online order – bantamnyc.com http://bantamnyc.com/ Thu, 26 Aug 2021 09:46:28 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 EnerDynamic Receives Final Approvals For The Windular Acquisition, Debt Settlement & Financing https://bantamnyc.com/enerdynamic-receives-final-approvals-for-the-windular-acquisition-debt-settlement-financing-2/ https://bantamnyc.com/enerdynamic-receives-final-approvals-for-the-windular-acquisition-debt-settlement-financing-2/#respond Wed, 25 Aug 2021 20:01:00 +0000 https://bantamnyc.com/enerdynamic-receives-final-approvals-for-the-windular-acquisition-debt-settlement-financing-2/ NIAGARA FALLS, ON / ACCESSSWIRE / August 25, 2021 / EnerDynamic Hybrid Technologies Corp. (TSXV: EHT) (“EHT” or the “Company”), a global leader in solar and wind renewable energy technologies, is pleased to announce that it has now received final approval from the Stock Exchange of TSX Venture (“TSXV”) to complete the following transactions: The […]]]>


NIAGARA FALLS, ON / ACCESSSWIRE / August 25, 2021 / EnerDynamic Hybrid Technologies Corp. (TSXV: EHT) (“EHT” or the “Company”), a global leader in solar and wind renewable energy technologies, is pleased to announce that it has now received final approval from the Stock Exchange of TSX Venture (“TSXV”) to complete the following transactions:

The acquisition

The Company is pleased to announce that it has successfully completed the previously announced acquisition of Windular Research and Technologies inc. (“Windular”) (the “Acquisition”) and its advanced “Smart Tracking” turbine system designed for the telecommunications industry.

The Company acquired all of the issued and outstanding shares of Windular in a stock transaction valued at $ 15 million. Pursuant to the Acquisition, the Company issued 21,428,572 common shares (the “Issued Shares”) to the shareholders of Windular at a deemed price of $ 0.70. Certain holders of issued shares have agreed to enter into lock-up agreements whereby 25% of their issued shares will be freely traded upon closing of the acquisition, 25% of their issued shares will be held for a period of four months and one. day after the closing of the acquisition, and the balance of their issued shares will become free for trading eight months after the closing of the acquisition.

The combination of the company and Windular will offer a full range of clean energy technology solutions to the global “tower” market.

Actions for the debt operation

The Company has entered into agreements with certain debtors and creditors, including certain holders of debentures, to settle a total indebtedness of $ 14,228,109.94 by issuing 20,325,871 common shares of the Company (the “Settlement Shares”). ”), At a deemed price of C $ 0.70 per settlement. Action in accordance with the policies of the TSXV (the “Debt Settlement”). As a result, the Company has completed the Debt Settlement and the Settlement Shares are subject to the legal hold period of four months and one day after their issue. EHT will continue to work with the few remaining debenture holders to settle their amounts owed over the coming months.

The offering

The Company has closed its previously announced non-intermediary private placement offer (the “Offer”). In connection with the offering, the Company issued 5,094,857 units (each, a “Unit”) at a price of Cdn $ 0.70 per unit for total gross proceeds of $ 3,566,399.90. Each unit consists of one common share of the Company (a “Share”) and one transferable common share purchase warrant (a “Warrant”). Each warrant allows the holder to purchase one additional share at the price per share of C $ 1.00 until August 25, 2023. The amount currently raised is more than sufficient to start EHT projects that are ready to go. , with less dilution for shareholders and will be used to fund EHT and Windular’s ongoing projects as well as for general working capital purposes.

As part of the Offer, the Company paid finder’s fees consisting of 7% in cash and 7% of non-transferable share subscription warrants allowing their holders to purchase Company Shares at a price per share of $ 1.00 up to 24 months after closing. The Company issued 3,150 warrants and paid $ 2,205 in cash research fees to Leede Jones Gable Inc.

