-on-crypto-and-celebrities-on-money-in-general/ Thu, 02 Jun 2022 12:00:00 +0000 https://hibirgeur.com/ignore-tom-brady-and-matt-damon-on-crypto-and-celebrities-on-money-in-general/ Amid the current crypto crash, a lot of people are a little miffed at celebrities who have bought this stuff out. Gwyneth Paltrow, Tom Brady, Reese Witherspoon, and even Larry David were all happy to help with cryptocurrency mainstreaming in recent months, only to go quiet now that things have gotten a bit difficult. For […]]]>

Amid the current crypto crash, a lot of people are a little miffed at celebrities who have bought this stuff out. Gwyneth Paltrow, Tom Brady, Reese Witherspoon, and even Larry David were all happy to help with cryptocurrency mainstreaming in recent months, only to go quiet now that things have gotten a bit difficult. For Matt Damon, “Fortune favors the brave“…who apparently aren’t brave enough to say that maybe it was a bit of a hoot trying to get ordinary people to gamble their hard-earned money on hyper-speculative assets.

If crypto was so certain to make you money, to some degree, why would it need so many high profile celebrity endorsements? After all, money is the most famous celebrity there is.

Here’s the thing: famous people endorse and support financial products and services all the time – products and services that fall within the sketchy spectrum. If you’re going to get mad at LeBron James for playing in a Crypto.com Announcementyou should probably also be annoyed by these Reverse Mortgage Ads by Tom Selleckor places where William Devane talks about buying goldor the litany of A-listers enter the SPACs. In the 1990s, Whoopi Goldberg was a Flooz spokespersonthe cybercurrency of the time which was finally shot down because of crime and fraud.

It might seem a bit obvious to point out – celebrities always make mentions – but I think they do, especially when it comes to money, it’s worth dwelling on. Personal finance and investing are supposed to be a little unsexy; the way you allocate your 401(k) isn’t particularly cool. Today, marketers, advertisers, and the wider culture have managed to make it a hobby and a way of life. Trust has declined so much in traditional financial institutions. People might think Bear Stearns wasn’t doing a great job in the 2000s, so why not take a chance on what Floyd Mayweather says was a good idea now? Companies are able to maneuver this institutional mistrust, replacing cold, untrustworthy, faceless banks with likeable celebrities, to whom consumers might be more open.

Banks left customers “dry” after the 2008 global financial crisis, explained Ana Andjelic, brand manager and expert in business sociology. “What is that trust replaced by? she says. “With brands, with celebrities.”

Yes, famous people are often rich, but not because they participated in a get-rich-quick scheme or made a smart investment in some obscure product. They often have financial advisors who help them manage and grow their wealth – and those advisors don’t tell them to pile into dogecoin.

Celebrities = $$$

Companies use famous people to try to sell their products because they know it can work. According to a 2012 study at Harvard Business School, athlete endorsers drove a 4% increase in sales. Several studies found that celebrity endorsement announcements drove up stock prices.

When it comes to finance in particular, the rich and famous aren’t the most influential in consumers’ lives, but they do make a difference. A morning consultation 2021 investigation found that 20% of investors and 45% of cryptocurrency owners would invest in cryptocurrency if famous people endorsed it (although still behind financial advisers, family members or friends and journalists of ‘business). Young consumers may also be more influenced by celebrity — CreditCards.com found that 28% of Gen Zers and 24% of Millennials said they seek financial advice from social media and influencers.

Because people are no longer slumped in front of network TV on Friday nights, the captive audience of advertisements, brands are increasingly relying on celebrities and influencers to connect with consumers, explained Shiv Gupta, expert. of digital marketing and director of the consulting company Quantum Sight. . “The channels are narrowing,” he said. A celebrity can catapult your product to consumers through their existing audience and spheres of influence. You can see how it went with crypto. “You had the nerdsphere or the geeksphere pushing the concept of crypto as something that has potential,” Gupta said. “The next step was Larry David and everyone else who came in and started discussing crypto. It was more like saying, “See, that’s common.”

