helping parents to choose appropriate financial service ... · what you should know about...
TRANSCRIPT
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Financial Conversations Session 2DEVIN STUBBLEFIELD, FINANCIAL COACH/TRAINER
Helping Parents to Choose Appropriate
Financial Service Providers
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Topics Discussion
What You Should Know
about Neighborhood
Financial Services
Working with Banks and
Credit Unions
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Part 1
Neighborhood
Financial
Services
BEWARE OF PREDATORY
LOANS AND WHAT TO DO IF
PARENTS HAVE ONE
• How to recognize scams
and predatory lending
• Pay Day Loan Guidelines
in Washington State
• Pawn Shops
• Resources
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Financial Mouse Traps
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predatory
excessive or exploitive in amount or cost,
as out of greed or to take advantage of
consumers or patrons
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scam
fraudulent scheme, especially for
making a quick profit; to cheat or
defraud
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They Try to Establish a Connection
They make it seem as if they are Credible
They Play on Emotion
Characteristics of Scam Artists
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Common Scams
Overpayment and Fake
Check Scams
Emergency Scams
Employment Scams
Sweepstakes & Lottery
Scams
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http://myidaproject.org/scam-alert-9-84-charges-to-
your-account-may-be-bogus/
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1-Ring Cell Phone
Missed Calls
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DO NOT ANSWER OR CALL NUMBERS
FROM THESE AREA CODES
268, 284, 473, 664, 649
767, 809, 829, 849, 876
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Scams Watch List
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Report Scams
Washington State Attorney General
1125 Washington St SE
Olympia, WA 98501
360.753.6200
www.atg.wa.gov
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Questions & AnswersScams
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Payday Lenders
Check Cashers
Pawn Shops
Outside of the
Main Stream
Financial
Institutions
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Case Study
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Maria’s Payday Loan
$80 in total fees
for a $200 loan!
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Washington
State payday
lending
consumer
protection laws
may not apply
to loans
received
through Internet
applications.
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Tips to Share with Parents
Verify the license of a payday lender in Washington State by calling 1-877-RING-DFI (746-4334) or verifying a license online at https://fortress.wa.gov/dfi/licenselu/dfi/licenseLU/.
Read the fine print in any and all documents/terms of agreement you are asked to sign/agree to
NEVER sign or agree to anything you don’t understand
Consider Alternative Solutions
Comparison Shop for the lowest fees and penalties. For example, some credit unions offer payday loans with lower fees.
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Borrow Only What You Can Afford To Pay Back
Know When Your Payment Is Due
Take Advantage Of Organizations That Are Available To Help You With Your Financial Situation.
Locate Your Local Asset Building Coalition at http://www.washingtonabc.org/node/29
Develop A Budget Plan
Tips to Share with Parents
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"CONVENIENT BUT COSTLY"
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Check Cashers
Conveniently located within neighborhood communities
Open late into the evening during the week
Higher Fees for check cashing and check casher debit card
May charge up to 5% of the amount of check
No record of banking with a check casher
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Pawn Shops"SHORT TERM LOAN BROKER"
...THAT WANTS YOUR STUFF
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The Way it Works
You need money
You pledge your stuff
You get some money at a
% of the value of your stuff
You pay back the money in
90 days + the fees (interest)
What if you are unable to
pay it back or renew?
You forfeit your stuff
The money is gone!
You have lost twice…
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stopthedebttrap.org
responsiblelending.org
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Other Resources
www.consumerfinance.gov
To make markets for consumer financial products and services
work for Americans — whether they are applying for a
mortgage, choosing among credit cards, or using any number of
other consumer financial products.
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Other Resources
The federal government’s website to help you be safe, secure
and responsible online.
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Questions & AnswersAlternative Financial Services
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Part 2
Working with
Banks and
Credit Unions
FINANCIAL PARTNERSHIPS
THAT WORK
• Bank of Washington
• Getting a Fresh Start in
Banking
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Distinctions
Unbanked: No checking or savings account.
Underbanked: Has an account, but continues to rely on
alternative financial services, like check-cashing services,
payday loans, rent-to-own agreements or pawn shops.
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bankonwashington.org
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Barriers to
Bankinghttps://www.consumerdebit.com
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Pay attention
to the reasons
why they were
reported to
ChexSystems.
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Comparison Chart for Getting a Fresh Start
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Questions & AnswersBank On Programs
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Financial ConversationsDEVIN STUBBLEFIELD, FINANCIAL COACH/TRAINER
Thank You!