Jeopardizing Hispanic Homeownership: Predatory Practices in the Homebuying Market
Financial Predatory Practices
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Transcript of Financial Predatory Practices
Division of Finance and Corporate Securities
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Financial Predatory Practices
Diane ChildsFinancial Information Outreach Coordinator
Division of Finance and Corporate Securities
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Our Programs Debt Management Lending – Payday &
Consumer Finance
Financial Institutions Pre Need Money Transmitters Securities Pawnshops
Mortgage Lenders Identity Theft
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What we do
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Submitting a complaint
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License or Registration
1-866-814-9710
www.dfcs.oregon.gov
Check and Verify
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Debt Management CompaniesAssist with:
• Debt • Credit repair • Loan modification• Bankruptcy (how to)• Financial education
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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)
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Loan Modifications
Similar fee structure
Free Help: HUD-certified foreclosure counselors
1-800-SAFENETwww.foreclosurehelp.oregon.gov
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Red FlagsDebt Management
• Settling for "pennies on the dollar"
• No adverse affect on credit ratings • Don’t pay creditors
• Upfront fees
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Red FlagsLoan Modification
• Stop making mortgage payments
• Mortgage payment to hired company
• Ads, mailings similar to government
• Performs “forensic audit”
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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 Flags
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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 Office
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Actual rates charged
343%
950%
800%2737
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90%
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Legal Payday Loan Rates 36% annual percentage rate
(APR)*
One time origination fee No renewal fees
Restrictions on additional loans
*Interest, Fees – 154% if lender charges maximum rate, fees
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Legal Consumer Loan Rates
36% annual percentage rate (APR)
No origination fees
No “bump up” to higher rate
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Predatory Tactics
Get cash now!
No credit check!
Bad credit? No problem!
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Identity Theft Tactics
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License
1-866-814-9710
www.dfcs.oregon.gov
Check and Verify
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Cease-and-Desist
• $17,500 penalty• Stop collection activity
• No license• Excessive interest rates: 89% -
342%
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Check License or Registration
Know legal fees, charges, interest rates
Contact us:
Check and Verify
1-866-814-9710
www.dfcs.oregon.gov
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More Information
www.dfcs.oregon.gov
1-866-814-9710