Subprime Lending News 7/11/17:
California seniors are increasingly dependent on payday loans, 2017 credit card debt hits $1 trillion and how to sue your bank.
By Caroline Thompson
How to sue your bank, why seniors are flocking to payday loans, and more financial news to spice up your Tuesday morning!
Growing number of California seniors seek payday loans.
A report from the California Department of Business Oversight has found that many seniors in need of fast cash are turning to high-interest payday loans to cover their expenses. The report found that Californians 62 and older took out a staggering 2.7 million in payday loans in 2016, an amount that is nearly three times as much as the previous year. Experts say this drastic increase in seniors seeking out payday loans may be due to the skyrocketing cost of living in the state. Nancy McPherson, a state director for AARP California, told the Mercury News that she is worried about this trend: “We understand that people need access to capital – that’s a given. But it shouldn’t be done this way. It makes a person’s financial situation worse by charging such high fees. It’s predatory lending.”
Bank did you wrong? It just got easier to sue.
Banks and credit card companies can no longer block consumer-backed class action lawsuits, according to a new rule issued by the Consumer Financial Protection Bureau. The rule, which will go into effect in about eight months, will prohibit companies from burying arbitration clauses — which prevent customers from banding together for class action lawsuits, and force anyone who wants to sue to go it alone — deep into the fine print of their contracts.
Credit card debt hits $1 trillion in 2017’s first quarter.
As the cost of living rises steadily in cities around the country, many Americans are turning to credit cards to make up the difference between their monthly income and their household expenses. According to a report by the U.S. Federal Reserve, total consumer borrowing rose by $18.4 billion in May, and credit cards are one of the most expensive ways to borrow.
We made a financial app directory (just for you!)
You probably know there are a lot of apps out there that can help you improve your finances and get smart about your money, but which ones are actually worth the download? We decided to figure that out, and created a brand-new resource for money-savvy consumers. Check out our OppLoans App Directory to see for yourself! Each app page has a description of the price, a short sentence explaining what the app does, a list of features, and a longer description of whether or not you should try the app out for yourself, as well as links to download it.