Use Cash Advance No Credit Check Lenders When The Chips Are Down

Finding a cash advance no credit check lender is pretty easy. You can use an online direct lender or visit a local storefront location. Finding the alternative money opportunity is rarely the problem with the short-term loan industry. Connecting to one that you can afford and offers flexible payoff terms without additional outrageous fees is another. It is very important that you find a responsible lender in order to keep additional troubles out of your credit report.

When your credit score has fallen into a sub-prime category or you have yet to build enough credit history to support a good one, you are very limited when it comes to money help. Creditors will often supply a credit card but the credit limit will be low and the interest is much higher than a typical cardholder. These companies are testing you out and will eventually increase your limit with a history of on-time payments. This does not always ring true with your interest charge. It never hurts to ask the creditor directly especially if you can prove a steady positive increase in your activity.

No credit check lenders do things differently. The rates are not determined per applicant, they are a one-size fits all charge for each payday loan. In order to get a lower rate, you will have to shop around for a lender that provides competitive prices. Be careful to ask lots of questions during your search. It is always best to get the answers cleared up before your loan is processed. Well-explained answers will give you good insight into the way a company handles its business dealings with their customers.

A very important matter to address with the direct lender first hand is to ask about payment flexibility. Let’s face it, when you obtain a fast cash loan it is because your budget is not in a healthy state. For many borrowers, it takes longer than just a few short weeks to get their finances back on track. The more you understand what will happen when you can’t pay it off on the original due date the better. Some lenders may have you apply for an additional loan while others will offer roll-overs or extensions. For other lenders, options equate to additional fees. A responsible direct lender will charge interest fees very similar to how a credit card company would. You will have to pay the fees for that period and for each period thereafter. This same lender would accept payment towards the principal balance at any moment without additional charges. Unfortunately, there are many lenders that will take advantage of a customer’s struggle and add many different costs to the total balance.

Get the full scoop for your no credit check cash advance payoff options. Just because a lender’s fees are lower than everyone else’s; it doesn’t mean that they won’t find a way to collect.

-Watch out for lenders that discourage payment options.

-Make sure there are no application fees.

-Ask about free early payoff (besides interest).

-Ask about any interest rate hikes for extending or rolling over your loan. A good lender wouldn’t do that.

-Make sure there are no penalties in addition to interest payments when your loan is not paid on time.

Just because you need a no credit check cash advance, it doesn’t mean you have to be subjected to endless charges. When money troubles have you cornered, there is a fast cash advance will help, especially if you have done your homework to find a responsible lender before you start filling out applications. The last thing you want is to be taken advantage of when you are at a weak point. Make your efforts worthwhile and go the extra mile by calling lending companies ahead of time.

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$5,000 Personal Loans For Bad Credit Borrowers: Alternative Sources With Considering

The chances of securing a loan of any size can be tricky if the applicant has a very poor credit history. Low credit score tend to make lenders hesitant, especially traditional lenders. But there are options available, with a $5,000 personal loan for bad credit borrowers often a matter of looking at alternative loan sources.

Since the credit score is not the key influence in any loan application assessment process, the chances of getting the thumbs up always possible. Of course, even the lenders willing to grant a personal loan are accepting a risk, and this means terms are not always going to be ideal.

When an injection of funds is so badly needed, getting approval for $5,000 loans is the principal concern. Unfortunately the terms offered by many lenders are not exactly ideal, but there are some alternatives to the traditional option that are worth considering.

Online Lenders

The first option worth considering is the range of online lenders that specialize in lending to bad credit borrowers. In fact, the chances of getting approval on a $5,000 personal loan for bad credit borrowers are much stronger with them. But these too will expect applicants to accept some compromises.

The most obvious is that the interest rate charged will be higher than the rate charged under normal circumstance. The good news is that it is still less than what traditional banks charge, making it a more affordable option. So, as a competitive personal loan option, they are very attractive.

Of course, it is still necessary to satisfy the set criteria. To get approval for $5,000 loans it is essential to prove a dependable and regular source of income, and that the full-time job has been held for 6 months at least.

Payday Loans

This is perhaps the most expensive option, but also the fastest and most likely to get approval on. The speed of approval can be just a few minutes, and is down to the no credit check policy that is usually in place. As the name suggests, a payday loan is secured against an upcoming paycheck, so it is a highly accessible $5,000 personal loan for bad credit borrowers.

The catch is that these loans are very limited, with a maximum sum of $1,500 attainable. The repayment is also usually one single payment, and the interest rate is usually extremely high (30%). So, in order to get a sum of $5,000, a series of successive payday personal loans may be necessary.

Also, the term of these loans is very short, usually between 14 and 30 days. It means that repaying the loan in full is done in one single payment from one paycheck. This needs to be considered before applying for the loan. When seeking approval for $5,000 loan, a 4 or 5-month term might be negotiated.

Online Loan Bidding

A third alternative is the very modern phenomenon of loan bidding. This is where a loan is secured from individuals who are willing to bid the best terms to lend to the borrower. For a $5,000 personal loan, for bad credit borrowers with poor credit histories especially, it is a viable option.

The process is to post a loan proposal on a website then examine the bids to secure the best one. Securing a personal loan this way is rather straightforward and the interest can be very competitive.

But it is important to remember that there is risk with this option too, with bank details required by these lenders before approval for $5,000 loans can be granted. They are also outside the credit system, so no improvement on your credit score can be recorded.

