Week in review: 5 subprime stories you might have missed
Inside Subprime: October 2, 2017
By Caroline Thompson
Good morning! Here are five important financial stories from the weekend.
Pittsfield, MA financial institution receives nearly $700,000 in grants to help low-income borrowers.
In order to combat the effects of payday lending in the county, Greylock Federal Credit Union has been granted $686,000 from the Federal Community Development Financial Institutions Fund to help boost the bank’s ability to give loans to people with low levels of financial literacy, who might otherwise be force to take out high-interest payday loans. Read more at the Berkshire Eagle.
Want more info on predatory payday loans? Check out our payday loan info page to learn why you should avoid them at all costs.
Kansas City man fined $4 million for selling fake payday loan debt.
The Federal Trade Commission has slapped Kansas City, KS resident Joel Tucker with a $4 million fine for allegedly selling investors bogus payday loan debt which he created. According to court filings, Tucker would take real names, addresses and social security numbers, and assign them payday loan debts they did not actually owe. He would then sell these debts to investors, who would attempt to collect on these fake debts. Often, victims would pay up money they didn’t owe just to stop the harassment. Read more at The Kansas City Star.
Read more about how to deal with pushy debt collectors on the blog.
Deutsche Bank must pay $190 million for manipulating the foreign market exchange.
The United States Federal Reserve is fining Deutsche Bank $190 million for its role in a worldwide market fixing effort carried out by 15 different banks. Read more at London South East.
For more bank scandals, check out our timeline of Wells Fargo misdeeds.
Bank lobby wants to stop consumers from class-action suits.
In July, the Consumer Financial Protection Bureau issued a new rule banning banks from burying arbitration clauses deep in the fine print of their contracts. Now the bank lobby is pushing back, saying this rule could actually harm consumers. Read more at Reuters.
For more about the CFPB decision, check out this recent Inside Subprime post.
Feds crack down on predatory lending scams aimed at veterans.
Thousands of veterans around the country have been targeted by loan refinancing schemes that end up leaving the borrower in worse financial shape than before. According to The Columbus Dispatch: “Officials at the Government National Mortgage Association, better known as Ginnie Mae, say some veterans are refinancing their properties multiple times a year. That’s a result of lenders who aggressively solicit competitors’ recent borrowers to persuade them to refinance again.”