...Payday Loans: Helpful or Hurtful Joseph Santini Monmouth University I. Introduction There is a new trend in lower income communities in the United States called payday loans. The popularity of getting payday loans to help to pay off utilities and short term debts. These loans have become controversial and brought on speculation of the ethics of the loans and their practices. There has been legislation brought through state senates on this issue but with heavy lobbying have not be able to see the light of day. The tactics of these lobbyists have also come into question. The overall question to be answered is if payday loans are good for this country. II. What are Payday Loans? Payday loans are defined on Investopedia as a short-term loan with a small borrowing amount and a high rate of interest. The way it works is the borrower writes a post-dated check for the borrowing amount plus a fee for immediate cash. The lender keeps the check until the agreed date which is normally the borrower’s next payday. These loans are also commonly called cash advance loans or check advance loans. (Investopedia) These are attractive to lower income community because the loans offer them money right away before they earn it. The feeling of having physical cash in their hands makes them confident in themselves. This system is great if you can pay the debt off quickly but if you take just a small amount of time to pay the loan the debt can pile up. This is because these loans have...
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... Payday Loans Executive Summary Payday loans are short-terms, high-interest loans where people go to a physical loan store or via online store that are not banks. They are designed for people who need a quick injection of money before their next paycheck and its purpose is fast, easy money to take care of unexpected bills or emergencies (Watson, Stephanie., 2014). They started around 1959 when the senate passed a bill allowing people to received small amount of money for short-term loans for emergency, such as bankruptcies, bad credit, etc… The bill was to help people who couldn`t receive a regular loan at a normal interest rate. Since then, Payday loans have become very popular and in 1996, Payday lending saw a huge boom when the senate legalized them. In the mid-2000, online lending became available and is now a huge piece of the market (PaydayLoanPay.com., 2011-2014). Recently many controversy have been discussed with the Payday lending industry because of many operating dishonestly and illegally. This huge issue has caused the department of justice to investigate and place restrictions causing many legal and honest operating Payday lending to close shops and employees losing their jobs (Okun, Sarah.). In the meantime, the honest and top Payday lenders have form the Online Lending Alliance (OLA) to defend them and make sure Payday Loans don`t get de-legalized because of cracks in the lending system (Jones, Liz., 2014, March 26). Payday loans...
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...volume of high risk loans that were being bought and sold by financial institutions. The Dodd-Frank Reform would prevent financial institutions from issuing predatory and high risk loans. Richard Cordray was appointed by President Obama while Congress was in Winter 2011-2012 recess. The reason for this unorthodox appointment is that the Republican Representatives are against regulations and would not have passed the appointment. Richard Cordray will focus on the following provision in the Dodd-Frank Reform: “Consumer Protections with Authority and Independence: Creates a new independent watchdog, housed at the Federal Reserve, with the authority to ensure American consumers get the clear, accurate information they need to shop for mortgages, credit cards, and other financial products, and protect them from hidden fees, abusive terms, and deceptive practices.” Richard Cordary will target Payday loans first. Payday loans are short term loans that are secured by a future paycheck. The banks typically charge $10 per $100 borrowed for 10 days or 10% every 10 days. The banks claim that this high rate is justified because of the high risk clients. The actual default rate is between 3 and 4 percent. This is because Customers must have checking accounts and must have their pay or benefits check directly deposited into that account. The maximum loan term is 30 days and the maximum loan amount is usually $500. If the direct deposits are not sufficient to repay the loan within 35 days,...
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...Hutcherson November 27, 2011 Legal and Ethical Issues Concerning Payday Loans * Intro * What is a payday loan? * Who applies for these types of loans? * Where can you apply for a payday loan? * #1 – Legal and ethical issue concerning payday loans? * #2 – Legal and ethical issue concerning payday loans? * #3 – Legal and ethical issue concerning payday loans? * Legal and ethical issue concerning payday loans #1 * State the issue * Explain the issue * Give a solution * Legal and ethical issue concerning payday loans #2 * State the issue * Explain the issue * Give a solution * Legal and ethical issue concerning payday loans #3 * State the issue * Explain the issue * Give a solution * Conclusion * How can payday loans be beneficial to people? * Do I agree with payday loans? * Give my opinion on payday loans With today’s economic climate, opportunities and fast money are the norm in our current society. Payday loans and instant cash are a part of our business institutions as a place for banking and quick fixes to paying due or past due debt. A payday loan is a, “short-term loan, based on a borrower’s check or future deposit, such as a direct deposit from an employer” (Herrfeldt, 1999-2011). Payday loans are located all over the U.S., but are, “…legal in 35 states,...
