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Payday Loans Stores Settling With Past Customers | Payday Loans …

Payday loans are back in the California news with San Francisco city officials looking for victims of two payday stores. The city brought a lawsuit against two payday lending stores back in 2007 and now have up to $7.5 million to return to the victims. The reimbursements could range anywhere between $20 and $1800 to repay those who were charged exorbitant and excessive fees, interest and fines.

The city is now on a search to find the claimants on the settlement. There has been a deadline set for October 1, 1012 to find the people. If you took out loan with Money Mart or Loan Mart in 2007 in San Francisco, the city will be looking for you. It is important to get the word out in order to track down as many victims as possible.

The two companies involved in the lawsuit will also have to pay the city of San Francisco $875,000.

These companies still have at least ten branches open in San Francisco, a city running second to Seattle in payday loan density. The pursuit for predatory lenders has led the city to create city-backed financial options, Bank on San Francisco and Payday Plus.

Anyone who obtained short-term payday loans from these companies in San Francisco between 2005 and 2007 are eligible to receive a portion of the settlement.

This information may apply to you, a family member, a friend, co-worker, or a member of the community. Spreading this news to the masses will get someone who knows something about one of the victims.

State regulations now prevent payday loans lenders from abusive practices:

* All payday lenders in California must be licensed by the Department of Corporations.

* Loan amount is capped at $300

* Maximum fee for your loan is 15%

* A lender cannot process a new loan to pay off an existing loan.

* A new loan cannot be processed with the same company when there is an outstanding loan due.

* Up to %15 may be charged for a returned insufficient payment. Your bank may charge additional fees.

* A payday lender may not threaten to prosecute you in order to collect on your loan.

Since 2007, these laws have changed the way payday loan lenders work. Storefront lenders and direct online payday loans lenders have had to change their practices and work within the state guidelines. Lawsuits such as the one above have happened all over the country. In fact, there are still some predatory lenders who are trying to skate by the regulations but finding themselves at the hands of the court when complaints against their practices are filed. Many states are continuously trying to add more regulations or ban payday loans all together to protect the residents’ rights. Many groups argue that banning these loans are actually taking away a borrower’s right to choose which has kept some extreme regulations from occurring. There are offshore lenders and Native American tribe based lenders who do not have to follow state regulations. Banning them altogether may limit how many people use payday loans for fast cash, but it will not get rid of all access to predatory lenders. These lenders are able to offer much higher loan amounts and will charge even higher rates. Those who are in a vulnerable financial state and who do not have other money choices, will be falling into the hands of these predatory lenders.

[…]

New payday lending bill moving in AL legislature | Times Free Press

By PHILLIP RAWLS

Associated Press

MONTGOMERY, Ala. — After years of killing bills to tighten regulations on payday loans, the legislature may agree to set up a database to make sure people don’t take out more than $500 in loans at one time.

The House Financial Services Committee voted unanimously today to approve a bill that would set up the statewide database of payday loans in the Alabama Banking Department. Businesses would have to enter information in the database each time they got ready to issue a loan. If someone already had $500 in loans, the business could not issue one exceeding that.

The bill’s sponsor, Democratic Rep. Patricia Todd of Birmingham, said Alabama has had a $500 limit, but there was no way to enforce it without a central database. She said people would go to multiple lenders and take out more than $500 in loans, trapping them in a cycle of high-interest debt.

“This will at least keep people from having multiple $500 loans,” she said.

Todd’s bill now goes to the House. She said she is optimistic about its chances because she worked out a compromise with the industry and had bipartisan support in developing the compromise.

Payday loans are short-term loans, usually for 14 to 30 days with annual interest rates that can hit 456 percent. Payday lenders say they serve a market that banks don’t want to serve, and the costs are cheaper than bouncing a check.

Todd and others have tried for several years to pass bills lowering the interest rates with no success. The bill she introduced at the start of the legislative session stalled in the Financial Services Committee, where six of the nine members had received campaign contributions from the industry or an associated political action committee. The amount ranged from $1,000 to $3,900.

