Leadpile's Blog» fees

Fed Imposes New Rules For Bank Overdraft Fees

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

LeadPile is excited to announce that we have partnered with RevUpCard for Easy, Instant Commission Payments anywhere in the world!

If you already have a RevUpCard debit MasterCard and would like to start receiving your commissions from us on your RevUpCard, please let us know your Direct Deposit Account Number.

LeadPile RevUpCard MasterCard offers:
· Immediate Access to Funds (no waiting for checks in the mail!).
· No Standing in Line to Cash a Check.
· No more wire fees.
· Manage your money online with a click of a button.
· Offload funds to your Bank Account instantly from your computer, anywhere in the world.
· Receive Funds or Share Funds from or to other RevUpCard Cardholders
· Use your RevUpCard anywhere MasterCard is accepted Worldwide!
· Withdraw cash at millions of ATM’s globally.
· No Overdraft fees!
· Everyone Qualifies Regardless of Credit. Get your RevUpCard today!
· RevUp Rewards Program (coming soon) – Your RevUpCard will be good for up to 50% off on purchases at over 200,000 participating businesses.

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

Fees Associated With Payday Loans

Mari H. — 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!

Should Lead Buyers Provide Conversions On Puchased Leads?

Mari H. — Mon, 27 Oct 2008 15:06:47 +0000

Exchanges, marketplace, networks, lead providers, lead generators or all the above are places any advertiser/lead buyer can purchase leads. How ever or where ever you get your leads, there are going to be variations in the conversions you have as a advertiser. Why is this? One large factor is the end user- the person/company that purchases the lead has a major affect on how well purchased leads convert.

A recent article on Lead Market Watch brought up some good points about lead buyers providing performance data to the lead provider. As a lead buyer, you want to get the most amount of leads at the least amount of cost to your company. Also, having the highest conversions to sales with the least amount of money invested in these leads is very important. Therefore, would you be cutting off your own feet if you provided how the leads are specifically performing to the company that provided them to you? When things aren’t going so well, the natural thing to do is always complain and express that. However, should you tell the lead company what the results of these leads was, in order to provide them with specific information on the lead providers bringing in the leads? Would providing this information eventually promote the exhange/network etc to increase the cost per lead if they are seeing the specific success you are having? These are a lot of tough questions that I am sure have a lot of different opinions on.
Here are Leadpile Lead Exhange we welcome lead buyers to provide conversions to us and also any potential issues with the leads. The more information we have on the leads the more we can help the next guy that is wanting to buy leads from us.
On a side note, each buyer of leads is going to have different ways of working leads they purchase. Knowing that, it is hard to actually compare apples to apples with leads. Knowing overall specifics of the leads and the companies buying them, will also help us to see any sort of consistancy on that lead type.
Some other questions lead providers might be curious to know are:
1. How long is your sales cycle?
2. How quickly do you call the leads you purchase?
3. How many times to you call the leads?
4. How many leads does it take for your company to get an application?
5. How many applications does it take for you to get a sale?
6. Approximately what kind of cost/fees does the customer absord for your service?
This information can be very helpful to any company that is providing leads, however there could be some information that is just not something that the lead buyers want to provide.

FACT or FICTION: Regulating The Payday Industry

Mari H. — Wed, 22 Oct 2008 14:16:14 +0000

The payday loan industry is getting a lot of attention, especially in the states of Ohio and Arizona. Those on the outside possibly do not fully understand the payday loan industry and there are some misconceptions about the short term loans.

Myth: Payday loan lenders do not want to be regulated.
FACT: According to CFSA, this is quit the contrary. Most payday lenders do want to be regulated and have certain industry guidelines. However, there are those that are trying to eliminate the industry as a whole, and not deal with keeping the “good guys” in business.
Currently, there are 37 states + the District of Columbia that have payday regulations. CFSA is working on trying to get regulations implemented on the remaining states, however they are not wanting to see the industry go extinct. Therefore, the question is… why is the payday loan industry going through such tough scrutiny, when in comparison with credit cards and other financial services there are similar costs/fees associated with them?
Leadpile Lead Exchange understands there are a lot of myths about payday loans, however the key is for those that are not fully educated on the industry, to read up to fully understand all aspects of this financial product compared to others. There is good to these types of loans, and they are sometimes very much needed.

Consequences of Banning Payday Loans

Mari H. — Tue, 07 Oct 2008 15:29:21 +0000

With all the regulations going on with different states, I thought this was an interesting article about the effects banning payday loans had on consumers in NC. According to The Community Financial Services Association (CFSA) website, banning payday loans in the state of NC is affecting consumers. The reality is that most that are trying to get rid of payday loans in these different states, have never needed a payday loan.
Understanding fully what payday loan consumers are going through, does not seem like a reality to those trying to ban them in the different states. Do those that are trying to ban the payday loans understand what taking them away is going to do? Do they understand that some credit cards are a much more expensive option for the consumers? What are some other options available to consumers in place of a short term payday loan? Are they prepared to offer these other alternatives to the consumers, to help them get out of this temporary situation?
In the state of NC, there seems to be some effects with the fact that payday loans were banned there. According to this CFSA article, “In fact, respondents’ answers to the survey clearly show that the elimination of payday loans in North Carolina did nothing about the demand and forced consumers to replace payday loans with costly, less desirable and even dangerous options.” Overall, states with either pending regulations or those states trying to regulate, should maybe look at the overall picture of the payday loan industry. Some don’t CHOOSE to get a payday loan… they might have no other option. Leadpile Lead Exchange understands their are consumers needing a loan to fix a temporary financial situation, and we have the lenders/buyers available to provide that much needed loan to the consumers.