Subprime Lending News 7/12/17:
The best and worst ways to use a personal loan, a Chicago woman scams local businesses, and one-week payday loans investigated in South Dakota.
By Caroline Thompson
The Fed chairwoman speaks out, a breakdown of how to best use a personal loan, and more! Check out today’s must-read financial news!
What are the best (and worst) ways to use a personal loan?
According to a new piece from The Independent, if you have to take out a personal loan, you should make sure it’s for something that is going to help you in the long run. Their list of “good” uses for a personal loan include consolidating or paying off debt, making improvements to your home, and taking classes for professional development or continuing education. When should you opt out of taking a personal loan? Don’t use one to pay for your wedding, honeymoon, vacation, car purchase or to pay your medical bills.
Fed chairwoman optimistic on the state of the economy.
During testimony today in front of the House Financial Services Committee, Federal Reserve chairwoman Janet Yellen said she is confident in the strength of the American economy, highlighting the country’s job growth and recent falling unemployment rates. She also hinted that the Fed may move to lower its bond holdings this fall.
Chicago woman scams small businesses out of thousands.
Police are looking for a woman in Chicago who has been using an elaborate credit card scam in order to steal thousands of dollars worth of merchandise from small local retailers. In order to pull off this scheme, the woman convinces the clerk at each store to let her enter a number into the credit card machine before she swipes her card. This takes the machine offline, so even though the sale is marked “approved” on the receipt, the credit card used is never actually charged. The woman appears to have used this tactic to steal more than $3,000 in merchandise at stores around the city.
One-week payday loans investigated in South Dakota.
Banking officials in South Dakota are looking into the legality of the late fees that Dollar Loan Centers in Sioux Falls and Rapid City are charging on their one-week payday loans. While the loans themselves meet the 36 percent rate cap requirements set by the state of South Dakota, the Division of Banking is not yet sure whether the late fees comply with the law. A full review is pending.