A disgruntled investor has filed a breach-of-contract lawsuit against a local online company that touts rates of return as high as 21 percent for investing in auto loans for car buyers with bad credit. Houston investor David Hamer said in a lawsuit filed Friday in Oklahoma County District Court that he invested $25,000 in the Oklahoma City-based company Invest in Car Notes.com Inc. in January, but stopped receiving monthly checks for the interest on his investment in July.
A website for the Oklahoma City-based company Buy Car Notes.com Inc. promises potential investors they have "just stumbled upon one of the best investment opportunities of the 21st century. Both Buy Car Notes.com Inc. and its sister company, Invest in Car Notes.com Inc., tout interest returns as high as 21 percent by investing in auto loans for car buyers with bad credit.
CHARLOTTE, N.C. - Bank of America Corp. said Friday it lost more than $2.2 billion in the third quarter as loan losses kept rising, providing more evidence that consumers are still struggling to pay their bills. The nation's second-largest bank said it wrote down loans on its books by almost $10 billion during the July-September period, up almost $1 billion from the second quarter. The bank also added $2.1 billion to its reserves to cover bad loans, bringing its provision for credit losses to $11.7 billion. The bank's total allowance for loan and lease losses now totals $35.83 billion.
For IBA-member banks, and for banks across the globe, these are the worst of times. National media are beating us up through misuse of the word, banking. The federal government supposedly bails us out, then turns on those banks that accepted their help. Banks are being chastised in two directions: first for allegedly causing this problem by being too lenient in our underwriting of loans, particularly mortgages; and now for being too tight with credit. These bad times eventually will pass. Fortunately nearly all of the banks in Indiana are well capitalized, and more than 90 percent made a profit in 2008. Even though 2009 will be a difficult year, Indiana banks will survive to see better years in 2010, 2011, 2012 and beyond.
While most financial institutions are reporting losses, Bartlett- based First South Credit Union turned a profit of $9.4 million in 2008. And the credit union is setting aside just $900,000 for possible bad loans.
If the banks don't have money to lend, then why are we still getting credit card offers in the mail weekly? And if you search on the Web for "loans for people with bad credit," why do you get more than a million hits? This is not a crisis, but a hoax to steal the taxpayers' money. The unethical, reckless people from Wall Street shouldn't be bailed out, but sent to prison.
Simply running payday lenders out of Virginia on a rail won't solve the underlying problem that allows them to exploit low-income customers. Thousands of Virginians with no savings and bad credit will still need small, short-term loans to pay for car repairs, medical bills or other unexpected financial crises.
Earnings at Wisconsin's credit unions dropped more than 19% last year as the member-owned financial institutions beefed up reserves to cover loans that could go bad, a new report by state regulators shows. Net income for credit unions in 2008 was $91.2 million, compared with $112.9 million a year earlier, according to the Wisconsin Office of Credit Unions.
THE meltdown in the market for subprime mortgages is a disaster long in the making. Lending money to borrowers with shaky credit on terms that made timely repayment difficult is risky business to begin with. Factor in gullible borrowers, greedy investors, sticky- fingered brokers, over-eager lenders and lax supervision, and you have all the ingredients of a full-blown crisis. The subprime market consists of loans to borrowers who do not qualify for regular loans because of low earnings, a bad credit history - or both. These loans usually carry higher interest rates and often are loaded with cash-draining gimmicks. These include an "adjustable rate" that starts out low and then suddenly increases, often steeply, as well as prepayment penalties and high fees for the mortgage brokers who t...
MANCHESTER, England, March 15 /PRNewswire/ -- Debt advice experts at MoneySolve have condemned the extortionate missed payment penalties and excessive rates of interest applied to some unsecured loans and credit cards. The debt specialists believe that these charges make a bad situation worse for the most financially vulnerable consumers, noting that:
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