An insider of the Company participated in the offering by subscribing for 142,857 units. The subscription of units to insiders as part of the offering is considered a “related party transaction” under Multilateral Instrument 60-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”) , but the Company intends to rely on the available exemptions from the formal assessment and minority shareholder approval requirements set out in sections 5.5 (a) and 5.7 (a) of NI 61-101 on the basis that the Participation in the Offer by insiders will not exceed 25% of the fair market value of the Company’s Market Capitalization. The action disclosed herein has been approved by the Board of Directors of the Company.

Other topics

EHT is also pleased to have been able to considerably clean up its balance sheet as part of this set of operations and as is currently the case with a new balance sheet consolidation. Over the next few months, EHT will voluntarily upgrade its EnerDynamic Hybrid Technologies Inc. subsidiary of EnerDynamic Hybrid Technologies Corp. bankrupt. The division has not done any business in recent years and will further reduce the company’s consolidated liabilities by more than $ 12,000,000.

John Gamble, CEO of EHT, commented: “This is a historic day for the company. It’s been a long process, but now we have the core of the best new renewable energy technologies and we are able to move forward on many fronts. “

About EnerDynamic Hybrid Technologies

EHT (TSXV: EHT) provides exclusive turnkey energy solutions that are smart, bankable and sustainable. Most energy products and solutions can be implemented immediately where they are needed. EHT sets itself apart from its competitors by combining a full line of solar photovoltaic, wind and battery storage solutions, which can provide power around the clock, both on a small and large scale. In addition to traditional support to established power grids, EHT excels where there is no power grid. The organization provides advanced solutions for various industries in combination with energy saving and power generation solutions. EHT’s expertise includes the development of module structures with full integration of smart energy solutions. These are transformed through EHT’s production technologies into attractive applications: modular homes, cold storage facilities, schools, residential and commercial outbuildings and emergency / temporary shelters. Windular Research and Technologies Inc. (WRT) provides cutting-edge wind technology to the global telecommunications market whereby the WRT system can be implemented directly on any existing or new tower configuration. WRT provides a source of renewable energy in remote and rural areas where the primary source of energy is diesel. WRT’s innovative system offers customers a lower overall cost of ownership as well as a reduced carbon footprint.

For more information, please contact:

John gamble
Chief Executive Officer
EnerDynamic Hybrid Technologies Corp.
Phone. : 289-488-1699
Email: info@ehthybrid.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Statements contained in this document that are not historical facts are forward-looking statements. Forward-looking information relating to the sales of products (the “Opportunities”) involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects, for the Opportunities to differ materially from those expressed. or implied by these perspectives. information search. Although EHT believes that the assumptions used in preparing forward-looking information about the opportunities described in this press release are reasonable, one should not place undue reliance on such information, which only applies as of the date of this press release. press release, and no assurance can be given that such events will occur within the disclosed time frame or not at all. EHT disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by applicable securities laws.

THE SOURCE: EnerDynamic Hybrid Technologies Corp.

See the source version on accesswire.com:
https://www.accesswire.com/661392/EnerDynamic-Receives-Final-Approvals-For-The-Windular-Acquisition-Debt-Settlement-Financing



Source link

]]>
https://bantamnyc.com/enerdynamic-receives-final-approvals-for-the-windular-acquisition-debt-settlement-financing-2/feed/ 0
EnerDynamic Receives Final Approvals For The Windular Acquisition, Debt Settlement & Financing https://bantamnyc.com/enerdynamic-receives-final-approvals-for-the-windular-acquisition-debt-settlement-financing/ https://bantamnyc.com/enerdynamic-receives-final-approvals-for-the-windular-acquisition-debt-settlement-financing/#respond Wed, 25 Aug 2021 20:01:00 +0000 https://bantamnyc.com/enerdynamic-receives-final-approvals-for-the-windular-acquisition-debt-settlement-financing/ NIAGARA FALLS, ON / ACCESSSWIRE / August 25, 2021 / EnerDynamic Hybrid Technologies Corp. (TSXV: EHT) (“EHT” or the “Company”), a global leader in solar and wind renewable energy technologies, is pleased to announce that it has now received final approval from the Stock Exchange of TSX Venture (“TSXV”) to complete the following transactions: The […]]]>


