Diane Childs Financial Information Outreach Coordinator 2 Our Programs Debt Management Lending Payday amp Consumer Finance Financial Institutions Pre Need Money Transmitters ID: 553023
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Financial Predatory Practices
Diane Childs
Financial Information Outreach CoordinatorSlide2
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Our Programs
Debt Management Lending – Payday & Consumer Finance
Financial Institutions
Pre
Need
Money Transmitters Securities
Pawnshops
Mortgage Lenders
Identity TheftSlide3
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What we doSlide4
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Submitting a complaintSlide5
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License
or Registration1-866-814-9710www.dfcs.oregon.govCheck and VerifySlide6
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Debt Management Companies
Assist with:
Debt Credit repair Loan modificationBankruptcy (how to)Financial education Slide7
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Allowable Fees
Maximum counseling, agreement fee: $50 Maximum monthly fee: $65
7.5% charge = total amount of reduced debt (debt settlement, loan mods, short sale)Slide8
Loan Modifications
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Similar fee structure
Free Help: HUD-certified foreclosure counselors1-800-SAFENETwww.foreclosurehelp.oregon.gov
0Slide9
Red Flags
Debt Management
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Settling for "pennies on the dollar" No adverse affect on credit ratings Don’t pay creditorsUpfront feesSlide10
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Red FlagsLoan Modification
Stop making mortgage
paymentsMortgage payment to hired companyAds, mailings similar to governmentPerforms “forensic audit” Slide11
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Upfront fees Solicitations: email, mail, phone
or Internet pop-up ads Guarantees positive results
Out-of-state attorneys (no registration needed)Combined Red FlagsSlide12
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State of Oregon Licensed
File Number, Notice
Privileged and Confidential
…tri-bureau credit report…owe combined total of
$28,589
Call Now…eligibility
expires
Portland OfficeSlide13
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Actual rates charged
343%950%
800%2737%90%Slide14
Legal Payday Loan Rates
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36% annual percentage rate (APR)* One time origination fee
No renewal fees Restrictions on additional loans*Interest, Fees – 154% if lender charges maximum rate, feesSlide15
Legal Consumer Loan Rates
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36% annual percentage rate (APR) No origination fees
No “bump up” to higher rate Slide16
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Predatory Tactics
Get cash now!
No credit check!Bad credit? No problem!Slide17
Identity Theft Tactics
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License1-866-814-9710www.dfcs.oregon.gov
Check and VerifySlide19
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Cease-and-Desist
$17,500 penalty
Stop collection activityNo licenseExcessive interest rates: 89% - 342%Slide20
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Check License or RegistrationKnow
legal fees, charges, interest ratesContact us:
Check and Verify1-866-814-9710www.dfcs.oregon.govSlide21
More Information
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www.dfcs.oregon.gov
1-866-814-9710