Once Todd dropped the interest rate cap and focused on the database, her bill breezed through Wednesday with bipartisan support.

Gov. Robert Bentley’s Banking Department tried to use its regulatory authority to set up a database last year. The industry sued and got the database put on hold pending a trial in June. Todd’s bill would negate the lawsuit and get a database operating by early 2015.

Herb Winches, lobbyist for the 13 Check Depot stores in the Birmingham area, said the family-owned business wants to make sure small lenders have the same access as big lenders. If that is done, he said Check Depot is fine with the legislation.

“It’s going to become law, so you don’t have any choice,” he said.

Anna Pritchett, advocacy director for AARP Alabama, said the bill doesn’t do as much as the organization for older citizens wanted, but “any forward motion is good.”

Todd said she would like to give the database two years to work and then come back with additional regulatory legislation.

Todd’s bill does not affect title loans on vehicles.

[…]

Payday Lenders Sue on Defaulted Loans – How You Can Avoid Court

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By now, it’s fairly common knowledge that payday loans are expensive and dangerous. As if the interest rates and predatory terms weren’t enough to compel people to want to get out of the payday loan cycle, a recent report on payday lenders suing their borrowers is enough to concern anyone. According to the report, borrowers who default on their payday loans can be sued by their lenders with little protection from the law. Many payday lenders are doing just that.

If you’ve already borrowed money with payday loans, then this knowledge alone isn’t helpful. What you need to know is how to get out of payday loan debt now so that you can get back on track with your finances. Read on to find out how to prevent being sued and how to get out of the payday loan cycle.

Payday Lenders Suing Defaulted Borrowers

According to a report recently published by ProPublica, payday lenders actively pursue lawsuits against borrowers who go into default – to the tune of tens of thousands of lawsuits each year, per payday lender. And it’s not just the debt the borrowers are responsible for. They could also be on the hook for legal fees and further interest accrued. For borrowers already in a tight financial situation, it could be nearly impossible for them to work their way through this debt. According to ProPublica,

“High-cost loans already come with annual interest rates ranging from about 30 percent to 400 percent or more. In some states, if a suit results in a judgement – the typical outcome, the debt can then continue to accrue at a high interest rate. In Missouri, there are no limits on such rates.

Many states also allow lenders to charge borrowers for the cost of suing them, adding legal fees on top of the principal and interest they owe. Borrowers, meanwhile, are rarely represented by an attorney.”

While it can be argued that a lender would need to sue to recoup funds that were lent out, the practice of allowing these lenders to charge further interest is questionable at best. In the case of one story highlighted by ProPublica, a women who had been sued feared only sinking further into debt as, “Missouri law allowed it [the original debt] to continue growing at the original interest rate of 240 percent.” At that rate, anyone living paycheck to paycheck could easily be facing a life sentence of debt repayment.

How to Avoid a Lawsuit from Your Payday Lender

The number one way to prevent a lawsuit is to prevent default. However, that’s not always avoidable. That’s why we’re offering tips to help you whether your loans are still in good standing or if you’re already in default. As scary as this situation is, tackling it head on is the best way to prevent a lawsuit and further debt.

If your loans are still in good standing:
If your loans are still in good standing, but you fear you’re on the brink of losing control, then the time to act is now. Follow these steps to keep your loans in good standing and work towards payoff:

  1. Redo your budget – dig deep to cut back on monthly expenditures and apply that savings to your payday loans. Even a small bit of savings can make a big difference!
  2. Prioritize the payday loan over other debt – if you’re paying on other debt besides the payday loan, make sure that you apply any extra amount towards the payday loan only. By targeting this loan with the highest interest rate, you can pay it off faster and then divert those funds to your next debt account.
  3. Find ways to earn extra income – with the influx of opportunities online, you could find a way to earn extra money at home that are flexible enough to work with your current work schedule. Apply all extra funds to the loans each month.
  4. Stay in touch with your payday lender – while keeping a good relationship with your payday lender doesn’t legally prevent you from getting sued after default, it does help your case if you need them to be more flexible with you in the future by showing them your commitment to repaying the loan.