NIAGARA FALLS, ON / ACCESSSWIRE / August 25, 2021 / EnerDynamic Hybrid Technologies Corp. (TSXV: EHT) (“EHT” or the “Company”), a global leader in solar and wind renewable energy technologies, is pleased to announce that it has now received final approval from the Stock Exchange of TSX Venture (“TSXV”) to complete the following transactions:

The acquisition

The Company is pleased to announce that it has successfully completed the previously announced acquisition of Windular Research and Technologies inc. (“Windular”) (the “Acquisition”) and its advanced “Smart Tracking” turbine system designed for the telecommunications industry.

The Company acquired all of the issued and outstanding shares of Windular in a stock transaction valued at $ 15 million. Pursuant to the Acquisition, the Company issued 21,428,572 common shares (the “Issued Shares”) to the shareholders of Windular at a deemed price of $ 0.70. Certain holders of issued shares have agreed to enter into lock-up agreements whereby 25% of their issued shares will be freely traded upon closing of the acquisition, 25% of their issued shares will be held for a period of four months and one. day after the closing of the acquisition, and the balance of their issued shares will become free for trading eight months after the closing of the acquisition.

The combination of the company and Windular will offer a full range of clean energy technology solutions to the global “tower” market.

Actions for the debt operation

The Company has entered into agreements with certain debtors and creditors, including certain holders of debentures, to settle a total indebtedness of $ 14,228,109.94 by issuing 20,325,871 common shares of the Company (the “Settlement Shares”). ”), At a deemed price of C $ 0.70 per settlement. Action in accordance with the policies of the TSXV (the “Debt Settlement”). As a result, the Company has completed the Debt Settlement and the Settlement Shares are subject to the legal hold period of four months and one day after their issue. EHT will continue to work with the few remaining debenture holders to settle their amounts owed over the coming months.

The offering

The Company has closed its previously announced non-intermediary private placement offer (the “Offer”). In connection with the offering, the Company issued 5,094,857 units (each, a “Unit”) at a price of Cdn $ 0.70 per unit for total gross proceeds of $ 3,566,399.90. Each unit consists of one common share of the Company (a “Share”) and one transferable common share purchase warrant (a “Warrant”). Each warrant allows the holder to purchase one additional share at the price per share of C $ 1.00 until August 25, 2023. The amount currently raised is more than sufficient to start EHT projects that are ready to go. , with less dilution for shareholders and will be used to fund EHT and Windular’s ongoing projects as well as for general working capital purposes.

As part of the Offer, the Company paid finder’s fees consisting of 7% in cash and 7% of non-transferable share subscription warrants allowing their holders to purchase Company Shares at a price per share of $ 1.00 up to 24 months after closing. The Company issued 3,150 warrants and paid $ 2,205 in cash research fees to Leede Jones Gable Inc.

An insider of the Company participated in the offering by subscribing for 142,857 units. The subscription of units to insiders as part of the offering is considered a “related party transaction” under Multilateral Instrument 60-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”) , but the Company intends to rely on the available exemptions from the formal assessment and minority shareholder approval requirements set out in sections 5.5 (a) and 5.7 (a) of NI 61-101 on the basis that the Participation in the Offer by insiders will not exceed 25% of the fair market value of the Company’s Market Capitalization. The action disclosed herein has been approved by the Board of Directors of the Company.

