Tag Archives: consumer banking


Posted 11 months ago in Your Money & The Law by Janet Raasch  
Payday Loans Prey on the Vulnerable

Financially-strapped individuals turn to payday loans when they need cash between paychecks and have exhausted every other option. These borrowers are rarely eligible for other kinds of credit, and don’t want to borrow from family and friends. Each year, about 12 million borrowers take out payday loans. The U.S. Consumer Financial Protection Bureau calls payday loans “debt traps.” Research shows that they often push low-income borrowers off the financial cliff, into bankruptcy or default. Only about 14 percent of borrowers …

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JPMorgan Chase Pays $18.3M for Misleading Mortgage Info

JPMorgan Chase & Co. has agreed to pay $18.3 million to settle a lawsuit accusing the lender of misleading homeowners about interest rates on adjustable rate mortgages. The lawsuit, filed in 2007, alleged that JPMorgan Chase and lending units of Bear Stearns misled consumers by failing to tell them that their loan’s principal would increase if they made the minimum monthly payment. The class action was filed in 2007, and J.P. Morgan acquired the loans when it took over EMC …

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Posted 1 year ago in Banking Law by Janet Raasch  
Is Overdraft Coverage on Your Bank Account Worth the Fees?

If you’re not careful, the cup of coffee that you buy with your debit card can cost you close to $40. If you then buy a newspaper and a sandwich (in separate transactions), each of those items can cost you an additional $35. Picking up these three low-cost items on your way to work on a day that your account is empty can quickly rack up $105 in overdraft fees. How does this happen?  Many banks encourage their checking account …

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Posted 2 years ago in Banking Law Real Estate by Michele Bowman  
Walmart Mortgages Coming Soon to Aisle 10

You buy toilet paper and ammo there, so why not a home? Consumers are indicating they would trust Walmart and other non-banks with their mortgages, and some experts believe that’s not necessarily a bad thing. While they seem mostly satisfied with the services of the big banks, “continued frustrations with current mortgage processes . . . could drive consumers to alternative home loan providers,” according to a recent survey by a consulting firm whose clients include some of the largest …

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Posted 2 years ago in Consumer Law Creditor/Debtor by Janet Raasch  
Alternative Financing Services Growing in Popularity

Alternative Financial Services (AFS) businesses are a major source of banking and credit services for the un- and under-banked,  low-income and working poor consumers, residents of minority neighborhoods, and consumers with heavy debt burdens and less-favorable credit histories. Often, these individuals or families are thrown for a financial loop when faced with unexpected expenses and emergencies. AFS providers fall outside the system of traditional, federally insured financial institutions. They include check cashing and money order outlets, lenders and even retail …

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