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By Mitchell Schnurman

mschnurman@star-telegram.com

If Texas wont fix payday lending, will Washington? Or how about better-informed customers?

Consumer advocates have long pushed to rein in these high-cost loans that target the working poor. About 10 percent of Texas residents take out small cash advances, using future paychecks as collateral. But many roll over the loans and are overwhelmed by big fees. Some relief agencies have said that the loans forced many clients to seek their help.

Separate developments last week — one in Texas, the other in Washington — signal that improvements are coming. The 2011 Legislature enacted several changes that took effect this month. They include plain-language disclosures about the costs and risks of the loans, new licensing standards and a help-line number to the Consumer Credit Commissioner. New data collection requirements will show how often loans are renewed.

The loan form is a far cry from the usual fine print on such documents. It warns, in a clear graphic, that 4 in 10 people with a payday loan renew it five or more times. A chart puts the interest rate on a payday loan at 450 to 700 percent, and compares it with credit cards (16 percent), secured loans (28 percent) and pawn loans (180 percent).

The form says to ask yourself: Can I afford to pay this loan back in full in two weeks? Can I afford the extra charges, interest and fees if I miss the payment?

Consumer groups wanted more significant reforms, including fee caps and rollover limits to stop the cycle of debt that can trap borrowers. Some said the changes were little more than window dressing. In my view, the new rules are important steps in the right direction.

If the problem with payday loans is transparency and full disclosure — in effect, that consumers are being tricked into these products — thats been well addressed. A year from now, the data will also give advocates more leverage, just in time for the next Legislature.

And all this puts the industry, which has a heavy presence in Tarrant County and Texas, in a better position if a federal standard is created. Texas may never join the 17 states that tightly limit fees and interest on payday loans, but its making progress. That could be a handy narrative as the Consumer Financial Protection Bureau gears up in Washington and takes a close look at the business.

Last week, President Barack Obama named Richard Cordray to be the agencys first director. The recess appointment created a political controversy, because Obama sidestepped Senate Republicans, who continue to say the agency needs more oversight.

Cordray is moving ahead all the same, aiming to help consumers. In his first-day remarks, he cited several complaints from citizens, including a Louisiana woman whose payday loan had become exorbitantly expensive.

Mary simply wanted a reasonable chance to repay, Cordray said. Instead, the payday lender told her that her only option was to file for bankruptcy.

Payday lenders often make headlines, because rollovers multiply the fees, and some desperate customers can never pay them off. But theres no doubt about the demand. Some 20 million American households use payday lenders, and they pay roughly $7.4 billion in fees annually, Cordray said. Cash America, which is based in Fort Worth, reported almost $419 million in consumer loan fees for the first nine months of 2011. Thats a healthy 16.5 percent increase in the past year.

Cordray hasnt said how the agency will approach payday lenders, and he deflected questions about requiring changes in their financial products. Thats the million-dollar question: whether federal regulators will limit loan rollovers, set income guidelines for borrowers or require that a portion of each payment go to reducing the principal.

The bureau now oversees so-called nonbank lenders, but its prohibited from setting interest rate caps. With its ability to make new rules, however, it could shake up the industry and institute important consumer protections.

Many states already take a hard line on payday loans. Georgia prohibits them, and New York and New Jersey limit annual interest charges to 25 percent and 30 percent, respectively, according to the Consumer Federation of America. Ohio voters capped loan rates at 28 percent, and Montana and New Hampshire have 36 percent caps, the federation says.

In 2006, Congress set a 36 percent maximum on payday loans for members of the military, because the small, high-interest loans were destabilizing military families.

Last year, activists in Texas pushed the Legislature to cap fees and interest. They also wanted limits on loan renewals and the amount that could be borrowed. Those proposals didnt get off the House floor, but theyre likely to be introduced again next year.

Texas has been behind the curve on environmental rules and healthcare, so leaders have been clashing repeatedly with the feds. But on payday lending, lawmakers made some important pre-emptive moves.

And if they didnt go far enough, theres always next year.

Mitchell Schnurmans column appears Sundays and Thursdays.

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Twitter: @mitchschnurman

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Cash Cow Advances is a leading nationwide service provider of cash advances and payday loans.

Recently, people around the country started to receive unexpected checks from the Foreign Currency Fee Litigation Settlement Fund. Many skeptical recipients wanted to know if these checks were real or part of some kind of scam.

It turns out these payments are the result of the settlement of a class-action lawsuit regarding the improper disclosure of credit card foreign transaction fees and the artificial inflation of exchange rates. Although the deadline has passed to claim your portion of the settlement, its not too late to learn about foreign transaction fees and how to avoid themWhats a foreign transaction fee?

This is a fee charged on a credit purchase processed outside the United States. Its not a currency conversion fee, since it applies even when overseas transactions are conducting in US dollars.