If you’re already in default:
If you’re already in default, then you can still potentially salvage the situation if you remain diligent. Here’s how:

  1. Contact your payday lender immediately – do not wait on this step. At this point you could be sued at any time so reach out to them and ask for a payment plan to get out of default.
  2. Don’t miss one payment on your payment plan – after you’ve set up a payment plan, do not pay late or miss any payments. This history of paying regularly shows your good faith in paying off the debt and will work in your favor if the situation does make it to court.
  3. If you’re being sued, seek pro bono legal counsel – do an internet search to see if there’s a legal aid in your city – this will offer you the opportunity to seek out free legal representation so you can work for the best possible outcome in court.

Payday loans lead to a scary and vicious cycle of debt. However, if you focus on eliminating them from your life once and for all, you can make headway and reach financial freedom. After that happens, the best defense is to avoid payday loans at all costs in the future.

Image Credit: Davide Gabino

This post was published by Shannon, Community and Customer Support Manager for » ReadyForZero. ReadyForZero is a company that helps people get out of debt on their own with a simple and free online tool that can automate and track your debt paydown.

[…]

Rosen Law Firm Reminds The Cash Store Financial Services, Inc. Investors of August 26, 2013 Class Action Deadline …

NEW YORK, Aug. 21, 2013 (GLOBE NEWSWIRE) — The Rosen Law Firm, P.A. reminds The Cash Store Financial Services, Inc. (CSFS) investors of the important August 26, 2013 lead plaintiff deadline in the class action brought on behalf on behalf of those who purchased Cash Store stock during the period between November 24, 2010 and Mary 13, 2013.

To join the Cash Store class action, visit the firm’s website at http://rosenlegal.com, or call Phillip Kim, Esq. or Kevin Chan, toll-free, at 866-767-3653; you may also email at pkim@rosenlegal.com or kchan@rosenlegal.com for information on the class action.

NO CLASS HAS YET BEEN CERTIFIED IN THE ABOVE ACTION. UNTIL A CLASS IS CERTIFIED, YOU ARE NOT REPRESENTED BY COUNSEL UNLESS YOU RETAIN ONE. YOU MAY ALSO REMAIN AN ABSENT CLASS MEMBER AND DO NOTHING AT THIS POINT. YOU MAY RETAIN COUNSEL OF YOUR CHOICE.

The Complaint asserts violations of the federal securities laws against Cash Store and certain of its officers and directors for issuing materially false and misleading statements about the Company’s true financial condition. According to the lawsuit, Cash Store overvalued a major loan portfolio it had acquired, failed to properly account for a lawsuit settlement, had material internal control deficiencies, and as a result issued materially false and misleading financial statements to investors. As a result, the value of Cash Store stock fell, damaging investors.

If you wish to serve as lead plaintiff, you must move the Court no later than August 26, 2013. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Phillip Kim, Esq. of The Rosen Law Firm, toll-free, at 866-767-3653, or via e-mail at pkim@rosenlegal.com. You may also visit the firm’s website at http://rosenlegal.com.

The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation.

Contact:

Laurence M. Rosen, Esq.
Phillip Kim, Esq.
Kevin Chan
The Rosen Law Firm P.A.
275 Madison Avenue 34th Floor
New York, New York 10016
Tel: (212) 686-1060
Toll Free: 1-866-767-3653
Fax: (212) 202-3827
lrosen@rosenlegal.com
pkim@rosenlegal.com
kchan@rosenlegal.com
www.rosenlegal.com

[…]

BOK Financial's payday loans subject of class-action lawsuit …

Banks owned by the holding company of a Wichita mortgage lending business are the subject of a class-action lawsuit involving payday loans.