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...Denew Assignment Accounting Assignment 2: Manufacturing Overhead Borealis Manufacturing has just completed a major change in its quality control (QC) process. Previously, products had been reviewed by QC inspectors at the end of each major process, and the company's 10 QC inspectors were charged to the operation or job as direct labor. In an effort to improve efficiency and quality, a computerized video QC system was purchased for $250,000. The system consists of a minicomputer, fifteen video cameras, and other peripheral hardware and software. The new system uses cameras stationed by QC engineers at key points in the production process. Each time an operation changes or there is a new operation, the cameras are moved, and a new master picture is loaded into the computer by a QC engineer. The camera takes pictures of the units in process, and the computer compares them to the picture of a “good” unit. Any differences are sent to a QC engineer, who removes the bad units and discusses the flaws with the production supervisors. The new system has replaced the 10 QC inspectors with two QC engineers. The operating costs of the new QC system, including the salaries of the QC engineers, have been included as factory overhead in calculating the company's plant-wide manufacturing-overhead rate, which is based on direct-labor dollars. The company's president is confused. His vice president of production has told him how efficient the new system is. Yet there is a large increase in...
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...Organizational Concepts and Terminology The concepts and terminology of an organization is important for any organizations success. The concepts and terminology will include organizational culture, diversity, behavior, and communication. All are important and link with one another in a well organized company. There are written and unwritten rules and assumptions that will define the culture of the organization (The Sergay Group Ltd., 2011). Culture plays out in an organization in many different ways. It can identify the specifics of how information is communicated and how performance is managed. The concepts of culture also specify how projects are coordinated within the organization, and sets up the hierarchical levels and job titles ((The Sergay Group Ltd., 2011). Organizational culture and behavior contribute to the psychological environment of an organization. The culture of an organization is comprised from the organizations past and current assumptions, their experiences and the companies values. The actions of the company and employees towards the company and coworkers define the behavior of the organization. An organization that is successful has a behavior that is friendly and functional, flowing to a hierarchy level of management (The Sergay Group Ltd., 2011). Diversity can be defined as a characteristic of a group of people suggesting differences among those people on any relevant dimension (Hitt, Miller, & Colella, 2006). Key concepts of diversity...
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...defendant avers it did not violate the automatic stay because of the exception provided in 11 U.S.C. § 362(b)(11). The Court has jurisdiction over this matter pursuant to 28 U.S.C. §§ 157 and 1334. The Court heard oral arguments on September 12, 2006 and directed the parties to file additional briefs dealing with whether the check at issue qualified as a negotiable instrument. For the reasons stated below, the 1 Case 06-40087-JJR Doc 31 Filed 10/26/06 Entered 10/26/06 08:56:27 Document Page 1 of 10 Desc Main Court finds the motion for summary judgment is due to be GRANTED. Background On April 15, 2006, the plaintiff received a “payday loan” for $500.00 from the defendant. In exchange for the $500.00 loan, the plaintiff gave the defendant a check for $587.50, which was intended to pay the principal of the loan plus interest and fees. The defendant agreed to hold the check until April 29, 2006. On May 9, 2006, the debtor-plaintiff filed for Chapter 13 bankruptcy relief. For purposes of this summary...
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...another for the past 3,000 years. They offer services similar to those of modern banking institutions including loans, consignments, and storage. A good pawn broker buys items for a reasonable price and sells them at a discount. The pawn industry is about making money, and that means repeat business and reasonable dealings. A good pawnshop will carry a variety of items including jewelry, tools, antiques, furniture, knives, guns, crossbows, camping gear, and everything and anything you could imagine being of value and sellable. Some pawn shops even buy and sell cars, motorcycles, and aircraft. In the Philippines Pawnshop Operation is guided/ covered by Presidential Decree No. 114 Sec. 1-2 as: This decree may be cited as the Pawnshop Regulation Act, which stipulated according to that: “ It is hereby declared the policy of the State to regulate the establishment of pawnshops and to place their operation on a sound and stable basis to derive the optimum advantages from them as an additional source of credit; to prevent and mitigate, as far as practicable, practices prejudicial to public interest; and to lay down the minimum requirements and standards under which they may be established and do business...” The word "pawn" comes from the Latin word "pignus," which means to pledge. When someone has an item of worth on which they would like to receive a monetary loan, they take that item to a broker who receives it as a pledge (aka collateral or pawn) in exchange for money. A pawn...