These fees can even apply to transactions made from home – but processed by a foreign merchant such as an overseas airline. When these fees apply, theyre usually between 2 and 3 percent of the purchase price. Since credit card issuers receive the most favorable interbank exchange rates, the courts have held that these fees are nearly pure profit for the task of performing simple arithmetic.Steering clear of these fees

Although the authors of the CARD Act of 2009 chose not to regulate or eliminate these fees, the free market is finally starting to. As consumers learn about these unnecessary charges, more products are waiving this fee and more banks are eliminating it on all of their cards.

Therefore, the easiest way to avoid these fees is to use one from the growing list of cards that are fee-free. Capital One deserves credit for being the first major bank to eliminate these fees on all of their cards. This year, PenFed and Discover also removed foreign transaction fees from all of their cards. Chase eliminated these fees on many of its cards marketed to travelers such as their British Airways and Sapphire Preferred cards.

American Express waives this charge for its Platinum Card holders but it still charges a 2.7 percent foreign transaction fee on its lesser products.Other tips

1. Watch out for foreign processors. Be extra-careful placing orders from overseas companies, since these charges could apply to goods and services purchased from home. If in doubt, use a fee-free card if you have one.

2. Ask for a waiver. If you do get stuck with foreign transaction fees after your next trip over the border, you might be able to have them forgiven. As with most fees, cardholders in good standing are often successful when they simply call their bank to ask for the fees to be waived. Your bank may be surprisingly willing to do so, since it didnt incur any direct cost and it wants to keep you from moving your business to a competitor.

3. Never use your credit card to withdraw cash. Foreign transaction fees are onerous, but they pale in comparison to the costs of cash withdrawals. These transactions usually incur a cash advance fee, and a higher interest rate is applied immediately with no grace period. Worse, even cash advances are often subject to the same foreign transaction fees as purchases!
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Cash Cow Advances is a leading nationwide service provider of online cash advances and payday loans.

Online Marketing Leader Partners with Merchant Cash Advance Company to Provide Access to Working Capital with Merchant Cash Advances
New partnership between 180Fusion, LLC and Merchant Cash and Capital, LLC strives to help business owners with access to working capital and merchant cash advances.

Cash Cow Advances is a leading nationwide service provider of online cash advances and payday loans.

NEW YORK–(EON: Enhanced Online News)–AmeriMerchant (http://www.amerimerchant.com),
one of the oldest and largest providers of merchant cash advances in the
marketplace, is celebrating its ten year anniversary. Since being
founded in 2002 by President and Chief Executive Officer David Goldin,
the company has grown to over one hundred employees and has provided
hundreds of millions of dollars in working capital to all types of
businesses in various industries. AmeriMerchant continues to provide
much needed working capital to small businesses nationwide through its
alternative working capital products including its merchant cash advance
program.

While many similar companies have closed their doors in the recessionary
climate of the last few years, AmeriMerchant has reached this exciting
milestone with new and revolutionary programs aimed at helping merchants
receive the money they need to continue to grow their businesses.

During these challenging economic times, AmeriMerchant’s proprietary
underwriting and technology platform has allowed it to deploy unsecured
working capital to businesses in an economic climate where business
lending is at an all-time low. This same platform has demonstrated time
and time again that AmeriMerchant is helping merchants today by offering
a default rate lower than many secured business credit products as well
as AmeriMerchant’s extremely high customer renewal rate for additional
capital.

“We are very excited to announce our ten year anniversary at
AmeriMerchant. In today’s economy, our alternative working capital is
needed more than ever by businesses as it is still very challenging for
them to secure the money they need through traditional sources. And I
want to thank all our merchants, employees and business partners, for
without them, we wouldn’t be the company we are today,” says David
Goldin, President and CEO of AmeriMerchant.

About AmeriMerchant

Founded in 2002, AmeriMerchant is one of the nation’s oldest and largest
providers of working capital to merchants against their future
credit/debit card sales, commonly known as a merchant cash advance.
Through its sister company CanaFunding, the company also provides
merchant cash advances to Canadian businesses. AmeriMerchant is
committed to industry best practices and is a founding member of the
North American Merchant Advance Association. For additional information
about AmeriMerchant visit www.amerimerchant.com
or call 800-267-3790.

Cash Cow Advances is a leading nationwide service provider of online cash advances and payday loans.

GRAND FALLS, NB – Potato farmers in New Brunswick have been granted an extension on when they must repay cash advances under a federal program.

Agriculture Canada says potato farmers have until Dec. 31 to repay advances made for the 2011 crop year following a poor growing season.

New Brunswick MP Mike Allen says the provinces potato producers have worked hard to recover from cold and wet conditions that have severely reduced their crop yields.

Allen, who represents the rural riding of Tobique-Mactaquac, says it has been a difficult time for the industry.

Cash Cow Advances is a leading nationwide service provider of online cash advances and payday loans.