The lawsuit, brought by Kansas City, Mo., law firm Stueve Siegel Hanson and Tycko & Zavareei of Washington, D.C., alleges that some customers of those banks owned by Tulsa-based BOK Financial who obtained FastPay loans “were charged annual percentage rates grossly in excess of the rates represented in the FastLoan agreements.”

But in a statement e-mailed to The Eagle on Wednesday, BOK said the lawsuit is without merit and that it is filing a motion for summary judgment.

“Our disclosure very clearly indicates the cost of the product and the pricing is consistent with industry standards,” Pat Piper, executive vice president of BOK Financial’s consumer division, said in the statement. “When the product was launched two years ago, the Office of the Comptroller of the Currency had expressly reviewed it and presented no objection to the bank proceeding with the product.”

BOK Financial operates Bank of Oklahoma Mortgage in Wichita. It is the holding company of the banks named in the lawsuit, which are Bank of Albuquerque, Bank of Arizona, Bank of Arkansas, Bank of Kansas City, Bank of Oklahoma, Bank of Texas and Colorado State Bank and Trust.

[…]

Rosen Law Firm Reminds The Cash Store Financial Services, Inc. Investors of Important Class Action Deadline — CSFS

NEW YORK, July 14, 2013 (GLOBE NEWSWIRE) — The Rosen Law Firm, P.A. reminds The Cash Store Financial Services, Inc. (CSFS) investors of the important August 26, 2013 lead plaintiff deadline in the class action brought on behalf on behalf of investors who purchased Cash Store stock during the period between November 24, 2010 and May 13, 2013.

To join the Cash Store class action, visit the firm’s website at http://rosenlegal.com, or call Phillip Kim, Esq. or Kevin Chan, toll-free, at 866-767-3653; you may also email at pkim@rosenlegal.com or kchan@rosenlegal.com for information on the class action.

The Complaint asserts violations of the federal securities laws against Cash Store and certain of its officers and directors for issuing materially false and misleading statements. According to the lawsuit, Cash Store overvalued a major loan portfolio it had acquired, failed to properly account for a lawsuit settlement, had material internal control deficiencies, and as a result issued materially false and misleading financial statements to investors. When the market learned these adverse facts, the value of Cash Store stock fell, damaging investors.

If you wish to serve as lead plaintiff, you must move the Court no later than August 26, 2013. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Phillip Kim, Esq. of The Rosen Law Firm, toll-free, at 866-767-3653, or via e-mail at pkim@rosenlegal.com. You may also visit the firm’s website at http://rosenlegal.com.

The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation.

Contact:

Laurence M. Rosen, Esq.
Phillip Kim, Esq.
Kevin Chan
The Rosen Law Firm P.A.
275 Madison Avenue 34th Floor
New York, New York 10016
Tel: (212) 686-1060
Toll Free: 1-866-767-3653
Fax: (212) 202-3827
lrosen@rosenlegal.com
pkim@rosenlegal.com
kchan@rosenlegal.com
www.rosenlegal.com

[…]

Cash-now Promise of Lawsuit Loans Under Fire

“Get Cash in 24 hours!” “Need cash now? Get a cash advance for your pending lawsuit.” “Lawsuit Loans for Lawsuit Cases.”

Your credit card bill already comes attached to alluringly blank “convenience checks.” Your tax preparer tempts you to apply for tax refund loans. You’re bombarded with television commercials for payday loans.

Now, a relative newcomer to this list of “fast cash” borrowing enticements is beginning to hit critical mass and it suddenly is attracting a high degree of attention from state legislatures.

It is called a “lawsuit loan” or, if you are in that business, “lawsuit funding.” Regardless of the label, it is cash loaned to plaintiffs awaiting judgments or settlements in civil lawsuits, most often personal injury cases such as auto accidents, product liability issues, slips and falls, and so on.