Other topics

EHT is also pleased to have been able to considerably clean up its balance sheet as part of this set of operations and as is currently the case with a new balance sheet consolidation. Over the next few months, EHT will voluntarily upgrade its EnerDynamic Hybrid Technologies Inc. subsidiary of EnerDynamic Hybrid Technologies Corp. bankrupt. The division has not done any business in recent years and will further reduce the company’s consolidated liabilities by more than $ 12,000,000.

John Gamble, CEO of EHT, commented: “This is a historic day for the company. It’s been a long process, but now we have the core of the best new renewable energy technologies and we are able to move forward on many fronts. “

About EnerDynamic Hybrid Technologies

EHT (TSXV: EHT) provides exclusive turnkey energy solutions that are smart, bankable and sustainable. Most energy products and solutions can be implemented immediately where they are needed. EHT sets itself apart from its competitors by combining a full line of solar photovoltaic, wind and battery storage solutions, which can provide power around the clock, both on a small and large scale. In addition to traditional support to established power grids, EHT excels where there is no power grid. The organization provides advanced solutions for various industries in combination with energy saving and power generation solutions. EHT’s expertise includes the development of module structures with full integration of smart energy solutions. These are transformed through EHT’s production technologies into attractive applications: modular homes, cold storage facilities, schools, residential and commercial outbuildings and emergency / temporary shelters. Windular Research and Technologies Inc. (WRT) provides cutting-edge wind technology to the global telecommunications market whereby the WRT system can be implemented directly on any existing or new tower configuration. WRT provides a source of renewable energy in remote and rural areas where the primary source of energy is diesel. WRT’s innovative system offers customers a lower overall cost of ownership as well as a reduced carbon footprint.

For more information, please contact:

John gamble
Chief Executive Officer
EnerDynamic Hybrid Technologies Corp.
Phone. : 289-488-1699
Email: info@ehthybrid.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Statements contained in this document that are not historical facts are forward-looking statements. Forward-looking information relating to the sales of products (the “Opportunities”) involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects, for the Opportunities to differ materially from those expressed. or implied by these perspectives. information search. Although EHT believes that the assumptions used in preparing forward-looking information about the opportunities described in this press release are reasonable, one should not place undue reliance on such information, which only applies as of the date of this press release. press release, and no assurance can be given that such events will occur within the disclosed time frame or not at all. EHT disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by applicable securities laws.

THE SOURCE: EnerDynamic Hybrid Technologies Corp.

See the source version on accesswire.com:
https://www.accesswire.com/661392/EnerDynamic-Receives-Final-Approvals-For-The-Windular-Acquisition-Debt-Settlement-Financing



Source link

]]>
https://bantamnyc.com/enerdynamic-receives-final-approvals-for-the-windular-acquisition-debt-settlement-financing/feed/ 0
Brex Rolls Out Debt Financing Tool https://bantamnyc.com/brex-rolls-out-debt-financing-tool/ https://bantamnyc.com/brex-rolls-out-debt-financing-tool/#respond Wed, 25 Aug 2021 20:00:05 +0000 https://bantamnyc.com/brex-rolls-out-debt-financing-tool/ Silicon Valley FinTech Brex is launching a new product to extend debt financing with longer terms and faster due diligence to some of its selected business clients. CEO and co-founder of Brex Henrique Dubugras said in a Press release Wednesday, August 25 that the startup still aims to “support growing companies” and launches new products […]]]>


Silicon Valley FinTech Brex is launching a new product to extend debt financing with longer terms and faster due diligence to some of its selected business clients.

CEO and co-founder of Brex Henrique Dubugras said in a Press release Wednesday, August 25 that the startup still aims to “support growing companies” and launches new products as its customer base continues to grow.

See also: FinTech Brex asks for a banking charter

“Our risky debt solution was created with scale in mind so we can help founders take their businesses to the next level while minimizing dilution,” added Dubugras.

The company strives to be the ‘all-in-one financing solution for growing businesses’, and with Brex Venture Debt it is able to provide access to debt financing to a wider customer base. .

