financial predatory practicesoregonidainitiative.org/wp-content/uploads/2013/05/asset... · 2016....
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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
Division of Finance and Corporate Securities
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What we do
Division of Finance and Corporate Securities
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Submitting a complaint
Division of Finance and Corporate Securities
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License orRegistration
1-866-814-9710
www.dfcs.oregon.gov
Check and Verify
Division of Finance and Corporate Securities
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Debt Management Companies
Assist with: • Debt • Credit repair • Loan modification• Bankruptcy (how to)• Financial education
Division of Finance and Corporate Securities
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Allowable Fees
Maximum counseling, agreement fee: $50
Maximum monthly fee: $65
7.5% charge = total amount of reduceddebt (debt settlement, loan mods, shortsale)
Division of Finance and Corporate Securities
Loan Modifications
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Similar fee structure
Free Help: HUD-certified foreclosure counselors
1-800-SAFENETwww.foreclosurehelp.oregon.gov
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Division of Finance and Corporate Securities
Red FlagsDebt Management
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• Settling for "pennies on the dollar"
• No adverse affect on credit ratings
• Don’t pay creditors
• Upfront fees
Division of Finance and Corporate Securities
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Red FlagsLoan Modification
• Stop making mortgage payments
• Mortgage payment to hired company
• Ads, mailings similar to government
• Performs “forensic audit”
Division of Finance and Corporate Securities
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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
Division of Finance and Corporate Securities
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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
Division of Finance and Corporate Securities
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Actual rates charged
343%
950%
800%
2737%90%
Division of Finance and Corporate Securities
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, fees
Division of Finance and Corporate Securities
Legal Consumer Loan Rates
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36% annual percentage rate (APR)
No origination fees
No “bump up” to higher rate
Division of Finance and Corporate Securities
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Predatory Tactics
Get cash now!
No credit check!
Bad credit? No problem!
Division of Finance and Corporate Securities
Identity Theft Tactics
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Division of Finance and Corporate Securities
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License
1-866-814-9710
www.dfcs.oregon.gov
Check and Verify
Division of Finance and Corporate Securities
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Cease-and-Desist
• $17,500 penalty• Stop collection activity
• No license• Excessive interest rates: 89% - 342%
Division of Finance and Corporate Securities
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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
Division of Finance and Corporate Securities
More Information
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www.dfcs.oregon.gov1-866-814-9710