It is a rapidly growing — if still little known — financial phenomenon, one that currently accounts for an estimated $100 million in business every year. Plaintiff lawsuit funding began around 1997, according to an industry group.

Lawsuit loans can prove helpful to some people, particularly those who are in dire financial straits, but they are controversial and politically charged. Since January 2013, at least 20 bills have been filed in state legislatures to regulate the burgeoning industry. Lobbyists pro and con are waging pitched battles this year in the legislatures of Illinois, Indiana, Missouri, Texas and at least seven other states.

If you’re a borrower, they can be astonishingly expensive. Some lawsuit loan borrowers find themselves paying annual interest rates in excess of 100%.

“The lawsuit lenders charge sky-high interest rates on these loans, often more than 100% annually,” said Justin Hakes, a spokesman for the U.S. Chamber Institute for Legal Reform, which represents business interests and serves as a counterweight to groups representing plaintiff trial lawyers.

“Even when the consumer ‘wins’ or settles the case, he or she often recovers no money, because the entire amount of the award or settlement goes to pay the plaintiff’s attorneys or to repay the lawsuit lender,” Hakes said.

Representatives of the lawsuit funding industry acknowledge that interest rates, which they prefer to call “funding fees,” are high. They say this is necessary because they are taking most of the risk. The borrowers tend to have poor credit ratings, few other resources and one great advantage when it comes to lawsuit loans: If the borrower loses the underlying court case, he or she never has to repay the loan.

“In our case, we are only paid back when and if there are sufficient funds to repay us from the settlement,” said Eric Schuller, director of government affairs for Oasis Legal Finance, based in the Chicago area and one of the nation’s most active legal financing firms. ;

“In most cases, the attorney gets paid first, then any other liens on the claim, such as medical and mechanical liens,” Schuller said. “Also, there may be statutory liens on the claim, such as child support. Then and only then, if there is enough to pay us, we get our money. We never go after a consumer after the fact if there are not sufficient funds to repay us.”

How lawsuit funding works

Here’s how it works:

The cash-strapped plaintiff calls a toll-free number or fills out an online application. The firms are easy to find. Many advertise on television and host attractive websites. “America’s Premier Funding Source,” claims Cash4Cases. “Providing Cash to Plaintiffs NOW!” says Lawsuit Funding Solutions. “No credit or work history needed. Hablamos Espanol,” offers USA Lawsuit Loans.

The lawsuit funding firm then contacts the applicant and his or her attorney, assesses the underlying case and, if it believes that the plaintiff-applicant will prevail, offers the cash. Most borrowers end up with a few thousand dollars, though some can receive tens of thousands of dollars. It all depends on the case and the prospects of winning a judgment or settlement.

The industry and its representatives say they are performing a public service. More than 60% of these borrowers use the funds, at least partially, to avoid mortgage foreclosures or eviction from their homes, according to one industry study.

“We help people who are waiting for a settlement or a judgment, people who need to make ends meet as they wait for a fair outcome of their case,” said Kelly Gilroy, executive director of the American Legal Finance Association, which represents 31 lawsuit funding companies.

“It’s for living expenses,” she said. “It’s not for legal expenses. Frankly, most of these people don’t need this for legal expenses because their attorneys have taken the case for contingency fees. This is just some gas for them, so they can stay in the game.”

Level the playing field

Given the glacial pace of some civil court proceedings and settlement negotiations, these loans help needy plaintiffs level the playing field with resource-laden insurance companies and other defendants, according to Gilroy, Schuller and other industry figures.

“Over 85% of the funds we give to consumers go to pay immediate household needs, such as the mortgage, rent, car payments and putting food on the table,” said Schuller, the officer of Oasis Legal Finance. “It is used to keep them above water until they wait for the outcome of their legal claim.

“These funds allow consumers to get a just and fair settlement instead of pennies on the dollar,” he said. “We allow a consumer the ability to not have to decide [between] a lowball offer and putting food on the table or paying the electric bill.”