See also: Brex leads busy week in B2B FinTech financing

Brex Venture Debt is extended to selected clients with “scalable and recurring revenues in high growth industries” that include software as a service (SaaS) and FinTech, the statement said. The product is different from what a traditional bank currently offers in that it has longer durations and faster approvals.

One of Brex’s first clients was Welcome co-founder and CEO Roberto Ortiz, who is now considering bringing in Brex Venture Debt to help develop his company’s virtual events platform. “The Brex offer is much more suited to the needs of growing companies than what previously existed in the market,” Ortiz said.

See also: B2B FinTech Brex Acquires API Weav Trading Platform in $ 50 Million Deal

Founded in 2018, Brex began by offering a business card developed with startups in mind. Since then, the business has grown rapidly by offering faster onboarding times, seamless integration, faster settlement speeds, and real-time visibility.

——————————

NEW PYMNTS DATA: 58% OF MULTINATIONAL COMPANIES USE CRYPTO-CURRENCY

On: Despite price volatility and regulatory uncertainty, a new study from PYMNTS shows that 58% of multinational companies are already using at least one form of cryptocurrency, especially when transferring funds across borders. The new Cryptocurrency, Blockchain and Global Business survey, a PYMNTS and Circle collaboration, probing 500 executives about the potential and pitfalls that crypto faces as it becomes part of the mainstream financials.



Source link

]]>
https://bantamnyc.com/brex-rolls-out-debt-financing-tool/feed/ 0
Insurer not obligated to defend debt collection law firm https://bantamnyc.com/insurer-not-obligated-to-defend-debt-collection-law-firm/ https://bantamnyc.com/insurer-not-obligated-to-defend-debt-collection-law-firm/#respond Wed, 25 Aug 2021 18:30:14 +0000 https://bantamnyc.com/insurer-not-obligated-to-defend-debt-collection-law-firm/ An insurer was not required to defend a debt collection law firm that was sued after pursued by mistake the wrong person under an exclusion in its coverage, a federal appeals court ruled Wednesday. Rodenburg LLP, a Fargo, North Dakota law firm primarily engaged in debt collection, has obtained a default judgment on a debt […]]]>


An insurer was not required to defend a debt collection law firm that was sued after pursued by mistake the wrong person under an exclusion in its coverage, a federal appeals court ruled Wednesday.

Rodenburg LLP, a Fargo, North Dakota law firm primarily engaged in debt collection, has obtained a default judgment on a debt owed by a “Charlene Williams,” according to the ruling. 8th United States Court of Appeals in St. Louis in Rodenburg LLP v. Certain Underwriters at Lloyd’s of London, The Cincinnati Insurance Co.

In early November 2016, Rodenburg served a notice of intent to garnish Ms Williams’ salary at the residential address associated with the debt, but not receiving a response, he then served on Ms employer. Williams a notice of garnishment.

Ms Williams reportedly informed Rodenburg in December that she was not the debtor he had a default judgment against, but the law firm allegedly ignored that information and garnished her salary for six weeks. After a lawyer informed the firm that he was wrong about Charlene Williams, the latter stopped the garnishment and returned the seized funds.

Ms Williams then sued the law firm, citing in part violations of the Fair Debt Collection Practices Act, alleging that her actions caused her emotional distress, among other impacts. The case has been settled, according to the decision, which did not disclose the amount of the settlement.

Rodenburg’s insurer Cincinnati Financial refused to defend or indemnify Rodenburg, and the law firm sued him in Fargo U.S. District Court, which granted the insurer summary judgment dismissing the case.

The decision was upheld by a unanimous three-judge appeals court, which cited a policy exclusion for violating any law, other than the Consumer Telephone Protection Act or the CAN-SPAM Act of 2003, ” that prohibits or restricts the sending, transmission, communication or distribution of material or information.