The generalization of a financial product makes it more comfortable for consumers, giving them the impression that it is normal to try it. It can also make them forget about the stakes, even in high-stakes spaces.

“Celebrities endorsing brands is nothing new, we’ve seen that for decades. Selling crypto and NFTs is, obviously, a lot more complex and I would say requires more professional responsibility than selling crypto. typical consumer goods,” said Anindya Ghose, a business professor at NYU. “If you approve of potato chips and energy drinks, that’s another thing.

If you bought a bag of chips because an actor said so and it turned out gross, it doesn’t matter. But if you have taken out a reverse mortgage, which regulators have warned against ads for, and accidentally lost your house because Tom Selleck said, it’s not so good. The focus is on young people and crypto now, but no generation is immune.

“There are those who say, ‘Well, I like Tom Selleck, I grew up with Tom Selleck, he seems like a famous guy. After all, he fought crime on Magnum IP”” Gupta said. “It’s a generational thing, he gets a little older with you.”

Probably don’t listen to celebrities talking about money

If you had asked me in 2004 if I listened to the guy from CO or the guy from Goodwill hunting what to do with my money, I hope I didn’t say either, but I probably would have said the Goodwill hunting dude. Turns out 2004 me would have been wrong. In fact, you shouldn’t listen to either of the Goodwill hunting guys because Ben Affleck accomplices for sports bettingwhich is often not ideal for the end user’s wallet either.

In the end, maybe I should have said CO guy, Ben McKenzie. He has a few points about listening to famous people about money and, in particular, crypto… which is you shouldn’t. McKenzie called celebrities pumping crypto a “moral disaster” in a 2021 article for Slate alongside journalist Jacob Silverman. “These rich and famous entertainers might as well be asking for payday loans or sitting their audiences at a rigged blackjack table,” they wrote. (To be fair, McKenzie also has something to gain here – he and Silverman are writing a book on crypto scams right now that they’re probably getting paid for, and he’s carved himself a celebrity anti crypto.)

Celebrities may not have their fans’ best financial interests at heart. I love Reese Witherspoon, but his crypto tweet, at least for now, feels pretty irresponsible. “At the end of the day, it’s all about the money,” Andjelic said.

It’s not just that celebrities encourage unnecessary risks. Kim Kardashian and Floyd Mayweather may have recently been part of a crypto pump-and-dump scheme. The boxer is no stranger to scandal in the crypto space: In 2018, he and music producer DJ Khaled fees paid from the SEC for failing to disclose that they were paid to promote initial coin offerings, or ICOs, a trend so dubious we rarely hear about it anymore. Actor Steven Seagal got in trouble for something similar too.

It’s easy and tempting to dismiss much of this — of course, celebrities shouldn’t be a reliable source of financial information. And regulators have a say here to protect consumers – endorsers are supposed to be honest to be paid. But famous people are often creeping into the way we think about money in a somewhat uncomfortable way. If you think about it for a moment, celebrities associating themselves with even mainstream names in finance are a bit, well, huh. Jennifer Garner looks good but also isn’t rich just because she’s super savvy with her Capital One card.

Celebrities and financial brands are teaming up to sell people a lifestyle, an aspiration for wealth that may not be realistic. The famous lend their reputation to products that can be questionable. They often do this without acknowledging their own financial stakes – Tom Brady is not just a spokesperson for crypto exchange FTX, he is an investor in the business – or by the way that they can take risks, maybe the average person shouldn’t. And the downside risk of lending their reputation, if a project starts from the grassroots, may not be significant.

“It’s not like oh Tom Brady stopped doing anything and now he’s just a crypto boy, you know?” said Andjelic. “People care for a minute.”

Except, of course, the people who lost.

We live in a world that constantly tries to trick and fool us, where we are always surrounded by scams, big and small. It may seem impossible to navigate. Every two weeks, join Emily Stewart in examining all the little ways our economic systems control and manipulate the average person. welcome to The great pressure.