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The Meaning Of A Bad Credit Loan

A personal loan offered for bad credit to customers is a bad credit loan. Its repayment terms are not fixed and hence it will suit the person who takes the loan. In a way it is like taking the first step towards rewriting your credit history. If the person is above the age of 18 and a permanent resident of the country, and who is employed, then he is eligible to apply for this loan. They may need to use it to pay for some important personal event.

The Options Available If A Consolidation Loan Is Not Granted
If one is applying for a debt consolidation loan, it will not be granted if you have debts to clear and also a bad credit history. The lenders do not think that you will be able to pay back. The only options available for you are Personal Insolvency Agreement or Debt Agreement. There are a few people who are ready to sanction a personal loan even with a bad credit history, but then you will be charged a high rate of interest. A few kinds of bad credit loans are payday loans, car loans and home loans

Other Options Available For Repayments Of Debts
A debt agreement is another option available for those who cannot pay back the entire amount of debt, but have funds to repay a part of it. If you are not able to get a personal loan because of bad credit history, this is a good alternative. All the debts are brought under one umbrella. All loans that are not secured like old utility bills, credit cards, personal loans, repossessed cars, will be pooled together. You are required to make one regular payment weekly, fortnightly or monthly. No legal action can be taken against you and there will be a freeze on the interest charges. Finally whatever you cannot repay is cancelled.

The Concerns Of Proposing A Debt Agreement
Since the person who intends a debt agreement, commits an act of bankruptcy which means that if the proposal is not accepted by the creditors, an application can be made to the court to declare the debtor bankrupt. The debtor’s chances of obtaining any loans even personal loans for bad credit will be affected since his name will be mentioned in the credit reporting organisation’s records and this will remain there for about seven years. Secured creditors can sell any asset that was offered as security in case of a default. The payments made towards unsecured creditors are only in proportion of their debts. Debt Agreement should be applied for, only if there is no chance of repayment of loans on time, otherwise debt consolidation is better.

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From Checks to Cash: The Basics of Check Cashing Services

The idea of using and issuing check has gotten a notch higher. Now, people are no longer required to head to banks to have the check cleared, deposited, or encashed to the individual whose name bears it. A growing industry that offers check cashing services is now gaining ground to help people have a quick access to cash when a check has been issued. The money service industry has gotten larger and this is one of the latest additions to the range of services one can avail.

So, how does this check cashing system work?

Well, it is relatively simple. A person whose name appears on the check can go directly to any of these check-cashing providers. The business will then have to make the necessary verification of the identity. The person may be asked to provide at least two identification cards and/or a bank account. Upon verification, he will be asked to endorse the check and the business will then deposit the amount, less all the deductions and processing fee directly to the bank account. Most of the check cashing business also offer affiliate businesses such as payday loans, bill payments, and money order cashing. The processing fee may vary and some check cashing enterprises may likewise impose a minimum amount.

Advantages of using Check Cashing Services

• This method is advantageous to people who do not have any existing bank accounts. As banks tend to be relatively stricter in handing out cold cash, having to endorse the check to a legitimate business would be more convenient.

• Queues in banks can be extremely time-consuming. Having to spend the entire morning at a bank is not only inconvenient but would require so much effort especially for those who work during banking hours.

• You can have quick access to your money even on a bank holiday. Most check cashing businesses are open seven days a week. They also usually have online portals where your questions can be accommodated any time of the day.

• If there is no check cashing businesses close to your house, simply head to Walmart. They offer check encashing for a minimal fee. A $3.00 fee is deducted to checks, payroll checks, money orders, and tax checks amounting to $1000 or less. For larger amounts, a fee of $6 is deducted. Note that they only encash checks with a maximum amount of $5000. If you live far from Walmart, you may opt to check with major retailers close to your area such as 7-11.

• If you do not have a bank account where the money can be deposited, ask if the check cashing business offers pre-paid card loading system. This is another option. However, this would require activation fee of usually less than $10 per card.

Disadvantages of using Check Cashing Services

• The fees may be quite high. For instance, losing 3% of the check amount of $5000 could instantly mean losing $150 dollars instantly.

• Bounced checks can result to a major legal problem for the person who requested for the check endorsement.

• Not having the right identification card may likewise be a problem. Misspelled names and illegible penmanship on the check can also be questioned by the cashier.

How to put up a check cashing business?

As any type of business, registration and licensing are paramount. There are federal policies as well as local or state policies that have to be considered. As a general policy, any business that entails cashing for a fee fall under the Money Service Business or MSB. The business is required to use approved and checked bookkeeping methods. You are likewise expected to provide your list of agents and any reports that may be associated to money-laundering cases. Having a lawyer to help you with the process is highly recommended. Note that aside from the federal and state laws, the business must comply with the Patriot Act and Bank Secrecy Act as well.

As part of the business establishment process, you also need to identify your own check policy, especially if you intend to branch out someday. The policy fundamentally offers a quick list of which type of checks are you willing to cash out. Examples are money orders, payroll, personal, business, out-of-state or government checks. On top of these, you also need to identify which ID you would require your customers to show – driver’s license, government-issued, passport, or company ID’s.

As money service businesses are also considered high risks, you only need to conceptualize which type of cashing method you would employ. It is encouraged that ‘cold cash’ not be used for any transaction. Debit cards and other PIN-enabled cards are good options, too. Loading ATM or pre-paid cards are advised. In addition, ensuring that your establishment is equipped with 24-hour security system, surveillance cameras, sensor-sensitive doors, and bullet-proof glass would also help.

