Leadpile's Blog» fees

Is Free Checking A Thing Of The Past?

Natasha Aronov — Wed, 20 Jan 2010 14:52:08 +0000

Opening a checking account with no required balance or no monthly service fees may be something that is soon going to be history. With the suffering economy, there has recently been lots of discussion and controversy surrounding overdraft transaction fees, as a new federal regulation is expected to eliminate them. To make up for these losses in revenue the banks are looking into adding additional fees to checking accounts to help fill the gap.
According to Bankrate.com effective July 1st overdraft coverage will be an opt-in service. “Banks that offer overdraft, or bounce, protection will send opt-in notices to customers explaining the service. Banks will not be allowed to charge a fee for paying an overdraft that occurs because of an ATM transaction or a one-time debit card transaction unless the customer agrees. The rule does not apply to overdrafts that occur through the use of checks or ACH transactions such as bill pay.”
Overdraft fees have affected millions of people during this hard time and often times can be looked at as making a hard situation harder. Here at LeadPile we connect consumers possibly needing help to avoid banking overdraft fees or late payments with payday loan lenders who can loan money for a period of time to get them through. We will keep an eye on any new developments with this and let you know when changes occur!

Credit Card Interest Rates At 79.9%… REALLY?

Mari Holt — Fri, 18 Dec 2009 21:10:53 +0000

It seems that we have a new winner on the highest credit card interest rate to potentially charge a consumer…….. 79.9%! It appears that First Premier Bank has a credit card available to subprime consumers, however the potential interest rate can exceed 79%. It seems that there are fees being charged to the consumer that were more than the allowed balance (first year fees of $256 and the maximum line of credit is $250).
Does this mean that since there are a lot more credit challenged people these days, that this sort of credit card is going to be their only option? On the other hand if someone is not able to get any money elsewhere and really needs to start establishing their credit, then this could be their only option. I am sure giving out money to those that can not get credit anywhere else is a risk in itself to First Premier Bank, and charging higher than normal interest rate is something that have to do, but really 79+%? I think having a credit card interest rate this high, just seems a little excessive. Pat on the back to those that are willing to lend and give money to those that can not get credit elsewhere, but can’t you be a little nicer than 79.9%?

ATM’s Not As Convenient As We Think

Natasha Aronov — Fri, 04 Dec 2009 03:11:32 +0000

Almost everyone goes to the ATM to take out cash on a regular basis. Most of the time we do not even think about the task because it has become second nature. But have you ever found yourself in a situation where you need cash and you can find every other banks ATM, but not yours? It is not a big deal going to an ATM other than your own until you see that they are going to charge you around $3.00 to complete your transaction. Then on top of that your bank sometime charges you additionally for banking elsewhere. Over time all those fees can really add up!
Is anything currently being done to lower the fees or get rid of them at all? Currently, the Federal Reserve is reviewing the matter of the rising fees. This all started to come to the service when Bankrate.com found that out of network bank fees rose 12.6% from last year. Where every dollar counts these days, it would be great if the bank fees were eliminated or at the least, decrease. It should not cost an individual $5.00 to take out $20.00.
Here are some useful tips of how to avoid these fees:
1. Only withdraw money from your OWN bank
2. Use your debit/credit card
3. Get cash back when you are at the store
Maybe we should all go back to the old school way of banking… use a piggy bank!

Fed Imposes New Rules For Bank Overdraft Fees

Mari Holt — Fri, 13 Nov 2009 14:07:23 +0000

The federal reserve has officially implemented new rules that governs the overdraft fees our nation’s banks can charge. Thursday, a ruling was imposed to make it harder for banks to add overdraft fees to customer’s accounts. Banks will now be required to have a consumer opt in for overdraft protection programs, therefore if you do not opt in for this service you will not have a transaction processed if the funds are not available. Many consumers depend on the fact that their bank will let a charge be processed on their debit card, with the assumption that they will just get charged a fee for that. Well starting in July 2010, that will not be happening. Banks will have to say bye bye to the 25 billion dollars a year in fees they collect on these sorts of transactions. No more spending money you don’t have people…. Let’s see where the banks try and make up for this cash cow loss.

Banks Under Fire For Their Fees

Mari Holt — Wed, 23 Sep 2009 03:14:46 +0000

Many conversations recently have involved payday loans and how they are just not right for consumers, yet articles like this one today make you think that maybe a payday loan is not really a “bad” option for a consumer. With this recent news that banks are under fire for the insane overdraft fees they charge consumers, payday loans are looking pretty good right now. Banks are projected to be generating up to $38.5 billion dollars in fees being charged to our nation’s bank customers. Congress is not liking this, and is looking at cracking down on all the banks that are charging these fees. What appears to be happening is consumers are using their debit cards and not having enough funds to make the purchase, yet the banks allow the transaction to take place and then charge the large overdraft fee. Maybe banks should not allow these sorts of transaction to take place, which in turn are getting the consumers more and more in debt?

Omaha World Herald says Payday type loans necessary?