Do you have any ideas for a future column? What is it about the economy that bothers you that you can’t quite put your finger on? E-mail emily.stewart@vox.com.

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New laws and more affordable lenders could shake up the payday loan market https://hibirgeur.com/new-laws-and-more-affordable-lenders-could-shake-up-the-payday-loan-market/ Tue, 31 May 2022 09:01:00 +0000 https://hibirgeur.com/new-laws-and-more-affordable-lenders-could-shake-up-the-payday-loan-market/ Inflation has particularly affected people who are already struggling to get gas in their tanks and groceries in their refrigerators. For many, a payday loan may seem like the only way to get the money needed. In recent years, however, as more states impose restrictions on risky short-term lending, new lenders have emerged offering small, […]]]>

Inflation has particularly affected people who are already struggling to get gas in their tanks and groceries in their refrigerators. For many, a payday loan may seem like the only way to get the money needed.

In recent years, however, as more states impose restrictions on risky short-term lending, new lenders have emerged offering small, lower-cost loans, making it easier than ever before to find a loan. an affordable loan that won’t drag you into unmanageable debt. .

In some states, new laws mean better loans

There is currently no federal law for maximum interest rates on small dollar loans; instead, states decide whether to cap payday loan rates. Therefore, the cost to borrow a few hundred dollars often depends on where you live.

In recent years, four states — Colorado, Hawaii, Ohio and Virginia — have passed laws that effectively reduce the cost of small loans and give borrowers longer repayment terms. A study by The Pew Charitable Trusts published in April found that even under the reforms, payday lenders were still operating, but with more secure loans.

Also Read: More US Subprime Borrowers Are Missing Their Loans

Although some new lenders began doing business in these states once the laws took effect, the main impact was that existing payday lenders consolidated their storefronts and made their loans more affordable, says Alex Horowitz, director of research at Pew.

National banks and local credit unions step in

A bank or credit union may not have been your go-to for a small loan in the past, but it could be today.

Seven major banks have started offering or announced plans to offer small-dollar borrowing options with low annual percentage rates in recent years, Horowitz says, including Bank of America BAC,
-0.78%,
Wells Fargo WFC,
-1.55%
and Truist TFC,
-1.42%.
These loans are available to existing bank customers nationwide, regardless of state interest rate limits.

Banks primarily rely on customers’ bank history rather than their credit scores to determine if they qualify for a small loan. The loans – which start from $100 – are usually repaid in monthly installments at annual interest rates no higher than 36%, the maximum rate an affordable loan can have, according to consumer advocates.

“The fact that banks start offering small loans could disrupt the whole payday loan market,” says Horowitz.

Local credit unions have membership requirements and maintain lower profiles than payday lenders, so they’re often overlooked by people who need cash fast, says Paul Dionne, director of research at Filene, a think tank that aims to help credit unions serve their communities.

But if you can walk to your local credit union, chances are you’ll qualify for membership, he says.

This is because credit unions often serve people who live or work in their communities. These organizations are working to provide financial inclusion by tailoring their products, like loans, to better meet the needs of their customers, Dionne says.

“Credit unions are getting better at having the best product and not saying no and figuring out what’s the best fit for that person coming in,” he says.

Lily: CFPB closes payday lender it calls venture capital ‘darling’

Other Borrowing Options

Even in states where laws seek to ban payday loans altogether, people can find alternatives to risky borrowingsays Charla Rios, small loan and debt researcher at the Center for Responsible Lending.

You may be able to work out a payment plan with your utility company or borrow from a friend or family member, she says. Here are some borrowing options to consider before getting a payday loan.

Payday advance. Some companies, including Walmart WMT,
-0.66%
and Amazon AMZN,
+1.60%,
allow their employees to access part of their paycheck earlier as benefits. It can be an interest-free way to borrow money if your employer offers it, but since the repayment comes from your next paycheck, it’s best to use it sparingly.