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Instant Loans Cash- Keeps Finance in Order Till the Next Financial Replenishment

There is a tendency among people to keep their resources in a form that is not easily cash convertible. The arrangement holds good till the individual is faced with an exigency involving cash. This is the time when the individual is led into a tight spot; with little hope from ones own personal resources because they will take time to be converted into a liquid state. Instant loans in cash form will be the need of the time.

Instant loan for cash is also useful for individuals who have already finished their monthly paycheque and need an immediate cash replenishment to meet several expenses that demand an instant fulfillment.

So what is an instant loan for cash? Isn’t this the question that is bothering your mind? If yes, then the following article will be very informative for you.

Instant cash loan is a loan, with the loan provider and the borrower forming the two parties to the loan contract. With this, the similarity of instant loans cash ends with the regular loans.

Most of the regular loans are taken in order to avail of larger resources. Secured loans, for instance put thousands of pounds in the hands of the borrower. Similar is the case with car loans, education loans and bridging loans. Instant loans cash on the other hand are taken for comparatively smaller amounts. Instant loans cash are more similar to payday loans where the amount drawn is to be used for regular small expenses.

It is also because of the minor amount involved that the fast loan in the UK is approved immediately and without much hassles. The instantaneous approval is what gives instant loan cash a distinct status. Borrowers are promised the fast loan in the UK within 24 hours. This means that they can expect a credit to their bank account by the next day of application. This is the method by which the proceeds of instant loan cash are received. It also forms a part of the eligibility criteria expressly stated by the loan providers. Other qualifying criteria for instant loan cash includes:

o The loan borrower must be employed.

o Remuneration received from the employment must be deposited directly into a bank account of the borrower.

It will be important to discuss with the loan provider chosen up to what time will the fast loan be approved and sanctioned. Though applications for instant loans cash are available 24 hours through an online website, applications made up to a certain time period may only be considered during a day. If you know what is the time till which applications are considered for approval during a day, you can easily time your application.

Another distinct feature of instant loans cash is that the repayment term is small. Like in a short-term loan, one needs to repay the instant loans cash in a very small period. This may be a week, a month or a maximum of six months till which borrowers are given extension in repayment terms. This may however, differ with lenders. Some lenders are ready to increase the term of repayment when the borrower is facing certain exigencies. A shorter repayment term will be viewed as advantageous by some people who feel that paying off the fast loan UK early will be better than bearing the burden for several years.

The downside to instant loans cash is the high rate of interest that it carries. Whatever you thought to gain from a shorter term of repayment is eroded through the high rate of interest. Being a short-term loan, the higher rate of interest is no rarity. It is expected. The best method to keep the interest cost in check will be to repay it as soon as possible. If managed well, instant loans cash can help one tread through temporary periods of financial shortage as no other methods can.

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How To Buy Furniture With Various Credit Options

As necessity is mother of the invention, many look for opportunities in times of crisis. There will be some solution for every problem. People all over the world are working to finance their needs. People who are in dire need of money look for those who can make their work easier. Coming to the point, buying something costly needs money. So explore various options and arrive at a conclusion.

After the sub-prime crisis of 2008, industries took some years to get out of that shock. Real-estate and furniture business often go in hand in hand. The furniture industry received set back in that period. People felt a bit wary about the credit card system. But after signs of recovery, shopping malls and online sites witnessed more sales over the years. Many of the people can’t afford high-end furniture. But, one can find many options for financing the furniture. Whether it is online or brick mortar store, look for a credit option.

To clear the air, I will be discussing a few popular options here.

Linking Credit cards

Many sites and shopping centers provide this service to engage their customers. Every month the customer due got automatically deducted from the card. Though it comes with an extra cost, it is a simple and easy option provided everything goes fine.

Retailer Financing

The name says it all. Due to competition from online and offline businesses, some retailers and e-commerce sites are experimenting this option. They are offering good options in terms of repayment. And this option can be bait in some cases. So go through all the details carefully. If there is confusion about the volatility in the interest rate, leave this option.

Payday loans

These are a kind of short-term loans. Agencies providing such products charge exorbitant rates of interest. So while choosing this option, prepare for the next day.

Financing agencies

These are third parties which issue their own credit cards and debit cards to purchase. Now many financing agencies like Quickspark and Synchrony are coming with shopper-friendly financial products. They also help businesses to grow in multifold given the rise in credit purchases. The majority of purchases are done in this method.

Long-term products- For example, if the price of the sofa is 200$, with the long-term financing, the price of the product soars. It can even cost 400$ at times. So calculate everything related to the price and make a decision.

Financing should be beneficial to both customers and business organizations. The customers should calculate the risk. Customers with zero knowledge on this area can get entangled in many problems. It sometimes can be legally problematic besides confiscating properties.

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What Logbook Loans Behold for You?

Spectators foresee a strong future for short term financing, specifically logbook loans. The advances as compared to others falling under the same category are secured, for instance, payday loans are not backed by a security deposit, however logbook loans are supported by legal motor vehicle documents.

The surety for the loaned amount being returned has attracted many capitalist to invest in this particular sector, the investment has a limited risk involved, and yields high profits in a relatively short period of time.

Brighter future prospective is not forecasted based on the low risk the money suppliers are blessed with but on the growing demand for this particular financial product. The logbook loans are one of the most popular and highly demanded sources of funding in countries like the UK, USA, Canada, Australia, and New Zealand.

