If you want a cash advance or payday / paycheck loan, The lender will usually receive a personal check. Some companies use your bank account or credit card, in addition to or instead of a check. This means that you have to write a check to be charged or should agree to have an amount withdrawn from your bank account on a given date in the future (usually 14 days). After filling-in the agreement or contract to which a sum of money that is less than what they have agreed to pay. The sum is smaller because the difference is the “quota” for the loan service.
Why loan the company money like this? Due to lend money in this way and getting these “fees” really brings a huge profit at their expense. If we assume that you borrow $ 200 and the “fee” is $ 15 per $ 100, within 14 days will have to repay $ 230 to $ 200 that you borrow. If loans from $ 200 to avoid paying a $ 100 fine or punishment for something, then it’s worth the effort. But if you just need the money for himself, the price is too high. Simple math shows that you are paying interest of 15% for a 14-day loan. That means $ 3,785 per year compound interest. So now you can understand why lenders are very happy to give you money.
If you borrow $ 100 and you pay back $ 15 more in just two weeks and the loan of $ 100 again along with the $ 15 I received from you, doing this for a year, which in turn, their $ 100 at $ 3,785. This is the proof he needed that is better for them to borrow money to them.
However, for the nearly 8 million people that ChexSystems h as on file, it is a very real problem. Many people feel very calm ChexSystems has become the elder brother of the banking industry. ChexSystems is a much needed service for banks. On average, financial institutions are affected with more than $ 1 billion in losses check fraud each year. And spend more than $ 200 million to prevent, detect and prosecute fraud investigation.
The criticism has been that there are no established guidelines for exactly what was reported to ChexSystems. It is totally individual member banks. There are no procedures to distinguish between the person who may have had one or two incidents of unintentional overdrafts? and the person who actually committed a serious act of fraud and passing numerous checks on a closed account. Depending on the internal policies of a particular bank, a person may have their account closed and reported to ChexSystems for as little as a check. Once on ChexSystems are treated all alike, and the record can remain for five years. Bank executives defend the ChexSystems database as a valuable weapon in the fight against fraud and subprime.
To help prevent fraud and abuse of the account, banks and other financial institutions are based on information from ChexSystems. They say it helps keep banking services accessible and widely available to the general public. ChexSystems is also licensed as a collection agency debt. They have a separate department to help participating members to collect on unpaid accounts. It also makes them subject to the Fair Debt Collection Practices Act (FDCPA) While ChexSystems is the basis of data used by the banking sector, other similar systems, such as TeleCheck, and National Data Protection Check and verification services. If you recently been denied from opening a checking account due to a negative ChexSystems report, you are entitled to a free copy of this report. To contact ChexSystems by mail: ChexSystems, Inc. Attn: Consumer Relations 7805 Hudson Road, Suite 100 Woodbury, MN 55125 Phone: 800-428-9623 or by fax at 602-659-2197 Greg Ford is the owner and webmaster Additional information regarding options for people in ChexSystems can be found there.
Americans are more concerned about identity theft than unemployment or corporate fraud, according to a survey of 2,000 people conducted by stellar systems. Nine out of ten Americans demand new federal legislation, while two thirds say the financial services industry must do a better job of verifying the identity of customers opening bank accounts (66 percent) and card accounts credit (72 percent). Approximately 5.6 percent of respondents reported being victims of identity theft, resulting in 12 million. When the debit card fraud and credit and identity theft combined, about 15.9 percent of consumers say they have been victims of these crimes. (Source: Star Systems, 2003) For most of us, using your debit or credit card to make a purchase has become a day in all aspects of life. Many of us do every day and feel safe to do so.
But it is far from certain. People with your debit or credit card can make purchases with your credit card information over the phone, online or at a local store. As we went to a cashless transaction by debit or credit card, a niche of crime has grown relatively simple? identity theft and fraud. Some police authorities are not carrying out the crime in a coordinated and cooperative. Therefore, a situation that has grown offers people who commit these acts of theft and fraud, to act with a degree of confident that they will not catch. What can you do to reduce your chances of becoming a victim of identity theft or fraud? Here is a list of actions you can take to avoid falling victim to identity crimes.