Cash advance applications. Apps like Earnin and Dave let you borrow a small amount of money, usually $25 to $200, before payday. They sometimes charge a fee for instant access to your money or ask for voluntary tips. They also take reimbursement from your next paycheck.

“Buy now, pay later.” For necessary expenses, a “buy now, pay later” loan allows you to purchase an item with partial payment only. You pay the balance in equal installments, usually over the next six weeks. This type of financing can be interest-free if you pay the full balance on time.

Low interest installment loans. Depending on your credit score and income, you may qualify for an installment loan with an APR of less than 36%. These loans have amounts ranging from $1,000 to $100,000 and are repaid over longer terms, usually two to seven years. Online lenders who often offer loans for bad credit prequalify you for a loan using a soft credit pull, which allows you to compare loans without affecting your credit score.

More from NerdWallet

Annie Millerbernd writes for NerdWallet. Email: amillerbernd@nerdwallet.com.

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Jim Beam column: Payday loan bill must be vetoed – American Press https://hibirgeur.com/jim-beam-column-payday-loan-bill-must-be-vetoed-american-press/ Sun, 29 May 2022 12:00:26 +0000 https://hibirgeur.com/jim-beam-column-payday-loan-bill-must-be-vetoed-american-press/ Louisiana lawmakers have passed a payday loan bill that will only cause more debt problems for citizens who need the financial boost they can get elsewhere.metrocreativeconnection.com From time to time, Louisiana lawmakers have come to the aid of those who make so-called payday loans. Sen. Rick Ward, R-Port Allen, is this year’s champion with Senate […]]]>

From time to time, Louisiana lawmakers have come to the aid of those who make so-called payday loans. Sen. Rick Ward, R-Port Allen, is this year’s champion with Senate Bill 381.

Legislation that was narrowly passed by both houses would cap finance charges at 100% of the original loan amount. That means lenders could charge up to $1,500 in fees on a $1,500 loan, for a total repayment of $3,000, according to The Advocate.

The senator said his “Louisiana Access to Credit Loans Act” would help state residents living on a paycheck make ends meet when faced with surprisingly large expenses.

Under current law, lenders can offer a loan of up to $350, due on the borrower’s next payday. The maximum the lender can make per loan is $55. Ward’s bill does not change that.

Ward sponsored another payday loan bill in 2018. It stated that the loan term could not be less than three months and could not exceed 12 months. The amount of the loan could not be less than $500 and could not exceed $875. The bill passed the Senate 20-17 but died in the House Commerce Committee.

I wrote in a June 3, 1999 column about a Bossier City woman who got one of these loans. She needed $200 for an emergency out-of-town trip and took out a two-week loan. The maximum they lent at that time was $201 and it had to be paid back in 14 days.

When a customer borrowed that $201, they had to leave a check for $246 to cover the principal and $15 in interest. The other $30 was for documentation and set-up costs. That’s an annual interest rate of over 580 percent.

“It was a little high,” the borrower said, “but when you need it, you need it.”

The Associated Press reported that there were about 30 payday loan companies in the state in 1992. That number grew to 455 in 1998 and 489 by the end of 1999.

Foster Campbell, a current member of the Louisiana Civil Service Commission, was a state senator in 1999. He said, “We’ve had 500 of these companies open since 1992 and none of them have failed. . I have never heard of such statistics. But the reason why they didn’t is because they deceive people by charging outrageous interest rates.

OK, back to Ward’s bill which passed the House 54-35, one vote more than the 53 needed. The Senate vote was 20 to 14, the exact majority he needed.

Republican senses Mark Abraham of Lake Charles and Mike Reese of Leesville voted for Ward’s bill. Sen. Jeremy Stine, R-Lake Charles, voted against. Sen. Heather Cloud, R-Turkey Creek, was recorded as absent.

GOP Representatives Ryan Bourriaque of Grand Lake, Dewith Carrier of Oakdale, Troy Romero of Jennings and Phillip Tarver of Lake Charles voted for the bill. Representatives Wilford Carter, D-Lake Charles; Charles Owen, R-Rosepine, and Rodney Schamerhorn, R-Hornbeck, voted against. Representative Brett Geymann, R-Moss Bluff, was recorded as an absentee.