The panel agreed with Cincinnati that this included the FDCPA. “Cincinnati therefore did not breach its contractual obligation to defend Rodenburg, and so we do not need to consider whether Cincinnati had a duty to compensate Rodenburg for the Williams lawsuit,” said the ruling, upholding the judgment. of the lower court.



Source link

]]>
https://bantamnyc.com/insurer-not-obligated-to-defend-debt-collection-law-firm/feed/ 0
CFPB Proposes Settlement With Debt Collector For Failing To Investigate Identity Theft Reports – Consumer Protection https://bantamnyc.com/cfpb-proposes-settlement-with-debt-collector-for-failing-to-investigate-identity-theft-reports-consumer-protection/ https://bantamnyc.com/cfpb-proposes-settlement-with-debt-collector-for-failing-to-investigate-identity-theft-reports-consumer-protection/#respond Wed, 25 Aug 2021 17:03:58 +0000 https://bantamnyc.com/cfpb-proposes-settlement-with-debt-collector-for-failing-to-investigate-identity-theft-reports-consumer-protection/ États Unis: CFPB propose un règlement avec un agent de recouvrement pour avoir omis d’enquêter sur les rapports de vol d’identité 25 août 2021 Hollande et chevalier Pour imprimer cet article, il vous suffit de vous inscrire ou de vous connecter sur Mondaq.com. Points forts Le Consumer Financial Protection Bureau (CFPB) a déposé une proposition […]]]>


États Unis: CFPB propose un règlement avec un agent de recouvrement pour avoir omis d’enquêter sur les rapports de vol d’identité

Pour imprimer cet article, il vous suffit de vous inscrire ou de vous connecter sur Mondaq.com.

Points forts

  • Le Consumer Financial Protection Bureau (CFPB) a déposé une proposition de règlement dans le but de résoudre une action en justice contre une entreprise de recouvrement de créances et son propriétaire, le CFPB déclarant qu’il “ne tolérera pas les entreprises qui mettent des données inexactes sur les rapports de crédit ou ne parviennent pas à enquêter sur les litiges des consommateurs.
  • Les créanciers, y compris les sociétés émettrices de cartes de crédit et autres institutions vendant des créances, doivent connaître les procédures mises en place par les acheteurs de créances pour garantir l’exactitude des rapports. Le CFPB peut chercher à tenir pour responsables non seulement les acheteurs de dettes dont les politiques et procédures sont insuffisantes ou dont le respect est insuffisant, mais également ceux qui leur vendent des dettes.
  • Le règlement proposé souligne aux créanciers et aux acheteurs de dettes qu’un examen approfondi est susceptible de s’étendre à l’avenir. Les acheteurs de créances doivent avoir mis en place des procédures qui cherchent à rapporter avec précision les données des consommateurs, ainsi que se conformer à ces procédures et chercher à s’améliorer là où des améliorations peuvent être apportées.

Avec la pandémie actuelle de COVID-19, les sociétés émettrices de cartes de crédit pourraient faire l’objet d’une surveillance accrue, car Dave Uejio, directeur par intérim du Consumer Financial Protection Bureau (CFPB), a récemment déclaré que « les rapports de crédit jouent un rôle énorme dans la vie financière des consommateurs » et « nous ne tolérerons pas les entreprises qui mettent des données inexactes sur les rapports de crédit ou qui n’enquêtent pas sur les litiges des consommateurs.”

Le 16 août 2021, le CFPB a déposé une proposition de règlement pour tenter de résoudre un procès contre une entreprise de recouvrement de créances, Fair Collections & Outsourcing (FCO), et son propriétaire. Le plein impact de l’affaire et les conditions de règlement qui en résultent proposées par le CFPB restent à voir, mais le règlement proposé nécessite l’attention de nombreux acteurs des secteurs de la vente et de l’achat de dettes à la consommation. Les créanciers, y compris les sociétés émettrices de cartes de crédit et autres institutions vendant des créances, doivent connaître les procédures mises en place par les acheteurs de créances pour garantir l’exactitude des rapports. Le CFPB peut chercher à tenir pour responsables non seulement les acheteurs de dettes dont les politiques et procédures sont insuffisantes ou dont le respect est insuffisant, mais également ceux qui leur vendent des dettes.