The financial market offers many other long and short term modes of personal financing, like running finance facility, short term credit for home furnishing, house building loans, car financing loans, and individual business loans; but none of these compare to logbook loans. The reason being that logbook loan is far easier and faster to attain as compared to the rest.

Companies that offer such financing facilities are noticeably present on the World Wide Web. The sites are designed to attract potential customers and to encourage them to apply for the particular product offered. The past records of internet based financiers reflect prompt injection of cash flows, and excellent service, that tempt people looking out for a source of funding.

Borrowers are required to fill in only some specific details, it takes a click or two, and a maximum of twenty four hours before the application is approved. The prerequisites are known to all those applying, and therefore, every case backed by, proof of regular income and legal papers of a vehicle, is approved. Applicants are saved from the hassle of visiting banks, proving their credibility, and filling the never ending paperwork; the entire procedure is tailored to provide maximum convenience.

The instant cash transacted provides the customers with the freedom to fulfill wants on an immediate basis; a high price is paid in exchange. Organizations extending credit, predefine the terms and conditions, where, the monthly payback amount, and number of installments are clearly mentioned. The onus for calculating the interest paid on money borrowed lies with the applicant; the cost of borrowing must be compared with the interbank rate of return, in order to know the excess charges borne for not deferring purchases.

An important factor that must never be ignored, before applying for a loan is the cash flow; prudence and better judgment are required while deciding to file in an application. Comparing monthly expenditures to the monthly income leads to cash left in hand, and fitting in the future monthly installments would paint a clearer picture for managing finances. One should pursue an application only if there are hundred percent chances of paying back the installments, not being able to return the capital borrowed would lead to confiscation of the vehicle kept as collateral with the funding organization.

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ID Authentication in Banking Applications

Global financial institutions are faced with a growing need to “know” – identify and authenticate – their customers, to prevent fraud losses, the funding of terrorism, money laundering, and tax evasion. Failure to comply with proper identification of the institutions customers can result in monetary losses, fines, and bad publicity.

Current ID Verification Practices at Financial Institutions

Financial institutions typically verify ID for the following types of transactions:

  1. Account Opening: The Patriot act initially required institutions to retain a copy of the ID presented during the account opening. This was subsequently reduced to requiring only the recording of key information proving that ID was verified (e.g. driver’s license number). While it may suffice to note the ID number, a simple clerical error, such as transposing numbers may invalidate the proof of the ID verification. Capturing the ID card during the account opening process confirms that the ID was verified, and opens the door for better subsequent interactions with the customer. Possibilities include: a) Adding the photo ID to a bank-issued debit or credit card, without the need for photo capture equipment. Small photo IDs are used by warehouse clubs in combined member/credit card applications. b) Showing the ID/photo, personal characteristics, and signature to the teller during a transaction to reduce ID fraud.
  2. Routine Transactions: Machine-readable identification cards (ID cards, credit/debit/ATM cards) can be used to identify a customer. The teller application can pre-populate information about the customer to speed up the transaction, and to create a more pleasant customer experience.
  3. Cash Withdrawals: ID cards are typically required for any cash withdrawal by a customer at a branch unless the withdrawal is at the customer’s home bank and the customer is personally known to the bank employee.
  4. Large Transactions: Financial institutions typically require multiple pieces of ID for transactions over a certain amount threshold, including transfers and deposits. This is necessary because losses can occur with large deposits (such as cashier’s checks) where the deposit is a forgery, but only detected after the amount was withdrawn.
  5. Check cashing: A recent FDIC survey (1) showed that 7.7% US households are unbanked, and over a quarter – 25.6 percent – of all households either don’t have a checking or savings account at all, or have a bank account but still choose to rely regularly on “alternative financial services” like payday lenders and pawn shops. Serving these customers can be profitable, especially in a tough economy, but require solutions to positively identify a person who is not a customer of the financial institution. This business is today largely handled by check cashing stores, pawn brokers, but increasingly viewed as an opportunity to bring customer into stores (such as convenience stores and gas stations) by offering check cashing services. In check cashing applications, the ID card is required for initial account registration and for subsequent check cashing transactions.
  6. Government Regulations: ID verification is required for any financial transaction that may require government reporting, such as in the US cash transactions over $10,000. In countries with foreign exchange regulations, transactions need to be reported by government ID number. Most foreign exchange windows require a valid ID.

Developments in Identification Documents

Post 9/11, it has become evident that government-issued identification (passports, national ID cards, driver’s licenses) were not sufficiently protected against forgery. The 9/11 Commission recommended that the U.S. improve its system for issuing identification documents, urging the federal government to set standards for the issuance of sources of identification.

For international travel, the International Civil Aviation Organization (ICAO) issues a standard for biometric passports, or e-passports. E-passports include biometric information on the passport holder on a secure chip. Public key infrastructure is used to authenticate the data stored on the passport chip. The United States (2) and most of the EU nations have adopted e-passports for all new passports issued.

Passports are only required for international travel, and are not typically used as ID in domestic commercial transactions where state-issued driver’s licenses are the primary identification documents.

The design of state driver’s licenses has typically been insecure and very easy to forge. The easy availability of counterfeit state ID documents creates a problem with ID theft, and the enforcement of liquor sales restrictions.

In 2005, President Bush signed the Real ID-“Improved Security for Driver’s License and Personal Identification Cards” Act (3). Real ID has been controversial, with several states demanding a repeal and replacement with the proposed PASS ID act. As of January 2011, Department of Homeland Security issued a waiver of the deadline, but states must be in full compliance by May 2011.