The bill now awaits action by Governor John Bel Edwards. Lenders would make most of their money through monthly maintenance fees of up to 13% of the original loan amount.

Alex Horowitz, consumer credit researcher at The Pew Charitable Trusts, told The Advocate he had never seen such high fees. He said the bill would expose Louisiana consumers to financial harm, rather than creating an affordable loan market. Horowitz said seven of the nation’s 12 largest banks have launched or announced programs to provide small dollar loans to customers.

Kenneth Pickering twice served as Louisiana’s chief banking regulator. He said he had no idea what the maintenance fee even covers. “Once a loan is on the books, there’s nothing left to maintain,” he said. Pickering calls it more interest.

Stanley Dameron, Commissioner of the Office of Financial Institutions, said: “Some of the people applying for these loans might not qualify from your bank, but they certainly would from a credit union or finance company. “

Pelican State Credit Union’s Jessica Sharon told lawmakers that credit unions were explicitly created to help people of modest means.

Even an official from a state association that represents payday lenders said Ward’s new product was unnecessary. He said the loans are already available in Louisiana at a fraction of the cost. “It’s greed and arrogance at the highest level,” he said.

Ward’s bill is certainly a strong candidate for a gubernatorial veto.

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Parking meter deal gets even worse for Chicago ratepayers, annual audit says https://hibirgeur.com/parking-meter-deal-gets-even-worse-for-chicago-ratepayers-annual-audit-says/ Fri, 27 May 2022 12:08:38 +0000 https://hibirgeur.com/parking-meter-deal-gets-even-worse-for-chicago-ratepayers-annual-audit-says/ CHICAGO – In their failed bid to blockade Bally’s $1.7 billion River West casino, downtown city council members warned the deal was rushed — just like the one that privatized Chicago’s parking meters — and that it would end up being “even worse” for taxpayers. This dire prediction is hard to imagine, given the results […]]]>

In their failed bid to blockade Bally’s $1.7 billion River West casino, downtown city council members warned the deal was rushed — just like the one that privatized Chicago’s parking meters — and that it would end up being “even worse” for taxpayers.

This dire prediction is hard to imagine, given the results of the latest parking meter audit by accounting giant KPMG.

It shows Chicago’s parking meter revenue is nearly back to pre-pandemic levels. After dropping to $91.6 million in 2020, they jumped to $136.2 million last year.

The increase stems from a booming economy in Chicago and hundreds of new metered spaces in Montrose Harbor and on busy neighborhood streets created as part of Mayor Lori Lightfoot’s 2021 budget.

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With 61 years remaining on the 75-year lease, Chicago Parking Meters LLC has now recovered its entire $1.16 billion investment and $502.5 million more.

Private investors as far away as Abu Dhabi would have done even better had they not brought in a new investor and borrowed $22 million at 15% to weather the pandemic. This loan was fully repaid last year.

Additionally, four city-owned underground parking garages brought in $22 million, up 37.5% from $16.2 million last year.

Thanks to higher traffic and a further increase in tolls, the privatized Chicago Skyway generated $114.3 million. This represents a 34.7% increase in revenue and far more than Skyway’s $92 million in annual revenue in 2019, the year before the lockdown closed.

Not a penny of that revenue eased the burden on Chicago taxpayers, who had to absorb a $76.5 million increase in the city’s property tax after a $94 million property tax hike the last year.

Parking meters, downtown garages and the Skyway were all dumped by then-Mayor Richard M. Daley, who used the money to avoid raising property taxes while the pension funds of city ​​employees sank deeper into the hole.

Of these three agreements, the parking meter lease was the biggest political nightmare for the two mayors who inherited it and for the members of Council who approved it with lightning speed.

There have been steep increases in outgoing rates, including parking downtown, from $3 per hour in 2008 to $6.50 per hour in 2013. It is now $7 per hour.