Contexte et directives OCC

L’idée d’un régulateur fédéral examinant les vendeurs de dette pour les méfaits des acheteurs de cette dette n’est pas un phénomène nouveau. En 2014, le Bureau du contrôleur de la monnaie (OCC) a publié un bulletin de surveillance intitulé “Ventes de créances à la consommation : directives de gestion des risques“, Bulletin de l’OCC 2014-37 (4 août 2014), dans lequel l’OCC a publié ce qui constituait un précédent sur la vente par les banques nationales de créances radiées à des acheteurs de créances tiers.

Ce qui a rendu ces directives si révolutionnaires, c’est qu’elles ont marqué ce qui semblait être la première fois que l’OCC (ou tout régulateur bancaire fédéral) a demandé aux banques d’effectuer une certaine mesure de diligence raisonnable en matière de conformité sur une contrepartie à une vente d’actifs. Selon l’OCC : « Les banques doivent savoir quelles ressources les acheteurs de dettes utilisent pour gérer et poursuivre les recouvrements et tenir compte des performances passées des acheteurs de dettes avec les lois et réglementations sur la protection des consommateurs. L’OCC craignait que les banques nationales “donnent aux acheteurs de dette l’accès aux fichiers des clients afin qu’ils puissent évaluer la qualité du crédit avant la vente de la dette, sans que les banques ne procèdent d’abord à des divulgations appropriées des clients, ce qui était incompatible avec les politiques de confidentialité internes des banques et les lois et réglementations applicables. .” L’OCC a également identifié des cas dans lesquels les banques, les acheteurs de dettes ou les deux avaient mis en place des contrôles inadéquats pour protéger le transfert des informations sur les clients, et a en outre identifié des accords de vente de dettes entre les banques et les acheteurs de dettes qui manquaient de dispositions en matière de confidentialité et de sécurité des informations.

Afin d’aborder les risques perçus par l’OCC dans la vente de créances de consommation à des acheteurs de créances tiers, l’OCC a proposé plusieurs recommandations pour des mesures correctives de conformité. Ces recommandations comprennent, sans s’y limiter, les suivantes.

  • Veiller à ce que des politiques et procédures internes appropriées soient élaborées et mises en œuvre pour régir les accords de vente de dettes de manière cohérente dans toute la banque.
  • Effectuez une vérification diligente appropriée lors de la sélection d’un acheteur de dette.
  • Assurez-vous que les accords de vente de créances avec les acheteurs de créances couvrent toutes les considérations importantes.
  • Fournir des informations précises et complètes concernant chaque dette vendue au moment de la vente.
  • Certains types de créances ne conviennent pas à la vente.
  • Se conformer aux lois et règlements applicables. Les lois sur la protection des consommateurs spécifiquement référencées par l’OCC sont : la Fair Debt Collection Practices Act (FDCPA), la Fair Credit Reporting Act (FCRA), la Gramm-Leach-Bliley Act (GLBA), la Equal Credit Opportunity Act (ECOA ) et la Loi sur la Commission fédérale du commerce (Loi FTC).

Bien que l’OCC, comme les autres régulateurs bancaires “prudentiels” (par exemple, la Réserve fédérale et la Federal Deposit Insurance Corporation), ait longtemps exigé de ses banques supervisées qu’elles sélectionnent les fournisseurs, les partenaires de coentreprise et d’autres “tiers”, les directives de 2014 marquaient la première fois que l’OCC a demandé aux banques de protéger leurs clients existants en contrôlant une contrepartie. Il est à noter que les préoccupations de l’OCC ne se sont pas arrêtées aux banques nationales. Au contraire, l’OCC a clairement indiqué que lorsqu’elle « prenait connaissance de préoccupations concernant les acheteurs de dette non bancaire, l’agence soumettait ces problèmes au CFPB, qui a compétence sur ces entités ». Ainsi, il existe une coordination réglementaire claire entre les agences prudentielles et de protection des consommateurs pour garantir que les pratiques de recouvrement de créances prétendument déloyales, trompeuses ou abusives ne passent pas inaperçues.