Representatives of insurance companies and other businesses that often find themselves cited as defendants in civil cases offer a different view. They say these loans encourage plaintiffs and their lawyers to needlessly prolong their cases, delaying outcomes and causing courthouse logjams.

“Logic dictates and experience shows that plaintiffs are less likely to accept reasonable settlement offers if they have to pay not only their attorneys and costs, but also the litigation funding company,” said Matt Fullenbaum, director of legislation for the American Tort Reform Association, a Washington, D.C., group that represents companies, business associations, nonprofit groups and others that sometimes find themselves on the other side of lawsuits filed by personal injury lawyers.

“The lawsuit lenders acknowledge that litigation funding is intended for the desperate, which necessarily means this industry is designed to prey on the most vulnerable,” Fullenbaum said.

High rates … or are they fees?

Which brings us to interest rates. Virtually no advertising sponsored by these companies offers prominent mention of interest rates (again, usually called “funding fees” for a reason we will get to shortly) and many firms go to great lengths to obscure the rates.

The reason: Many charge 2% to 4%, plus fees. That doesn’t sound so bad, right?

But the thing is, that’s 2% to 4% per month and compounded. So, for a one-year $1,000 loan, you could end up paying $1,601.03 (plus fees), which yields a 60% annual percentage rate. If your case and your loan drag on for two years, your $1,000 loan at 4% per month now has a payoff of $2,563.50.

“We don’t check credit,” Gilroy said. “If you have a bad credit rating, it doesn’t affect this product. We don’t do employment checks and there’s no collateral. This is a very risky product.

“This is a higher cost product than some other things because other financial products have a guarantee that they’ll get something back and our companies do not have that guarantee,” she said.

‘Non-recourse’ source of money

In legalese, the term is “non-recourse.” This means if the plaintiff-applicant loses the case, the lender has no other way to recover the loan.

“Is this product cheap and inexpensive? No,” Schuller said. “Is there a high risk associated with these types of transactions? Yes.

“We are the last resort for people and as such we have a high loss rate,” he said. “As an example, in 47% of the cases we fund, we get less than our contracted amount. 22% of the time, we get less than the principal back, and 10% of the time, we get zero back.

“Now what financial institution would survive when 47% of the time they get less than what they thought they would get back? Not many.”

Generally speaking, a borrower is not compelled to repay more money than he or she receives from the ultimate settlement or judgment, but industry critics say that some borrowers end up with nothing much more than the temporary use of the borrowed money.

“Lawsuit lending abuses are, unfortunately, common,” said Hakes, spokesman for the U.S. Chamber group.

The American Tort Reform Association agreed.

Not really loans?

“Litigation funding companies charge their customers exorbitant fees,” Fullenbaum said. “Such fees are considered usury in most contexts, but because the litigation funding company provides a non-recourse feature, they maintain that these transactions are not subject to banking rules, regulations and lending laws.”

Lawsuit funding firms are working to keep it that way. This explains their aversion to terms like “loans,” “lender” and “interest rates.” They say it is important to distinguish this form of funding from what most people generally regard as loans.

“The lawsuit lending industry goes to great lengths to tell the public that consumer lawsuit loans are not really loans but are instead ‘non-recourse financing,’ and this is how, in many states, lawsuit lenders have managed to skirt usury and fair-lending laws,” Hakes said. “But their advertisements sing a different tune. A simple Web search using the term ‘lawsuit loan’ turns up a flurry of paid advertisements with headlines like ‘lawsuit loans NOW!’ “

State legislative battles

In turn, that explains the action in many state legislatures.

The lawsuit funding industry already has successfully convinced lawmakers in Maine, Ohio and Nebraska to essentially sanction and modestly regulate lawsuit funding, while keeping it distinct from interest rate and other limitations enforced on regular loans.

