Lenders File Lawsuits Against Austin, State Law Allegedly Violated

In the previous week, the latest rules of the City of Austin concerning credit lending are being targeted as two companies filed separate lawsuits against the city. This ordinance was passed by the City Council in the month of August last year.

The said ordinance obliged payday lenders to register with the city, restricted the amount of cash advance offered to borrowers by payday lenders, limited the number of times a loan can be refinanced by a borrower, and barred where payday lenders can carry out their business.

The first company that filed a lawsuit last Tuesday was TitleMax, a car title loan provider in Delaware, and followed by foreign limited liability company Rubicon Equity Partners LLC last Thursday. Both companies allege that the ordinance imposes strict limits on the conditions of loans and might almost forbid their companies from carrying out its business as allowed by state law.

According to the City of Austin Law Department, the claims are not true. Moreover, they are completely ready to stand up against the lawsuits and stay positive that the ordinance is legally sensible.

In the month of January, the ordinance already became a law but was not implemented until May, since a lawsuit was previously filed against it by the Consumer Service Alliance of Texas for the same reason as the lawsuits of TitleMax and Rubicon. However, the suit was stopped early June. Rob Norcross, spokesperson of the alliance, said that the city question whether they had status to file such a lawsuit.

The critics of the ordinance said that the high interest rates and fees charged for short-term loans have become a huge problem for low-income borrowers. On the other hand, supporters said that they offer loans for those who need emergency cash and not for those who are not eligible for the usual loans.

Steven Camp of Gardere Wynne Sewell LLP, which is Rubicon’s representative company, said that Rubicon will entirely aim to pursue the lawsuit.

NADA: Prices of Used Cars Will Decrease Through July

According to most recent information from National Automobile Dealers Association (NADA), there will be a decrease in price of used cars during the month of July. This means that it would make sense for people with not-so-perfect credit to purchase a car.

The majority of people with low credit scores restore their auto credit by investing in used cars because they are usually less expensive than brand new vehicles. As a result, it is crucial that this kind of car buyers have an understanding of the used car market.

Jonathan Banks, the senior analyst of NADA Used Card Guide, said that the prices of all used cars will decrease because of the seasonal demand, especially the cars that usually meet the needs of car buyers with poor credit.

In addition, Banks said that the recent prediction of NADA leads to a decline in prices of used cars by 3 percent in the month of July. Because of the decrease in prices of gasoline, it will result in larger depreciation of compact and midsize vehicles. However, it will assist in control the losses for light trucks, for instance, huge pickups and SUVs.

On the other hand, it is worth mentioning that prices of used car will stay at high levels during the latter part of the year, regardless of the anticipated seasonal reduction.

Since summer vacation season is almost ahead and in order for you to travel, now is the perfect time to consider buying a used car that you might not have been able to buy in the early months of 2012, even when you have a low FICO score.

Moreover, visit the website of Auto Credit Express because they will help consumers with credit problems find the best dealer that can offer them an auto loan approval. They will also help consumers restore their auto credit starting with an online application for car loans.

How Not to Get Bad Credit When You’re Married

The leading causes of divorce are often associated with financial obligation from the couple. To make a marriage last it would be wise to sit down with your partner and discuss your finances, how you wish to manage them.

Experts say that planning and creating a budget can help you in keeping your marriage. You should also learn to invest and split responsibilities in your financial bills and fees as early as you have started living together. But paying bills and investing will not be enough, there should be a consistency in your monitoring of bills and bank records to avoid discrepancies in the records. Though you have been used to managing your single account for years, you have to get used to the idea that you and your spouse are a team now and like the old saying says “what’s yours is his”.

Here are the things you should always bear in mind now that you are married:

First, you should always know your status; you and your husband should discuss your finances and be transparent with one another. It would be wise for both of you to obtain a free copy of the credit bureau report that is up to date and correct.

If you find errors in the report never hesitate to call the agency and have them corrected. To make things better you should compare your credit score with your partner, share insights on how to help improve each other’s scores.

Second, never cancel your existing credit cards. Despite the fact that you are now married, your old card is still stored and updated, do not cancel it because it might affect your score, in fact, it would be smart idea to have it maintained under your name so that if ever you are going to divorce your current husband or if he dies you have your own money to spare.

Third, always remember to apply for a credit account when you really need it. When you get married you may go on purchase frenzy and when a store offers a discount card for their merchandise you may be tempted to sign in. But opening too many credit accounts would cause more damage than good, and you may even end up paying much more than you could have without the discount card.

Finally, the most important of all: make sure you never pay your bills late. Late payments pose very negative impacts on your credit score. When you have assigned each other which bills to pay early in your marriage, make sure you religiously follow your deal.

Getting a New Car Despite Low Credit

Getting your hands on a brand new car is now easier if you are an auto manufacturer’s employee or if you have relatives or friends that do. According to Auto Credit Express, there are plenty of car discounts you could take advantage of even if your credit status is not so brilliant.

Auto Credit Express is adept in these kinds of discount transactions because they have been a strong aid in providing automobile buyers with tainted credit. In fact, their website includes a section that answers most asked questions that consumers have about online car loans bad credit, and they have been at it for about 20 years now.

The cost of new cars are very expensive nowadays that people with less than average credit tend to settle for second hand cars with low interest rates. Unfortunately for them, they had no clue that they could apply for an automobile loan for a new car that would cost them as much.

You can apply for the A-plan, S-plan or X-plan if you are a Ford employee, or if you are a retired employee or a friend of a retired or currently employed Ford employee. If you or your friend is a current Chrysler employee, or if you are retired or you work for one of its suppliers you can avail the Employee Advantage employee purchase, friends program or the affiliate company program. The GMO or GMS is available for GM employees or their retired employees, you can also avail the discount if you are from one of its preferred supplier company or a friend of an employee from that company.

Most of the time, car buyers are allowed to get a discount of the price of a new car for an even bigger saving for the purchase, however even if you qualify for the program, that does not mean you can use the discount you earned.

Sometimes, you have to follow loan approval guidelines you must follow. The lender will be the one to determine your budget for the car, and the interest rate you will have. It is then up to the deal which cars you can get. But then again, a new car is way better than being stuck with a second hand car loan deal.

Poor Credit Affects Auto and Home Insurance

The majority of consumers know that their credit history is affected by their payments on homes or cars, but only a few understand that it actually affects their insurance policies. Most companies that offer auto and home insurance use credit score as a factor in deciding whether to give out or renew an insurance policy, and the cost of premiums.

In the perspective of insurance companies, there is a relationship between credit scores claims. That is, more claims are filed by drivers and homeowners with bad credit histories than those with good credit histories.

Especially under the Fair Credit Reporting Act, insurers must inform their customers when something in their credit report rejects them of insurance, affects their rates to go up, or alters their coverage one way or another.

According to Bob Hartwig, president of the Insurance Information Institute in New York, low credit scores having a correlation with higher losses are supported by facts and are undeniable. In fact, using consumer credit has made it possible for insurers to price the risk of policies in a more accurate way. Moreover, it has also enable insurers to correctly price policies for risky drivers.

However, consumer advocates disagree with using credit reports in pricing insurance policies. According to them, the practice is unfavorable to those with low incomes and is unjust to those whose credit score might low due to difficulties like sickness, unemployment or divorce.

In addition, consumer advocates approximate that roughly one third of consumers know that insurance companies use their credit reports. Birny Birnbaum, executive director for the Center for Economic Justice, said that insurers do not take actions to inform consumers that their credit reports are being used.

All of these concerns show the significance of accurate credit reports. While errors and problems with credit reports can affect many aspects consumers’ lives, the greatest impact is in insurance.