In addition to Real ID, Michigan, New York, Vermont, and Washington are issuing Enhanced Driver’s Licenses (EDL) (4). EDL’s provide proof of identity and U.S. citizenship, are issued using a secure process, and include technology that makes travel easier. EDLs are an alternative document to comply with travel rules under the Western Hemisphere Travel Initiative (WHTI) for entering the United States from Canada, Mexico, or the Caribbean through a land or sea port, in addition to serving as the permit to drive. Michigan, New York, Vermont, and Washington issue WHTI compliant documents.

Despite the opposition to REAL ID, most states are implementing new driver’s licenses and state ID cards that include enhanced security features:

  • Magnetic stripes – magnetic stripes have been the main method for storing information on a credit/debit/ID card. They are not very secure, but are usually retained for compatibility with a large installed base of equipment.
  • 2-D barcodes. EDLs require a Machine-Readable Zone (MRZ) or barcode as backup to the RFID. Many states are adopting 2-D barcodes in basic driver’s licenses. 2-D barcodes used in Ohio and Georgia driver’s licenses can store more data, and data can be protected with encryption or digital signatures.
  • Radio Frequency Identification (RFID) chips. RFID is used for Enhanced Driver’s Licenses and the Trusted Travelers Programs (NEXUS, SENTRI, and FAST).
  • Ultra Violet Zones. UV zones contain invisible symbols that light up only in the presence of UV light. These are difficult for counterfeiters to copy.
  • Microprint. Microprint on driver’s licenses prevents forgery. As with bank notes, microprint can be recognized with magnifiers and high resolution imaging devices and make counterfeiting more difficult.
  • Color and positioning of holder photograph. As with banknotes, color patterns and placement are used to determine forgeries.

Applications of ID Card Imaging

The availability of scanners and software to capture ID card magnetic stripes and images open opportunities for two levels of utilization of the ID card images:

Archival storage of ID card images provides a definite proof that ID cards were presented. As noted earlier, they can provide levels of protection against ID theft by displaying images of the ID holder. Even a simple application of recognition technologies (comparing information from the card text, magnetic stripe, and barcode) will detect many common forgeries. Storing front/rear images of ID cards provide proof that the bank employee complied with the Patriot Act, obtaining the ID of a new account holder.

Authentication takes the ID verification to the next level. Authentication solutions offer an automated approach to ID verification, alerting the user of potential risk factors, forgeries, and expired ID cards.

Advanced ID detection systems (see example: advancediddetection.com), typically include a color/high resolution scanner combined with software to authentic ID cards. ID authentication solutions

  • Scan the ID in color, with high resolution
  • Read barcodes and magnetic stripe data
  • Verify infrared patterns
  • Cross-check information in clear text, barcode and magnetic stripes
  • Warn if the ID card is expired, a person is under legal age, etc.

Automated authentication systems are used, for example, in liquor stores and restaurants to avoid sales to minors. It is interesting to note that the Transportation Security Administration (TSA) has not implemented automated authentication on a wide scale. TSA has accepted bids for systems, but so far has limited ID authentication to office training and hand-held UV lights.

Application of ID Scan/Archive and Authentication in Financial Institutions

Most teller stations in financial institutions are equipped with a validation/receipt printer, a PC, monitor and keyboard. More advanced institutions deploy cash dispensers, cash recyclers, coin recyclers, and signature/PIN pads.

Check image capture has moved largely from centralized proof/reader/sorter operations to branch capture. A majority of financial institutions have implemented branch capture (est. 68% of branches) at the back counters. Back counter capture eliminates the “prime pass” but does not eliminate most of the back-office check processing tasks. It offers few fraud prevention opportunities – by the time the item is captured the person will have left the branch.

Fewer but more technologically advanced institutions have implemented check capture at the teller. Implementations of teller capture are growing rapidly in 2010/2011 with many major regional institutions adopting teller capture.

Unfortunately, current teller scanners are not suited for ID capture, and even less for ID authentication

  • First generation check scanners were oriented towards the “lowest common denominator”, 200 dpi bi-tonal images, which may be sufficient for check image exchange but not well suited for IDs.
  • The installed bases of devices have a u-track design that cannot process stiff items such as IDs.

Teller scanners are designed for a five year life cycle, but with declining check volumes will last 7-10 years or longer. It is therefore essential for the industry to ensure that the next generation teller scanner is more versatile to protect the substantial investment required to implement teller capture.

The currently available free-standing solutions for ID authentication are not well-suited for branch banking, because

  • ID authentication solutions are not integrated with other banking applications
  • Free-standing ID authentication solutions are expensive and would consume valuable teller workspace.

It makes much more sense to use teller check scanners for ID capture. To enable future ID scan/authentication applications, a suitable teller scanner must offer

  • A straight track for stiff ID cards. Since limited footprint and the need of 100-item hoppers and stackers require a u-shaped design, ID cards must be scanned using a “by-pass feeder” that enters still items after the bend, but before the front/rear cameras.
  • A resolution of at least 300 dpi, with 256 gray level image capture.
  • An integrated magnetic stripe reader.