Los Angeles, CA — (SBWIRE) — 01/12/2012 — While the present state of the economy continues to be unsettled, many consumers are availing themselves of cash advances, also known as payday loans, in order to meet their most pressing financial needs. To help consumers protect themselves from predatory lenders, CashAdvance.com has created the Washington Consumer Protection page, as well as similar pages for every state in the union.

“CashAdvance.com strives continually to ensure consumer protection by providing the knowledge and resources necessary for consumers to make informed financial decisions,” says CashAdvance.com spokesperson Hanna Wellman. “The Consumer Resource pages are a wealth of information arming consumers with the resources with which they can actively preserve their rights and providing recourse to regulatory agencies capable of remedying fraudulent lending practices.”

Payday lending is legal in the state of Washington; however, Washington does impose regulations on the practice of cash advances. The maximum loan value is capped at $700; the loan terms length is limited to 31 – 45 days; lenders are not allowed to offer roll-overs to borrowers; and lenders may not charge more than 15 percent on loans up to $500 and no more than 10 percent on loans from $501 to $700.

CashAdvace.com’s Washington Consumer Protection page provides additional contact information for state consumer agencies and further information on these short-term loans, their providers, and the terms and conditions that accompany them.

According to leading CashAdvance.com financial news expert Adam Hilliard, Our Washington Consumer Protection page will dispel any misconceptions or uncertainty surrounding the cash advance process in Washington, equip you with practical advice for averting financial crisis, answer your myriad loan questions, and ultimately guide you on the road to taking control of your financial future.

Cash Cow Advances is a leading nationwide service provider of online cash advances and payday loans.

When you are just starting your adult life, it is very important that you make the right financial decisions. Too many people go out into the real world without the proper financial education, and without this education, they end up making decisions that affect the rest of their lives.

Overspending on everyday shopping trips, overusing credit cards, and taking out payday loans are just a few of the many common mistakes these young adults make, and they are also mistakes you should avoid. For now, I would like to inform you about the dangers of payday loans specifically and some of the alternative choices you have when you think you need a payday loan.

What is a Payday Loan?

Payday loans, also called cash advances or paycheck advances, are short-term loans (usually about two weeks) that you must repay by the time you get your next paycheck. The lender will charge you a fee plus interest on the amount you borrow, and loan you the money you need. These types of lenders usually dont require a full credit check, which is why they are so popular with those who have bad credit and a low income. This means that the lender is taking a very large risk when they lend money, which is why payday loans have such high interest rates.

Disadvantages of Payday Loans

Some states have a limit as to how high the annual percentage rate (APR) on these loans can get, and some states dont allow these types of loans at all. However, some states dont restrict payday lenders, and the APR could be anywhere from 300% to 900% in some cases. Even credit cards have a better APR than this. While this may be a very easy way to get cash fast, you should be very careful because some people who take out a payday loan could end up paying more in interest than they originally had to borrow in the first place.

When a person takes out a payday loan, they write a check for the amount borrowed plus a fee that will be cashed by the lender on their next payday. If they arent able to repay the loan at that time, they can roll over the loan to repay it on the following payday. This is where so many people get into trouble. They continue to roll over the loan because they are unable to get by on what is left over from their paycheck, so the loan amount continues to grow with interest. This vicious cycle continues until the person is forced to take out another payday loan to pay off the first payday loan. This process leads to more debt than the persona can handle, and some are forced to go bankrupt because of their decision to take out a payday loan.

Payday loans dont help solve the underlying problem that has lead borrowers to their financial state. It simply puts a Band-Aid on the gaping wound that is their financial situation. Instead of making this horrible decision that could affect you for the rest of your life, you should change your financial habits and make better choices for your financial future.

Alternatives to Payday Loans

There are many lower interest alternatives to payday loans. The following are just a few.

• Credit union loans Your local credit union may offer small, short-term loans to members.
• Small bank loans Some small banks offer alternatives to those looking into payday loans.
• Advances from employers Ask your employer for a paycheck advance instead of going to a payday lender who will charge interest.
• Borrowing from family and friends Dont let your pride keep you from making the right financial choices, but also make sure you put down in writing exactly what each of you expect from this loan. You dont want money to ruin a friendship or a family relationship.
• Build up and emergency fund Every household should have at least six months worth of expenses saved up in an emergency fund for those tough financial times. If you dont have any savings now, find a way to save this money so you can avoid having to take out a payday loan in the future.
• Use your credit cards only for emergencies If you always have the option to use your credit card, you wont have to worry about taking out a payday loan. Only use your card for emergencies or when you know you will be able to pay off the balance immediately. Not only will you avoid payday loans, but you will also be able to maintain a good credit score, which will help you in the future.

Photo Credit: B Rosen

Cash Cow Advances is a leading nationwide service provider of cash advances and payday loans.

