financial predatory practices

Division of Finance and Corporate Securities

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Financial Predatory Practices

Diane ChildsFinancial Information Outreach Coordinator

Division of Finance and Corporate Securities

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Our Programs Debt Management Lending – Payday &

Consumer Finance

Financial Institutions Pre Need Money Transmitters Securities Pawnshops

Mortgage Lenders Identity Theft

Division of Finance and Corporate Securities

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What we do

Division of Finance and Corporate Securities

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Submitting a complaint

Division of Finance and Corporate Securities

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License or Registration

1-866-814-9710

www.dfcs.oregon.gov

Check and Verify

Division of Finance and Corporate Securities

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Debt Management CompaniesAssist with:

• Debt • Credit repair • Loan modification• Bankruptcy (how to)• Financial education

Division of Finance and Corporate Securities

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Allowable Fees Maximum counseling, agreement

fee: $50 Maximum monthly fee: $65

7.5% charge = total amount of reduced debt (debt settlement, loan mods, short

sale)

Division of Finance and Corporate Securities

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Loan Modifications

Similar fee structure

Free Help: HUD-certified foreclosure counselors

1-800-SAFENETwww.foreclosurehelp.oregon.gov

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Division of Finance and Corporate Securities

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Red FlagsDebt Management

• Settling for "pennies on the dollar"

• No adverse affect on credit ratings • Don’t pay creditors

• Upfront fees

Division of Finance and Corporate Securities

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Red FlagsLoan Modification

• Stop making mortgage payments

• Mortgage payment to hired company

• Ads, mailings similar to government

• Performs “forensic audit”

Division of Finance and Corporate Securities

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• Upfront fees • Solicitations: email, mail, phone

or Internet pop-up ads • Guarantees positive results

• Out-of-state attorneys (no registration needed)

Combined Red Flags

Division of Finance and Corporate Securities

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State of Oregon Licensed

File Number, Notice

Privileged and Confidential

…tri-bureau credit report…owe combined total of $28,589

Call Now…eligibility expires

Portland Office

Division of Finance and Corporate Securities

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Actual rates charged

343%

950%

800%2737

%

90%

Division of Finance and Corporate Securities

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Legal Payday Loan Rates 36% annual percentage rate

(APR)*

One time origination fee No renewal fees

Restrictions on additional loans

*Interest, Fees – 154% if lender charges maximum rate, fees

Division of Finance and Corporate Securities

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Legal Consumer Loan Rates

36% annual percentage rate (APR)

No origination fees

No “bump up” to higher rate

Division of Finance and Corporate Securities

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Predatory Tactics

Get cash now!

No credit check!

Bad credit? No problem!

Division of Finance and Corporate Securities

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Identity Theft Tactics

Division of Finance and Corporate Securities

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License

1-866-814-9710

www.dfcs.oregon.gov

Check and Verify

Division of Finance and Corporate Securities

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Cease-and-Desist

• $17,500 penalty• Stop collection activity

• No license• Excessive interest rates: 89% -

342%

Division of Finance and Corporate Securities

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Check License or Registration

Know legal fees, charges, interest rates

Contact us:

Check and Verify

1-866-814-9710

www.dfcs.oregon.gov

Division of Finance and Corporate Securities

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More Information

www.dfcs.oregon.gov

1-866-814-9710