The next generation of check scanning devices will allow institutions to capture ID images for

  • Archival storage of proof that the institution validated the ID
  • Automatic capture of customer information (name, address, age, sex) for new account opening or future marketing of unbanked / competitor prospects.
  • Additional logon security by authenticating the teller using the teller employee ID card.
  • Faster teller service by automatically opening the customer account when an ID or credit/debit card is captured -without an extra PC peripheral device. This is commonly used in teller operations in international banks.
  • Recoding of ID images for display at teller workstations to prevent withdrawals with stolen ID
  • A level of authentication supported by 300 dpi grey-scale images, such as decoding 2-D barcodes, and matching ID card and account data with barcodes and magnetic stripe information
  • Potentially adding ID pictures to bank-issued Debit/ATM cards, a practice successfully used by warehouse clubs for combined membership/credit cards, without additional photo equipment.

Application of ID Scan/Archive and Authentication in Alternate Financial Services Channels
Alternative financial services channels provide services that are mostly targeting the unbanked/under-banked population. Alternate financial services are provided by pawn brokers, check cashing stores, pay day lenders, gas station stores, casinos, convenience stores, and even prisons. A recent Wall Street Journal article (5) ] lamented that the 2009 Credit CARD (Card Accountability Responsibility and Disclosure) Act “pushed more Americans outside the banking system” in the name of consumer protection.

Many alternate financial transactions are conducted on financial self-service kiosks. Kiosk integrator manufacture devices with a wide array of features: ID card readers, debit/credit card readers, check acceptors, cash dispensers and acceptors, cameras, and even money order and store value card printers.

Since these customers typically do not use a bank card as the ID or debit/credit card, the driver’s license becomes the primary identification tool. The following is an example of an application implemented at convenience stores of a gas station chain with the CTS SB50E module in a self-service kiosk:

  • Customer registers by inserting the driver’s license. The ID is scanned, stored, authenticated by software, and returned to the customer.
  • The customer is registered using information from the ID (clear text, magnetic stripe and barcode).
  • The customer feeds in the check.
  • The ID and photo/video of the customer is used for approval by a human operator at a central location. The operator accepts the check and it is endorsed, stamped and retained in the device, or rejected and returned to the customer.
  • The kiosk dispenses cash, a stored value card, or a money order (minus a commission).

Financial self-service kiosks are funded by transaction fees, but are often deployed as a marketing tool to bring customers into the convenience store.

Future Technology Advancements – UV and Color Imaging

While color images are standard in most imaging applications, they have not been widely adopted in US check processing. But in international banking, the use of color imaging and UV is growing rapidly.

  • Asian applications require higher-resolution color images to authenticate “chops” – seals that function as signatures.
  • Central banks in India (6) and Latin America are establishing check standards that include UV zones to prevent fraud. The new Reserve Bank of India Check Truncation System CTS-2010 (7) features include use of watermark and printing of bank logos that are only visible with ultra violet images.

As a result, we will see advancements in check scanner technology, including UV and color image capture for check capture and authentication. Color / UV image capture will offer the opportunity to further improve the strength of ID authentication.

1) ]FDIC National Household Survey
2) Bureau of Consular Affairs, U.S. Department of State
3) US Department of Homeland Security – Real ID Final Rule
4) US Customs and Border Protection Enhanced Drivers License website
5) Wall Street Journal, Jan.4 2011, Todd Zywicki, Dodd-Frank and the Return of the Loan Shark
[6) RBI prescribes enhanced security norms for checks- Indian bank org
7)Reserve Bank of India CTS 2010 Standard for cheque forms – specifications

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Loan Sharks – What You Need to Know

Loan sharking is the practice of lending money to desperate people at extremely high and illegal rates of interest. Loan sharks, or shylocks, make a big profit from people who can’t get loans from legitimate sources, such as banks or other lending institutions. For as long as people have needed money they don’t have, there have been loan sharks there to provide their services for a fee. They introduce themselves as a solution to a problem; they are businessmen who want to help a borrower get out of a bind. Prey to these sharks can be compulsive gamblers, single parents, the elderly, illegal immigrants, white-collar executives, or anybody else who desperately needs more money than they have access to.

Most people associate loan sharks with gangsters and organized crime. Loan sharking is a very lucrative business for criminals, and it’s a major source of income for the crime families. They receive a very good rate of return on their investment, and in a short amount of time, often a matter of weeks. They may charge interest at rates of up to 20% per week, and possibly even higher. In one New York investigation, it was found that a loan shark syndicate was netting 3000% annual interest! Dallas mobsters were more competitively priced, they charged only 585% annual interest. These were rates in the ghetto. Shylocks would be more competitively priced for corporate white-collar businessmen; rates might be more in the 5% weekly range.

In the mafia world, shylocking is also known as six-for-five; you borrow five and pay back six at the end of the week. You can see how this can turn very expensive. If someone borrowed five hundred and did not have the full payment, the loan shark would accept the interest payment of one hundred and extend the loan for another week, with interest. If they can’t pay when they’re supposed to, they would be forced to take out another loan, interest is added on top of interest and the debt can quickly become impossible to get out of.

The funds for shylocking would usually come from the top, the family boss. The boss would loan money to his capos (lieutenants), knowing he could trust them to pay him back with interest. The capos then loan money with interest to the lower ranking members of the mob. These are the loan sharks that made loans to the common citizen, and enforced payment.

Loan sharks ensured payment with threats of violence. They require no collateral other than the borrower and his family’s well being. “Leg-breakers” were often employed by loan sharks to be sure they receive payment. It’s not true that people were always killed if they didn’t pay. Dead people can’t pay back their debts, so it would not be good business practice to eliminate resources. They would occasionally “make an example” of some who owed very little to be sure other borrowers took them seriously. The borrower, worrying about life and limb of himself and his family, would have no option but to pay the shylock even if it meant he had to lie, cheat, or steal.