In any form of emergency it is always a relief to know there are remedies available to you. This applies in any situation including those of a financial nature. There are many types of emergencies that require an immediate cash advance to resolve. This could be medical related, or automobile, or to help a relative or friend.

Online cash advances are a quick and simple means of obtaining money for an emergency. The easy completion of an online application form, with details of your regular salary and an active bank account, are all you need to have the cash, usually within 24 hours. It is a usual condition that your credit history will not be considered a factor and will not influence your obtaining a loan.

It is not always easy for anyone to obtain virtually instant cash. Therefore to avoid the frustration, which can lead to desperation of trying to get money from different sources is prevented with payday loans. Attempting to obtain a loan from a bank, especially in an emergency is a challenging task, particularly if your credit score is in doubt.

Payday loans are recognized options for those in need of fast cash, for an emergency, no matter the reason. However, borrowers must be aware that due to the nature of the loan, the interest charged will be a significant and is a factor of which you must be aware when completing the application. Adding to this, there will be penalties impose by the lender, should you not discharge the full amount of the loan by the due date. Again, you must be aware of the consequences before committing yourself.

Online cash advances when needed, are a solution for anyone. They can provide the means to ending effectively an emergency situation.

Cash Cow Advances is a leading nationwide service provider of cash advances and payday loans.

PressMediaWire.com (Press Release Distribution) – Jan 13,2012 –

Difficult economic conditions and urgent expenses drive many people to searching fast and professional financial assistance. Trustworthy and time-tested lenders cooperating with Cash Advances US offer a great solution for people in immediate need of additional funds. Online cash advance is an option available almost for any consumer looking for monetary support. The company operates on the Internet and thus provides quick overnight money transfers and instant approval on loan requests as well as simple, speedy application procedure with no teletrack or faxing of personal documents.

Cash advance loans offered by the online lending company are usually used as a bridge between paydays. There is no secret that people sometimes find it difficult to manage their monthly expenses properly being often confused by unforeseen bills and urgent payments. In such cases it would be great to get instant financial help in a form of payday cash advance and the company can definitely become useful performing perfect service that is available round-the-clock. The website belonging to this payday lending agency can be accessed at any time and the application form is meant to be fulfilled totally online.

Instant guaranteed approval on applications help people save their time. Besides, the process held through CashAdvancesUS.com is fast and secure. The customers applying for advance loans shouldnt worry about the privacy of their personal and financial information as the company uses a reliable system that ensures secured data transaction.

It is doubtless that people with bad credit history usually have almost no opportunity to use lending services. They are considered as the borrowers of high risk, therefore lenders are not willing to approve their applications. Despite the fact that credit score is an important factor that defines the individuals creditworthiness, cash advance lenders cooperating with the company do no credit check and accept applications even from consumers with damaged credit report.

In fact, the Cash Advances US company really cares about its clients and tries to do its best to provide perfect service every customer deserves. The procedure is simplified as much as possible in order to make it easy for common people to apply for fast cash advance loans online with least formalities involved.

Cash Cow Advances is a leading nationwide service provider of online cash advances and payday loans.

Los Angeles, CA — (SBWIRE) — 01/13/2012 — While today’s economy remains unstable and unpredictable, more consumers are turning to payday loans as a means to meet their most pressing financial obligations. To help consumers protect themselves from fly-by-night lenders and scam artists, CashAdvance.com announces the launch of its new Virginia Consumer Protection page, as well as similar pages for every state in the union, to help consumers stay properly equipped to identify and avoid fraudulent lending sites.

“CashAdvance.com strives continually to ensure consumer protection by providing the knowledge and resources necessary for consumers to make informed financial decisions,” says CashAdvance.com spokesperson Hanna Wellman. “The Consumer Resource pages are a wealth of information arming consumers with the resources with which they can actively preserve their rights and providing recourse to regulatory agencies capable of remedying fraudulent lending practices.”

Payday lending is legal in the state of Virginia; however, Virginia does impose regulations on the practice of cash advances. The maximum loan value is capped at $500, and the maximum period for the loan is 14 days. Interest rates are capped at 36 percent, finance fees at 20 percent per $100, and there is also a verification fee of $5. The lender may determine other fees consumers may incur, such as late fees.

There are other restrictions and obligations that Virginia state law imposes, both for lenders and borrowers. CashAdvance.com’s Virginia Consumer Protection page has further information on these short-term loans, their providers, and the terms and conditions that accompany them.

According to leading CashAdvance.com financial news expert Adam Hilliard, Our Virginia Consumer Protection page will dispel any misconceptions or uncertainty surrounding the cash advance process in Virginia, equip you with practical advice for averting financial crisis, answer your myriad loan questions, and ultimately guide you on the road to taking control of your financial future.

Cash Cow Advances is a leading nationwide service provider of online cash advances and payday loans.