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...CONSULTANT REPORT FOR CASH MONEY CHEQUE CASHING INC. PRINCE ATTAKORA-OFORI 3448366 mba 7511: MANAGEMENT SKILLS DEVELOPMENT 1 SECTION 2 TANYA CHAPMAN MARCH 12, 2014 Contents Abstract 3 Introduction 3 Literature Review 4 Good People 5 Attracting Good People 5 Retaining Good People 6 Developing Good People 7 Application in the work environment 7 Cash Money Cheque Cashing Inc. 8 A Tradition of Excellence 8 The Cash Money Promise 8 What is a payday loan and who uses it? 9 What Cash Money Employees Are Afraid Of ….. 9 Implementation Plan 10 Reference………………………………………………………………………………………………………………………………………………………………………….. 17 Abstract Good people are hard to find, the saying goes. "Without loyal, dedicated, competent workers, no company can satisfy the expectations of its customers - internal or external. Employee retention to build a stable, productive workforce will be the competitive advantage in this decade." (Roger Herman, 2014). Attracting and keeping good people has become a challenge for a lot of companies. One would think that changing jobs during economic down times is difficult but the fact is that good people will always find jobs during strong or weak economy. Both business leaders and senior managers agree that it is becoming increasingly difficult to keep good people as employees seek greater mobility in the market place (Sexton, G., 2007). This report looks at attracting, keeping and developing good people in Cash Money Cheque...
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...Communities Creating OPPORTUNITY NOW Agenda—October 18th, 2011, 6:30pm to 8:15pm Yellow highlight=needs revision or update Magenta highlight=program team help cue the audience to participate through applause, sign waving, cheers, standing Red means this is a pin question—commitment question we are asking to those present in the audience or our elected officials or civic leaders. Green highlight means we will reinforce this point with a power point slide or graph. 6:00 pm God's Power Band will provide transition music. They will also perform one solo song midway during the program. 6:10 pm Come Together Choirs Start: 1. Congregation/Choir name: Our Lady of Peace Catholic Song selection: "Con Fe" (5min) Number of people in choir: 12-15 2. Congregation/Choir name: St. Peter CME - Song selection: "Let the Glory of the Lord Rise Among Us" (5min) Number of people in choir: 12-15 3. Congregation/Choir name: Ander's Choir Song selection: "STILL NEED SONG TITLE"? (5min) Number of people in choir: 6 6:30pm Logistics & Recognition of I AM exhibit: (Co-Chairs) * REV. JOHNSON: Welcome, as you are finding your seats, please make sure you have signed in, have an Opportunity Now sticker! Restrooms can be found in the main lobby to the right. Make sure to turn your cell phones off. Translation headsets are available. * ORLANDO GALLARD0: Tenemos equipos de traduccion en la mesa de registracion...
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...PHILIPPINE SCHOOL OF BUSINESS ADMINISTRATION, Q.C. 1029-Aurora Blvd. Cubao, Q.C. Selected Pawnshop Businesses along Sumulong Highway, Marikina City: Factors of Success Submitted by: Leira Susana Arceo Escala Charmaine Santos Tesalona Mariel Navata Nieto John Michael Temporal Soria Ralf Louise Sauro Vico Submitted to: Dr. Carolina D. Ditan Table of Contents Title Page Acknowledgement List of Tables List of figures Chapter I Introduction Background of the study Theoretical Framework Research Paradigm Statement of the Problem Hypotheses of the Study Significance of the Study Scope and Delimitations Definition of Terms Chapter II Review of Related Literature Foreign Literature and Studies Local Literature and Studies Chapter III Research Methodology Research Design Sampling Design Research Instrument Data Gathering Procedure Statistical Treatment Chapter IV Presentation, Interpretation and Analysis of Data Chapter V Conclusion and Recommendations Summary Conclusion Recommendation Bibliography Appendix Appendix I. Letter to the respondents Appendix II-A. Questionnaire for customers Appendix II-B. Questionnaire for employee/staff ...