Modern Day Predatory Lending

There is no legal definition for predatory lending, but it generally includes the use of unethical practices by lenders who use tactics that skirt around the law. They might give unfair loan terms, use confusing language, charge hidden fees, and use high-pressure sales methods. They make money as long as they can keep borrowers in debt to them. They commonly target the elderly, low-income, minorities, or people with poor credit, but anyone can be a victim of these unscrupulous lenders. Predatory lenders thrive on consumers who need or want more than they can afford to have, and trick borrowers into believing the loans are necessary and affordable.

Many commonly accepted loan services are available to consumers that work on the same principles as a mob shylock. There are laws regulating the amount of interest that can be charged for a loan, but lenders can charge “service fees.” Check cashing places offer “payday loans”, you can write them a post-dated check for the amount of the loan, plus a hefty fee for use of that money for a week or two. The fees can amount to 400% APR, these places are happy to loan as much as possible based on the borrower’s expected paycheck. Then what happens when he gets his paycheck and realizes that it’s already spent? He’ll go back to take out another payday loan so he can pay his bills and buy groceries. This cycle of borrowing more to pay back a loan can trap a person into being perpetually in debt and never getting ahead. These places are usually found on the same block as a liquor store in low-income neighborhoods. These lenders prey on people with limited means and encourage them to live paycheck to paycheck.

Title loans are another way people are getting ripped off. People who own their car free and clear can bring in their title and an extra set of keys, and drive away with up to half the value of their car. They agree to a loan at an extremely high rate, or with a large balloon payment without realistically being able to pay. The title loan companies don’t care what kind of credit the borrower has, because they win either way. They receive an excellent profit on the interest charges or they repossess the car and sell it for twice the loan amount. Sounds like a “can’t lose” situation for them, so it must be a “can’t win” situation for the borrower.

I’ve heard predatory commercials on the radio from car dealerships. The announcer might say something ridiculous like, “We’ll give you $5000 for your trade on anything you can push, pull, or tow in here, and we don’t care how ugly it is!” We’d all be rich if we could sell junk cars for $5000, but who would buy one? These predatory lenders just add that $5000 that they “gave” you to the price of your new car being financed. You’ll drive away in a shiny new car and you’ll get stuck with a loan for $5000 more than the car is worth.

What if you owe more on your trade-in than it’s value? It’s known as a negative equity loan or an upside down loan. This is quite common, considering car dealers want to sell expensive cars more than cheaper ones, and consumers want to drive the best car they can get a loan for. Cars depreciate faster than the loan can be paid down, and when you spread the payments over five or six years instead of three, this can amount to thousands of dollars. Eager to sell you another new car, dealerships work with lenders and add the difference to your loan amount, ensuring that vicious debt cycle.

It is appalling that greedy predatory lenders would go so far as to trick people out of their homes, but it happens. Abundant offers for second mortgages or use credit card balance transfers to pay off credit card debt come daily in the mail. It’s shocking that lenders would encourage you to take equity from your home to buy a two-week vacation, a hot tub, a motorcycle, or other big “toys”. Would a sensible person really want to pay 15-30 years with interest for some unnecessary material items that make life just a little more fun? These predatory lenders like to remind you of all the improvements you could make in your life if you just had access to the equity in your home. They encourage you to dream of everything you’re missing out on because your assets are tied up in your house. They sell you on the idea that you’ll “save” money by consolidating your high interest debt. You might have smaller monthly payments… but the debt is stretched out over many years, increasing your total interest costs. Many borrowers just rack up new debt after getting that second mortgage to pay off bills because their formerly maxed out credit cards are now freed up again. When the borrower can’t afford his mortgage, second mortgage, and new credit card debt, the home goes into foreclosure and the borrower loses everything he’s worked for.

Home-improvement scams have also hit America hard, particularly the elderly. Someone who has been making regular mortgage payments for many years has most likely built up lots of equity in their home, which makes them a prime target for these ruthless predators. Contractors offer to make repairs or improvements to the home, and can even be so “helpful” as to set up financing for the unsuspecting homeowner. An elderly widow, who can’t do the work herself, is grateful for the nice young man who can help her get her home back in shape. When it comes to the confusing legal jargon in the contract, she trusts him and his simple explanation of what it is she’s signing. She unknowingly agrees to take out a high-interest second mortgage that requires a balloon payment at the end. She later finds out that all her payments have gone to pay mostly interest, barely making a dent in the principle owed. She can’t pay the huge balloon payment when due, and loses her house in foreclosure. It is unfortunate that these predators are willing to put someone’s grandmother out of her home to make their fortune.

My neighborhood is several years old and a part of it is still in construction. This addition draws many first-time homebuyers. When I shopped for mortgages, I thought it was odd that my builder’s mortgage lender approved my loan for an amount about 30% more than a regular mortgage broker could get for me. Don’t we all want the best house we can afford? It’s tempting to take a mortgage that’s barely affordable, to get that bigger house with more options. It’s interesting to note that there are quite a few foreclosures in this neighborhood, usually the houses that are about two years old. On brand new homes, you would only pay taxes on the value of the empty lot, that is, until it is reassessed with the value of the house on it. This happens where I live about a year and a half after the home is built and closed on. The mortgage lender does warn you that your payments will go up in a couple of years after the taxes are reassessed, but still approves your mortgage based on your current income and the tax on the empty lot. You might not think much of it then because you believe you’ll figure something out by the time your payments go up. About 18 months later, your PITI payment increases by a couple of hundred dollars a month, but your income hasn’t. Many families have lost their homes to foreclosure because they weren’t prepared for this dramatic increase in payment.

