The payday loan industry has always been big business. There are more payday loan lenders than McDonald's franchises in the US. In economic recessions payday lenders become a convenient option for cash-strapped borrowers who live paycheck to paycheck. The industry has been simultaneously lauded as an important resource that enables the poor to stay afloat on their bills and condemned as an unscrupulous exploitation of desperate people, similar to a loan shark.
When you look at case studies of borrowers who have received payday loans, the majority end up in a significantly worse financial situation than when they started. CBS did a segment on the industry last year, and reported one case wherein a woman ended up owing $1,500 in interest to float a base loan of $200.
With the advent of the Internet, the payday loan business has grown dramatically, virtually unchecked by regulators. Interest rates in this market have sky rocketed to unprecedented levels of 500% - 700%. The Senate is currently reviewing legislation to place caps on online payday lenders.
The video below is an excerpt of the CBS special that aired in July of 2008.
Friday, July 10, 2009
Monday, July 6, 2009
Consumers Beware: Mutual Consolidated Savings
Mutual Consolidated Savings, based in Tacoma Washington, is under investigation by the Federal Trade Commission and had its assets frozen this month.
The Company is being sued for aggressively soliciting debt-burdened consumers and charging up-front fees of $690 to $899 while providing little or no assistance in debt negotiation.
The Attorney General Robert McKenna made the following statement:
“Mutual Consolidated Savings has been the source of numerous consumer complaints,” McKenna said. “The Federal Trade Commission’s move to shut down its Tacoma call center means that fewer consumers will be misled by the company’s promises to bail them out of debt.”
The Better Business Bureau has has processed a total of 112 consumer complaints against the company during the past 36 months, which include fraudulent refund policies, contract dispute issues, billing or collection issues, sales practice issues, and difficulty in being removed from the company's call list, among others.
Have you done business with Mutual Consolidated Savings? If so, what was your experience?
Mutual Consolidated Savings
1215 Earnest S Brazill St Ste 33
Tacoma, WA 98405-4005
Ms Rachel Derricks, Service Manager
Phone: (800) 943-3250
Fax: (877) 669-9864
The Company is being sued for aggressively soliciting debt-burdened consumers and charging up-front fees of $690 to $899 while providing little or no assistance in debt negotiation.
The Attorney General Robert McKenna made the following statement:
“Mutual Consolidated Savings has been the source of numerous consumer complaints,” McKenna said. “The Federal Trade Commission’s move to shut down its Tacoma call center means that fewer consumers will be misled by the company’s promises to bail them out of debt.”
The Better Business Bureau has has processed a total of 112 consumer complaints against the company during the past 36 months, which include fraudulent refund policies, contract dispute issues, billing or collection issues, sales practice issues, and difficulty in being removed from the company's call list, among others.
Have you done business with Mutual Consolidated Savings? If so, what was your experience?
Mutual Consolidated Savings
1215 Earnest S Brazill St Ste 33
Tacoma, WA 98405-4005
Ms Rachel Derricks, Service Manager
Phone: (800) 943-3250
Fax: (877) 669-9864
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