At the same time, the lawsuit funding industry is fighting a multifront campaign against proposals to ban or significantly restrict these transactions. Such bills, in most cases written with the assistance of the U.S. Chamber or other pro-business groups, have been filed this year in Iowa, Illinois, Indiana, Kansas, Missouri, Mississippi, Nevada, Oklahoma, Rhode Island, Tennessee and Texas. (See chart.)

In Texas, for instance, Rep. Doug Miller, R-New Braunfels, filed a bill that would define such funding as “loans,” cap the interest rate at 10% and require disclosure of such agreements to all parties in a lawsuit. In private life, Miller and his wife run an insurance agency.

“This is a troubling trend that we’ve seen growing across this country — the impact of predator lawsuit lending,” Miller told reporters after filing his bill. “Right now, in Texas and in states across this country, some lenders are allowed to prey on consumers, specifically plaintiffs in lawsuits, offering them fast and sometimes easy cash. However, sometimes this money comes with serious strings attached, and it comes with virtually no recourse for the consumer and no regulatory oversight.”

So, as this plays itself out around the country, potential borrowers are largely on their own, as so often is the case.

Words of advice

Advice from those opposed to lawsuit loans:

“At a minimum, litigation funding companies should be subject to the same banking laws as traditional lenders,” Fullenbaum said. “However, ATRA recommends that lawmakers ban the practice of third-party financing of litigation altogether. We would recommend that anyone considering a lawsuit loan first consult with their attorney.”

Advice from the lawsuit funding industry:

“If you can go to a friend or relative to get some financial help, do so,” Schuller said. “But if you do not have that option, consumer legal funding is an opportunity for you to survive until your claim settles so you do not have to take pennies on the dollar and get shortchanged.

“But, when you do, make sure that the company that you are working with clearly discloses the terms of the contract and they you fully understand what it is you are signing and your attorney fully knows about the transaction,” he said.

“This is typically a once-in-a-lifetime product and you need to make sure that you are protected. Only deal with a firm that will explain everything to you upfront.”

;See related: What to ask before getting a lawsuit settlement loan

;

[…]

Lawsuit Settlement Funding Firm Announces Christmas and Holiday Gift Card Promotion For December

NEW YORK, Nov. 23, 2012 /PRNewswire/ — Online shoppers starting on Black Friday can find an immediate bargain on a lawsuit cash advance. Legal-Bay, an industry leader in lawsuit funding, has created a one-time gift card offer for any and all clients that fund with Legal-Bay ending on December 31, 2012.

Legal-Bay has been in the giving mood in 2012 funding hundreds of clients on various lawsuits, especially car and commercial truck accident funding, DePuy Hip, and Transvaginal or Vaginal Mesh product liability lawsuits. Legal-Bay is expecting a brisk December for pre-settlement funding on these cases as clients look to access cash for Holiday Shopping from alternative sources than traditional means. Legal-Bay’s promotional gift card gives their clients an extra incentive to “shop” their lawsuit advance with them.

Patty Kirby, Head of Client Relations, commented on the holiday cheer, “It is without question that we are a leader in DePuy and Transvaginal Mesh litigation funding in the industry. We do this by offering exceptional customer service, fast approvals, and typically the lowest rates on all cases in the industry. We have now added a promotion -unlike any of our competitors- that also gives something back to our clients at a time of the year when they needed it most. What better way for a client who is looking for money to buy gifts, than to access funds from their lawsuit and get a free gift card on top of the cash advance?”

Legal-Bay said that any clients that fund for $1,000.00 or more will receive a minimum of a $50 gift card upon funding. And clients receiving a lawsuit Christmas cash advance of over $10,000.00 will receive a minimum of $100 in a free gift card. The gift card will be useable at any retailer of the client’s choice.

