25 Sep
Posted by Danielle Cook as Credit Cards Articles
As Rubidoux foreclosure defense lawyers, we know all about the terrible effect a rash of foreclosures can have on a community. Particularly in Riverside and the Inland Empire, large numbers of foreclosures have left neighborhoods empty and rundown; recent reports said a vacant Glendale home was even colonized by coyotes. This in turn brings down the values of the properties in the area that have not been foreclosed, because their neighborhood is perceived as less desirable. That was the theory of liability in the proposed class action lawsuit Maya et al. v. Centex Corp., in which homeowners sued eight large homebuilders for allegedly marketing and selling loans to high-risk borrowers, and making false representations. The district court dismissed the case, but the Ninth U.S. Circuit Court of Appeals resurrected it, finding the decreased value of the homes was enough to give them standing to sue.
The plaintiffs put 20 percent or more down on new homes between 2004 and 2006. In their lawsuits, they claim the builders falsely represented that the neighborhoods would be stable and owner-occupied, implicitly guaranteeing that they would sell the homes to people who could afford them.
It’s not uncommon for someone to complete and submit an application for a loan, and then have a lender reject the application. Rejected loan or credit card applications result from failure to meet lending guidelines. But rejected applicants can usually get a loan if they have a co-applicant. If approached to sign a loan for another person, you need to understand how this arrangement can affect your credit.
Co-applicants, also referred to as co-borrowers and co-signers, are often necessary for a loan approval. Creditors may require a co-applicant if the person applying for financing has a low credit score, minimum credit history or not enough income to meet the lending guidelines. The person chosen must submit personal information to the lender for review, such as a W-2 statement and Social Security number for a credit check.
During the June quarter more Australian Businesses have gone to the wall than in prior periods. This is certainly in line with international trends both in Europe and in the US.
Despite business bankruptcies and insolvencies dropping away to their lowest levels globally, Australia recorded a 12.1 per cent increase in business failures in the June quarter up from 4.1 per cent in the previous quarter.
25 Sep
Posted by Jacob Stewart as Credit Cards News
A new report from McKinsey paints a bleak picture for banks and supports the notion that banks need to adapt and adapt in a significant way. Their survival is at stake. The banking and economic crisis just brought banks deficiencies to the fore.
This extract from the intro page to the McKinsey study (emphasis mine) highlights that shifting consumer practices plays a role in the falling fortunes of banks. The banks who choose to not redesign themselves will be relegated to utility banking, which looks more and more, certainly in Europe as involving direct government ownership.
The state of global banking—in search of a sustainable model McKinsey
On its face, 2010 was a good year for the industry. Global banking revenues reached a record $3.8 trillion, and after-tax profits jumped from $400 billion in 2009 to $712 billion—above their 2008 level, if not the 2007 peak. But this rosy picture did not necessarily imply a bright future for banks in Europe and the United States: 90 percent of the profit improvement was attributable to a reduction in provisions for loan losses, and most, if not all, of the good news came from emerging markets.
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As a result, investors have been reassessing the banking industry’s long-term growth prospects and rerating the sector. The maj
23 Sep
Posted by Danielle Cook as Credit Cards Articles
With many colleges and universities back in session after the summer months, students have a lot to deal with — which classes to take, with whom to make friends and where to live.
But, as the New York Daily News reports, they must also consider which credit card to get. Many college students get overwhelmed by debt, especially if they’re unable to find work. While a credit card can come in handy in tight spots, many students get through years of higher education not only with big student loan bills, but also mounds of credit card debt.
And this credit card debt can lead to a Chicago bankruptcy filing if students aren’t careful to avoid the pitfalls of credit cards, such as their short-term low interest rates that balloon over time as well as hidden fees that can make a purchase much more expensive that the sticker price.
Bankruptcy in Chicago can help students who get out of school drowning in debt. After spending four years barely getting by financially, finally earning a degree is quite an accomplishment. But then having creditors hounding for payments and making life miserable all while trying to build a career can negatively impact quality of life.