Motorists were so infuriated by the rate hikes that they vandalized and boycotted meters, leading to a dramatic drop in street parking. Revenues eventually recovered — until the pandemic.

The latest audit once again proves how attractive the deal was for private investors.

Although Chicago Parking Meters LLC lost a third of its annual revenue in 2020, the system still generated enough money that year to generate a distribution of $13 million to investors.

Total revenue was well above the $23.8 million in meter payments in 2008, the year before CPM took over the system. Indeed, the mayor and city council, fearful of risking a political backlash by raising parking meter rates themselves, opted to offload the meters instead of directly hiring LAZ Parking to administer a city-owned system with a new technology.

Investors recouped an additional $6.7 million through a contractual provision requiring the city to reimburse investors for each space taken out of service.

This includes temporary street closures for special events, sewer repairs and other construction projects and street closures that have allowed restaurants and bars to serve more customers outdoors when indoor capacity was restricted or even prohibited.

In the full 12 years since the meters were privatized, the city has paid out $78.8 million in “regularization” payments, as they are called.

That’s even after then-Mayor Rahm Emanuel changed the fine print in 2013, reducing the city’s liability by increasing the hours and days motorists pay for parking.

Taking into account the recently announced figure for 2021, private investors have already extracted $2.1 billion from the deal, in part by refinancing three times. The last $1.2 billion refinancing was completed in 2019.

Now that parking revenue is back to normal, the company should end up earning at least six times more than what investors put in over the life of the deal.

The results of the latest audits were provided to the Chicago Sun-Times by attorney Clint Krislov. As director of the Center for Open Government Law Clinic at IIT Chicago-Kent, Krislov has reviewed dozens of transactions and provides an annual analysis of each year’s results.

“These three deals turned out to be like payday loans. They were so myopic. They took the money fast, ignoring the fact that they were burdening the city with terribly structured, undervalued deals that will cost the city for decades to come,” Krislov said Thursday.

“The city should have hired a parking operator to update the technology and operate the system for the city. If they had done that and gotten a better price for the three assets, Chicago today would have between $3 billion and $4 billion. more dollars than she has from those three transactions combined.”

Scott Burnham, a spokesman for Chicago Parking Meters LLC, declined to comment on the audit.

Although the parking meter lease is the deal Council members and their constituents love to hate, Krislov once again argued that it “pales in comparison” to the Skyway deal.

A decade after investors gave the city more than $1.83 billion to lease the Skyway for 99 years, the rights to operate the privatized highway and escalating tolls have been sold to a consortium of three regimes. Canadian pensions for $1 billion more than the original price.

“Canadian pension funds spent $2 billion buying the Skyway and it’s working well. It would have worked well for the city if the city had just hired an operator to run the Skyway,” and collect the growing tolls for the city , Krislov said. .

Krislov tried to have the meter and garage offerings declared illegal on the grounds that the city cannot legally sell on public roads.

He further claimed that the garage deal both limits development in the Loop and subjects the city to giant penalties, such as the $62 million the city spent to compensate the owners of the Millennium Park and Grant garages. Park after the city cleared the Aqua Building, 225 N Columbus Drive, to open a competing garage.

Both lawsuits were dropped after the Emanuel administration defended the deals.

As mayor-elect Lori Lightfoot has promised to take a fresh look at the parking meter deal and try to find a way to break the lease, shorten it or sweeten the sour terms for taxpayers.

She called it a “smudge under your saddle” that “keeps rubbing and rubbing,” but her administration did nothing to remove it.

“We know they’re the ones who call when the phone doesn’t ring, as they say,” Krislov joked, paraphrasing a Randy Travis song.

Getting serious, Krislov said he would have been more than happy to team up with mayor to “fight this thing”.

“If the city administration had said, ‘This is not a legal agreement. The city cannot agree to sell the right of way to individuals in this type of agreement, “we might have managed to get the city out of it,” he added. said.

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