Financial Conversations Session 2DEVIN STUBBLEFIELD, FINANCIAL COACH/TRAINER

Helping Parents to Choose Appropriate

Financial Service Providers

Topics Discussion

What You Should Know

about Neighborhood

Financial Services

Working with Banks and

Credit Unions

Part 1

Neighborhood

Financial

Services

BEWARE OF PREDATORY

LOANS AND WHAT TO DO IF

PARENTS HAVE ONE

• How to recognize scams

and predatory lending

• Pay Day Loan Guidelines

in Washington State

• Pawn Shops

• Resources

Financial Mouse Traps

predatory

excessive or exploitive in amount or cost,

as out of greed or to take advantage of

consumers or patrons

scam

fraudulent scheme, especially for

making a quick profit; to cheat or

defraud

They Try to Establish a Connection

They make it seem as if they are Credible

They Play on Emotion

Characteristics of Scam Artists

Common Scams

Overpayment and Fake

Check Scams

Emergency Scams

Employment Scams

Sweepstakes & Lottery

Scams

http://myidaproject.org/scam-alert-9-84-charges-to-

your-account-may-be-bogus/

1-Ring Cell Phone

Missed Calls

DO NOT ANSWER OR CALL NUMBERS

FROM THESE AREA CODES

268, 284, 473, 664, 649

767, 809, 829, 849, 876

Scams Watch List

Report Scams

Washington State Attorney General

1125 Washington St SE

Olympia, WA 98501

360.753.6200

www.atg.wa.gov

Questions & AnswersScams

Payday Lenders

Check Cashers

Pawn Shops

Outside of the

Main Stream

Financial

Institutions

Case Study

Maria’s Payday Loan

$80 in total fees

for a $200 loan!

Washington

State payday

lending

consumer

protection laws

may not apply

to loans

received

through Internet

applications.

Tips to Share with Parents

Verify the license of a payday lender in Washington State by calling 1-877-RING-DFI (746-4334) or verifying a license online at https://fortress.wa.gov/dfi/licenselu/dfi/licenseLU/.

Read the fine print in any and all documents/terms of agreement you are asked to sign/agree to

NEVER sign or agree to anything you don’t understand

Consider Alternative Solutions

Comparison Shop for the lowest fees and penalties. For example, some credit unions offer payday loans with lower fees.

Borrow Only What You Can Afford To Pay Back

Know When Your Payment Is Due

Take Advantage Of Organizations That Are Available To Help You With Your Financial Situation.

Locate Your Local Asset Building Coalition at http://www.washingtonabc.org/node/29

Develop A Budget Plan

Tips to Share with Parents

"CONVENIENT BUT COSTLY"

Check Cashers

Conveniently located within neighborhood communities

Open late into the evening during the week

Higher Fees for check cashing and check casher debit card

May charge up to 5% of the amount of check

No record of banking with a check casher

Pawn Shops"SHORT TERM LOAN BROKER"

...THAT WANTS YOUR STUFF

The Way it Works

You need money

You pledge your stuff

You get some money at a

% of the value of your stuff

You pay back the money in

90 days + the fees (interest)

What if you are unable to

pay it back or renew?

You forfeit your stuff

The money is gone!

You have lost twice…

stopthedebttrap.org

responsiblelending.org

Other Resources

www.consumerfinance.gov

To make markets for consumer financial products and services

work for Americans — whether they are applying for a

mortgage, choosing among credit cards, or using any number of

other consumer financial products.

Other Resources

The federal government’s website to help you be safe, secure

and responsible online.

Questions & AnswersAlternative Financial Services

Part 2

Working with

Banks and

Credit Unions

FINANCIAL PARTNERSHIPS

THAT WORK

• Bank of Washington

• Getting a Fresh Start in

Banking

Distinctions

Unbanked: No checking or savings account.

Underbanked: Has an account, but continues to rely on

alternative financial services, like check-cashing services,

payday loans, rent-to-own agreements or pawn shops.

bankonwashington.org

Barriers to

Bankinghttps://www.consumerdebit.com

Pay attention

to the reasons

why they were

reported to

ChexSystems.

Comparison Chart for Getting a Fresh Start

Questions & AnswersBank On Programs

Financial ConversationsDEVIN STUBBLEFIELD, FINANCIAL COACH/TRAINER

Thank You!