Predatory lending has many more faces; I gave just a few examples. You’ve heard of scams people have reported in the newspapers. You can read about victims in internet blogs. The nightly news is always showing a new story about a new way predators are trying to take our money. You’ve seen the ads that the lenders themselves have run. These unscrupulous businesses may be fraudulent, or just plain tricky. They thrive on the “Gotta have it now” attitude that many consumers live by. The only way to protect yourself is to educate yourself. I’ve referred to the borrowers several times as “victims”, but truly they are victims of their own lack of awareness.

Protect Yourself From Predatory Lenders

  • Use your financial common sense; if you can’t afford it, you shouldn’t buy it.
  • Plan a realistic budget and stick to it.
  • Have a savings plan so that you’ll be prepared in case of a true emergency.
  • Keep your credit rating high so that you won’t be forced to go with “sub-prime” lenders, where predatory lending is common.
  • Be skeptical about quick fixes and easy money.
  • If it sounds too good to be true, it probably is.
  • Bad credit, no credit, no problem! This is one of predatory lenders favorite lines.
  • Buy here, pay here! Rent to own. No money down! You must act now! Some of their other favorite lines.
  • Any loan, including your first mortgage, which uses the equity in your house as collateral should be looked at very carefully.
  • Know what it is you’re signing, and never sign documents that don’t have all the terms filled in.
  • If you don’t understand the contract in question, consult an attorney. Lawyer fees can be a bargain compared to the potential loss.
  • Shop around for loans of any kind; never say yes to the first offer.
  • Visit The Center For Responsible Lending for information about laws to protect you, or how you can get involved in the fight against predatory lending.
  • Don’t let salesmen pressure you into something you aren’t sure about.
  • Refuse to take out more loans to pay off already unmanageable debts.
  • Beware of the temptingly low interest rates that skyrocket after you’ve had enough time to shop more than you should.
  • Take responsibility for your financial well-being.
  • Predatory lenders are out there taking money, but don’t let them take yours.

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It’s Time For Millennials To Get Their Finances In Shape

Most millennials are now in there 20s and 30s, beginning a career climb and also the time when you are making major financial decisions. These financial decisions can include home ownership, investment strategies, and family planning. Certainly, you want to try and avoid some of the financial hazards that have transpired in the lives of previous generations.

Financial literacy is seldom taught in school, so if you didn’t learn it at home growing up, your first time in the “real world” may get you into some financial distress. Read below to learn some of the top financial tips that will help millennials make smart financial decisions.

Take online money management courses

Because most millennials excel at technology, I would suggest signing up for courses in basic economics, accounting and budgeting. These types of courses can be very affordable and very well delivered by the online professor. I feel this is a very efficient way to update yourself on financial topics that may simplify and improve your financial life.

Build up your retirement savings

Did you know that Wells Fargo revealed that almost 50% of millennials weren’t planning for retirement? Make sure you participate in your employer’s 401(k) plan, even if you can only afford to contribute the minimum every month.

Make a list of your whole financial picture

I recommend you make a list of everything that is spent each month. After you have digested this information, ask yourself this question. How am I going to pay for all of this? There are also four essential things everyone should know about their finances: income, expenses, assets and liabilities. Having a firm comprehension of these items will help you make sense of your finances. There are many online tools that can help you connect all your accounts – Mint, Quicken just to name a few. I believe this is your first step in improving your finances.

Research passive income opportunities

Most of us work for money all our lives and never really put it to work for us. It is possible to use your job income for passive income from your investments. For example, the IRS says passive income can come from two sources: rental property or a business in which you do not actively participate. Make no mistake; passive income is not about getting something for nothing. It involves a lot of work and is definitely not a “get rich quick” scheme.

Start a savings account

Open up a share account at your credit union even if you can’t make regular deposits. You can use this account to put extra money aside for your short term and even long-term goals. This can also be used as your emergency fund. Shoot for 3-12 months of expenses, put aside for emergencies.

Pay yourself first

Once you have money in your hand from your paycheck, IRS refund, etc. always pay yourself first. Arrange for automatic transfers from your checking account directly to your share account every payday or on a monthly basis.

Do you know the impact of your credit score?

Everyone, but especially entrepreneurial millennials need to understand that their personal credit can be the defining factor in getting working capital in the future. Getting approved for a loan can be very challenging when your credit score is low. Learn how to read your credit report and check it frequently.

Reduce your debt faster

Pay off small debts first and gradually tackle the larger ones. This will allow you to see results and stay motivated.

Enlist the assistance of a trusted mentor

There is an overabundance of information online regarding financial literacy. However, picking the brain of someone you know and trust is better. Their insights are often tailor-made to your specific needs.

Remove extra costs

It is a proven fact that millennials have expensive habits ($5 lattes every day, eating out on a regular basis, designer fashions, etc.). Keep a close eye on your expenses and trim them where you can.

Raise your children to be financially savvy

At this point you may already have young children or planning to start a family. Teach them that saving money is essential. When they are old enough take them to your credit union and help them open up their own accounts. This will hopefully excite them to continue saving their own money.

I hope you use these financial tips to keep your finances on track while you are young. Remember, you have a very bright financial future ahead of you if you start now and stick with it!

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