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...you want? They offer books, clothes, electronics, household goods, toys and many more. Yes a lot do appeal to me there are goods for all ages and interests. Im not sure what a fair exchange would be, it would have to depend of what sort of food you were getting and how much of it. 4. Is there a listing asking for something you have to exchange? Im not sure if there is one then it is easily found. 5. Why do you think there is a membership charge? There is probably a charge because your continuously using their services. 6. What do the organisers try to ensure that people use the site honestly? By providing photographs and illustrations of your work. Wonga 1. What is Wonga? Wonga is a British Payday loan company. 2. What is the FCA? The FCA is the financial conduct authority. 3. Do you think that this article has affected Wonga’s amount of customers and why? Yes because it makes customers think can they trust this company to help them and give them a lawyer who is actually qualified. 4. In your opinion is Wonga an ethical business and why? No because In my opinion I don’t think they provide a good quality service to their...
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...significance of the study and definition of terms. Background of the Study Too many people are in difficulty today due to economic or unstable economy people may find an alternative way to find a solution to their problems, many of them go to the houses of the creditors owing money to be able to meet their needs even in a small amount, but sometimes they cannot borrow money because they have not paid their first loan. So, people will go to other areas to take instant cash. Some will apply a bank loan, and wait for an answer only to be able told that they are denied. That’s why people will go to their local pawnshop for much need help. Pawnshop brokers are seeing people from all walks of life pawning everything that has value that will put the cash they desperately need in their hands when they need it. (www.business.whatitcosts.com) 1 1 Pawnshop is a store which offers loans in exchange for personal property as equivalent collateral if the loan is repaid in the contractually agreed time frame, the collateral may be repurchased at its initial price plus interest. If the loan cannot be repaid on time, the collateral may be liquidated by the pawn shop through a pawnbroker or secondhand dealer through sales to customers. (http://www.businessdictionary.com) As a result, the researchers choose to study this kind of business to understand the needs of the people within the community of General Santos City. This serves as an opportunity to the business to cater the needs and wants of...
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...Pawnshops, like Central Texas Gun & Pawn in Kerrville, Texas are helpful and friendly community resources. In fact, you’ll find that working with a pawnbroker to secure some quick cash can be easy and professional, especially if you have desirable products to pawn like jewelry, guns, and other firearms. If you’re in a financial bind and looking for a little quick cash, here are the basics on pawn loans from the experienced pawnbroker at Central Texas Gun & Pawn: Securing Your Pawn Loan: A pawnbroker offers a collateral-based loan to customers. In essence, your cash loan is secured by leaving an item of value at the pawnshop like jewelry, guns, firearms, or electronics. The pawnbroker will hold onto your item until you pay back the loan in...
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...Introduction It is said that Pawnbroking is the oldest source of credit. (Caskey, 1994) Pawnshop loans are small, short-term, collateralized loans typically used by low-income consumers. Despite their small principal, however, pawnshop loans are an important tool that many customers use to manage their monthly finances during financial shortfalls. (Carter and Skiba, 2012) In the Philippines, Pawnshop is one of the financial service providers (FSP) that are helping to increase the access to financial services of underserved and unserved. For many Filipinos, pawning is the most convenient way to raise money, easier than securing a bank loan. In the Bangko Sentral ng Pilipinas Report on the State of the Financial Inclusion in the Philippines in 2011, the Banking sector is accounted for more than 80 percent of the total resources of the financial system. This means that the 20 percent are shared by other service providers such as pawnshops, money changers, remittance agents and FX dealers. Some municipalities in the Philippines have no banking presence but have access to pawnshops. While pawnbroking is the main business activity of pawnshops, nowadays many pawnshops are engaging into other auxiliary businesses such as money changing, remittance facilitation, foreign exchange dealership, and bills payment facilitation. Moreover, few pawnshops are offering cash in-cash out centers and offer mobile banking services. Financial economists have produced a large number of theoretical...
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