Now clarity on car lending fees – regulator

by admin on November 23rd, 2014

filed under Car Lending

The corporate regulator says a High Court judgement, on what is known as the Sportzone Motorcycles case, further clarifies what fees lenders are allowed to charge borrowers.

The judgement was a detailed, line-by-line ruling on which fees charged by Sportzone, and its financier, Motor Trade Finance, were reasonable and which were not.

Commerce Commission chairman Mark Berry said the ruling from Justice Toogood is the latest word on how credit fees may be calculated.

It follows an earlier ruling that some MTF fees had been unreasonable.

Dr Berry said the facts provide good case studies for lenders to consider.

Justice Toogood disallowed including the costs...

Family finances: year-end tax moves

by admin on November 23rd, 2014

filed under Finances

This is the time of year when many of us count our blessings, and if you own stocks and mutual funds, you may have a lot of blessings to count.

But eventually, most of us must share some of our good fortune with the IRS. As the year comes to a close, consider strategies to hang on to more of your bull-market bounty.

Bank Regulator Warns of Lax Standards on Auto Loans

by admin on November 23rd, 2014

filed under Car Lending

A major banking regulator is sounding the alarm about lax car lending standards that are leading to a new round of losses for banks.

There’s been a spike in the average size of car loans that banks and other lenders are writing off as a loss following months of unpaid bills by borrowers, an official of the Office of the Comptroller of the Currency, a unit of the Treasury Department, said in a speech at a collections-industry conference on Tuesday.

At banks, the average charge-off for a car loan was $7,618 in the fourth quarter of 2013, up 12% from a year ago, said Darrin Benhart, deputy comptroller for supervision risk management at the OCC, citing loan performance data...

G4S shares knocked by elaborate hoax regarding company’s finances

by admin on November 22nd, 2014

filed under Finances

G4S shares knocked by elaborate hoax regarding companys finances

Company confirms statement which contained links to fake website is
fraudulent

Ferrari Fined, Ally Probed, FX Investigation: Compliance

by admin on November 22nd, 2014

filed under Car Lending

Banks began setting aside money for
currency-rate rigging probes last week, with as much as $2.7
billion provisioned, indicating settlements are drawing near.

Royal Bank of Scotland Group Plc on Oct. 31 set aside 400
million pounds ($639 million) for the foreign-exchange probes.
HSBC Holdings Plc (HSBA) will set aside about the same amount when it
releases third-quarter earnings today, a person with knowledge
of the matter said, asking not to be identified as it hasn’t
been announced.

Citigroup Inc. (C) took a $600 million legal charge Oct. 30 for
foreign-exchange probes, and Barclays Plc (BARC) set aside 500 million
pounds for resolving...

Personal finance tips: The value of vacation days, and more

by admin on November 22nd, 2014

filed under Car Lending

The value of vacation days
Dont bother burning the midnight oil, said Bob Sullivan at Credit.com. While its no surprise that American workers often leave vacation time on the table, a new study from the US Travel Association found that clocking more hours at the office isnt likely to pay off. In fact, workers who left 11 to 15 days unused during a year were 6.5 percent less likely to receive a raise or bonus than those who used all of their vacation days. And if you need more motivation to cash in those unused days off, consider this: A separate report from audit firm EY suggests theres value in heading for the beach. For every 10 vacation hours an employee takes, EY found, annual performance...

How I Use Negative Feelings About Finances To My Advantage

by admin on November 21st, 2014

filed under Finances

I have never had much patience for dwelling. Time is a limited resource and I want to use it in the best possible way. Dwelling is a waste.

I also have little patience for sweeping things under the rug and pretending to be happy when Im not. Ignoring a problem is a great way to ensure it will come back to haunt you later. Plus, in the meantime, it looms in the background, ruining just about everything. Like dwelling, sweeping things under the rug is a fruitless use of ones time.

But it is certainly easy to give in to both. You can dwell on negativity, and you can ignore it just as well. Neither really accomplishes anything — in fact, they make things worse. Money...

Ukraine finances in jeopardy: IMF

by admin on November 21st, 2014

filed under Finances

A $17 billion loan may not be enough for Ukraine to manage its finances if the conflict with Russia continues, the International Monetary Fund warned over the weekend.

All parties involved in the Crimean crisis must work together, because its very hard to imagine how the finances of Ukraine can be kept under control [otherwise], the groups deputy managing director David Lipton told CNBC at the G-20 summit in Brisbane.

Read MoreUkraine economy in free fall

In April, the group agreed to a $17 billion two-year rescue package for Kiev with the aim of restoring macroeconomic stability. Yet that goal remains far off with the country in the midst of a currency crisis...

It’s getting easier to get a credit card with bad credit

by admin on November 20th, 2014

filed under Below Average Credit

Consumers with below-average credit scores have had an easier time getting credit cards in the last few years, compared to the immediate aftermath of the financial crisis when credit availability was very limited. Still, credit availability remains below pre-recession and recession levels, according to a report from the American Bankers Association: There were 330 million outstanding credit card accounts in the first quarter this year, compared with 380 million at the same time in 2009, 427 million in 2008 and 374 million in 2007.

As the credit industry opens up after several years of limited access, borrowers with subprime credit (ie the borrowers with low credit scores) have seemingly...

Creditors use new devices to put squeeze on debtors

by admin on November 19th, 2014

filed under Car Lending

Let’s take that unintended-consequences logic seriously, in the other direction. What happens if remote monitoring and disabling become a deeply rooted practice in car lending? And what if the repossessed cars are worth less than the value of the loan on them? Should we allow further contingency planning for lenders — say, automatic garnishment of wages? Electric shock devices implanted in the skin for gentle reminders to pay your bill and not drive outside the approved area? These might really cheapen the cost of credit.

Those possibilities will, of course, be dismissed as a slippery slope — even though a new gadget called the Pavlok wristband already offers worrywarts...