Legal-Bay has announced that they believe both the Johnson & Johnson DePuy Hip Recall and the Transvaginal Mesh litigation settlement news to pick up in early 2013. Legal-Bay’s legal contacts have estimated DePuy and Transvaginal Mesh settlement amounts to range from $150K to $500K or more on both of these cases, depending on many factors. However, clients are not expected to receive actual funds until later in 2013 or 2014, which makes this holiday season a good time to access lawsuit funds. Legal-Bay’s lawsuit pre-settlement funding program is a cash advance and not a lawsuit loan. Meaning, the funds are repaid out of a portion of the settlement amount only if the client wins the case.

Clients who are interested in obtaining cash today before their case actual settles can apply for a free quote through Legal-Bay. Funding approvals typically take 48 hours from the time the fee evaluation starts. Clients who fund prior to Dec. 31, will also receive the free gift card promotion. However, Legal-Bay urges clients to apply early as sometimes delays can occur from the plaintiff’s law firm, especially during the Holidays.

Lawsuit plaintiffs can apply online now at: lawsuitssettlementfunding.com or by calling Legal-Bay’s toll free hotline where funding agents will be standing by 24 hours a day over the holiday funding season.

Contact: Patty Kirby, Email info@legal-bay.com

[…]

Fifth Third Faces Lawsuit Over 'Payday' Loans

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Home > Tools & Resources > Headlines > Fifth Third Faces Lawsuit Over ‘Payday’ Loans

Fifth Third Faces Lawsuit Over ‘Payday’ Loans

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Jacksonville Business Journal (FL)
August 22, 2012
Wilson, Jen

In a class-action lawsuit filed in U.S. District Court in Cleveland, Fifth Third Bank was accused of charging illegally high interest for what the plaintiffs referred to as “payday” loans. The question is whether the cost that the bank charges for its Early Access loan program is considered fees or interest. Plaintiffs in the case claim that Fifth Third’s fees amounted to interest with annual percentage rates (APRs) that reached 1,000 percent. The bank’s website says that the Early Access program has fees that reach a 120 percent APR when repaid in a month, but the bank calls it a transaction fee rather than an interest rate.
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[…]

Payday Loans – Latest and Updated News at One Place

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A payday day loan is short-term loan that people borrow until their next pay check. The amount of money that is loaned is only a small amount, the maximum is usually around £1000. Over the last few years payday loan companies have become increasingly popular. It is very rare to find someone who hasn’t seen an advert for a payday loan on television or whilst they have been browsing the internet. But why all of a sudden have payday loan companies become increasingly popular? You are about to find out.

Convenience – Payday loans when compared to a loan from a bank are just much more convenient. Most payday loan companies operate online so those wishing to take out a small loan can simply visit the website and apply, instead of having to make a long journey to a bank.

Faster Payments – Money borrowed from payday loan companies is usually paid into your account within 24 hours of applying for it. They work simply by a direct debit transfer straight into your account. Bank loans often take a lot longer to be paid into your bank meaning that payments are much more likely to be missed.

Easy To Qualify For – The common perception is that payday loans companies lend to anyone and everyone. This is not the case, although payday loans are much easier to qualify for, they don’t lend to just anyone who asks. To be given a loan from a payday loans company you need to prove that you are employed and that you earn over £1000 per month. Payday loan companies will only lend if they know that a person is capable of paying them back.

Easy to Understand – The amount that is required to be paid back is much easier to understand than a standard loan. Most payday loan companies offer a flat rate per amount of money that you lend. For example if you lend £200 you may be expected to pay £210. Before the loan has even gone through users know how much they will be required to pay.

One Payment – Loans are paid back on a set date, they are not spread out over a number of months. This is much more preferred as it allows people to stay more organised when it comes to their finances.

Customer Service – Payday loan companies on the whole have great customer service. They have teams of trained staff working around the clock that are willing to answer your calls. Banks are well know for having poor customer services and keeping those who are in need of a loan on hold.

This guest post was written by John Szabo, a part time blogger, on behalf of Poundaccess. Poundaccess are a UK based company offering quick short term loans.

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