Mari Holt — Wed, 21 Jan 2009 03:12:52 +0000

A recent post by the Payday Pundit brings light to an interesting article in the Omaha World Herald. This article draws a comparison between the payday loan fees and the health care industry. According to the Herald, “A study of payday loans in the Omaha area concluded that more than $19 million in excessive fees were not spent in other ways last year, with the health-care industry bearing the brunt of the lost dollars.” The article also goes on to say payday loans should not be banned because the alternatives are even worse for those states that have payday loans outlawed. I am confused? Do they want to keep payday loans or get rid of them?

Leadpile Lead Exchange is always looking for news going on with different states in the payday loan industry, however I am a little unclear if this is a article to promote payday loans or an article against payday loans? How do you see it?

Is It Time To Refinance?

Mari Holt — Tue, 23 Dec 2008 21:30:41 +0000

Interest rates have gone down, and now many are wondering if it is really that time to refinance their home. The answer is YES. Not all situations are ideal to do a refinance, however there are things to look at with regards to entertaining the idea of refinancing your home right now.

According to ABC news, here are some common questions consumers might want to know before trying to refinance their home.

1. How much will a refinance cost?
2. Will a refinance save you money?
3. What kinds of loans are out there?
4. What are some common pitfalls?
5. What is the difference between a loan modification and a refinance?
6. If I have a prepayment penalty, should I still refinance?
7. If everyone wants to refinance, is the lending industry able to handle this rush?

Leadpile Lead Exchange generates a large volume of refinance (homeowner), loan modification, debt and home purchase leads. These are all consumers that are in this process of trying to determine what their best option is. No matter what the decision is, asking questions is key to knowing what is the best option for you and YOUR situation.

Payday Loans, A Healthy Alternative

Mari Holt — Tue, 25 Nov 2008 14:02:23 +0000

Over and over I am bringing the attention to the payday loan industry, and really how it is not necessarily taking advantage of consumers. I couldn’t resist a good post on the Payday Pundit, who brought up some good points about a payday loan.

“Let’s consider some alternatives for the working mom who is short $100 until payday, 14 days from now. She could get a $100 payday loan, pay $15, and the APR for that two week loan would be 391 percent..

She could also choose to write a bad check and pay an average of $48 in NSF and merchant fees. That would be a comparable APR of 1,251 percent!

Even if she has courtesy pay with her credit union, the average fee is $25, or an APR of 650 percent. Another option for her might be to not pay the $100 minimum balance due on her credit card, resulting in a $26 late fee—678 percent. If she chooses to not pay her $100 utility bill which may result in a $50 late or reconnect fee, that’s a comparable APR of 1,304 percent!

The argument can be made that by securing a payday loan to solve her cash flow needs, this woman is taking a proactive approach to her financial dilemma.

The Center for Responsible Lending indicates the 11 states that banned or limited payday lending saved consumers $1.4 billion in fees in 2006. But eliminating local payday lending activity does not eliminate the need for emergency cash loans. People still come up short prior to payday and the center does not address how these consumers managed their cash-flow problems. If they had to use one of the other alternatives, or had to drive to an adjoining state that made payday loans, or used the Internet to get an even higher priced loan, it is possible consumers in these states paid even more to solve their cashflow problems.”

This just keeps going back to the fact that there are bad with everything, and if you abuse the use of a payday loan you will NOT be in a better position. However, as Credit Union National Association and the National Credit Union Foundation state there are other alternatives that could be worse for a consumer. Education is key with payday loans and any other type of financial solution customers choose to take.

Question is, the holidays are now here and there are going to be families that need those gifts and food on their table. Is the payday loan the smartest solution for that consumer? Leadpile Lead Exchange will be here no matter what the answer to that question is, to provide the service to the consumers that DO need this temporary loan.

Receive Payments Faster: LeadPile’s MasterCard!

Mari Holt — Thu, 30 Oct 2008 16:09:11 +0000

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Partnering up with Revupcard is going to make getting paid commissions that much easier for our Leadpile sellers!

Fees Associated With Payday Loans

Mari Holt — Wed, 29 Oct 2008 14:10:28 +0000

Time is running out for consumers to read up on all the popositions being presented to them on the November 4th ballet. One thing that is being voted on in the states of Ohio and Arizona, is in regards to payday loans. How much does everyone really understand about payday loans? One myth I thought very important to point out:

Myth: Payday lenders hide fees and mislead consumers.

Fact: Just like any other service or loan you obtain, there is a cost to do get that loan or service. In addition, any payday loan you take out there will be a cost to taking out the loan. According to the CFSA website, “The cost of a payday advance is fully disclosed to customers on signs in the stores and in disclosure agreements. Moreover, in accordance with the Truth in Lending Act (TILA), the terms of the loan are clearly outlined in the lending agreement. Payday advances involve single, flat fees and there are no hidden charges, balloon payments or accruing interest. CFSA members also provide an educational brochure emphasizing responsible use of the product and offer a free right of rescission should the customer change their mind.”

CFSA also went on to say that in a recent survey 96% of the people were aware of the fees associated with taking out the payday loan. Just like with any other loan, there are documents presented to the consumer with all the fees of doing the loan in black and white. Are people sometimes just so anxious to get a loan, that they do not take the time to read the documents they are signing?

Leadpile Lead Exchange wants consumers to read everything before agreeing to take out a payday loan, or any other loan. Knowledge is power!