Plainte CFPB et règlement proposé

La plainte du CFPB déposée dans le district du Maryland en 2019 alléguait que le FCO avait enfreint la Consumer Financial Protection Act de 2010, la FCRA et la réglementation V en ne disposant pas de politiques et de procédures raisonnables concernant l’exactitude et l’intégrité des informations fournies aux agences d’évaluation du crédit (ARC ) et notamment aux contestations d’usurpation d’identité que les consommateurs soumettent aux agences de notation. Le CFPB a allégué que le FCO n’avait pas établi ou mis en œuvre des politiques et procédures écrites raisonnables concernant l’exactitude des informations fournies et n’avait pas mené d’enquêtes raisonnables sur les litiges de consommation indirects, ce qui a entraîné la persistance d’informations inexactes dans les rapports de crédit. Plus précisément, le CFPB a allégué que le FCO :

  • représenté que les consommateurs avaient des dettes, alors qu’il n’y avait aucune base raisonnable pour affirmer que ces consommateurs avaient des dettes
  • omis d’établir des politiques et des procédures raisonnables pour enquêter sur les litiges de consommation
  • n’a pas mené d’enquêtes raisonnables sur les litiges lorsque les consommateurs ont soumis des rapports d’usurpation d’identité

Le CFPB a également allégué que FCO avait violé la FDCPA en disant aux consommateurs qu’ils avaient des dettes alors qu’ils n’avaient pas de base raisonnable pour cette affirmation. Les conditions du règlement proposé exigent que le FCO :

  • établir des politiques et des procédures raisonnables concernant l’exactitude et l’intégrité des informations fournies
  • continuer à évaluer l’efficacité de ses politiques et procédures en créant des contrôles internes pour identifier les pratiques ou les activités qui compromettent l’exactitude ou l’intégrité des informations fournies
  • établir un programme d’examen du vol d’identité pour se prémunir contre les violations de la FCRA
  • créer des politiques et des procédures d’admission écrites pour évaluer les informations du compte avant de commencer les collectes
  • créer des politiques pour évaluer les tendances des litiges de consommation et d’autres signes de manque de fiabilité potentiel sur les comptes
  • retenir les services d’un consultant indépendant pour effectuer des examens des informations fournies et des activités de recouvrement de créances afin de faire d’autres recommandations sur ses politiques et procédures de conformité avec la loi fédérale
  • payer une pénalité de 850 000 $ au Fonds des sanctions civiles

Que faut-il faire maintenant ?

Le règlement proposé souligne aux créanciers et aux acheteurs de dettes qu’un examen approfondi est susceptible de s’étendre à l’avenir. Les acheteurs de créances doivent avoir mis en place des procédures qui cherchent à rapporter avec précision les données des consommateurs, ainsi que se conformer à ces procédures et chercher à s’améliorer là où des améliorations peuvent être apportées. Certaines considérations clés lors de l’examen des politiques de fourniture d’informations sur les consommateurs devraient inclure l’assurance que des contrôles internes existent pour examiner les politiques relatives aux données des consommateurs et également pour continuer à analyser et à mettre en œuvre de nouvelles méthodes pour améliorer l’exactitude des rapports. Les créanciers doivent faire toutes ces mêmes choses et également prendre des mesures pour confirmer que lorsqu’ils vendent une dette, les acheteurs de cette dette font de même.

Étant donné l’accent mis par le CFPB sur les problèmes d’usurpation d’identité et en particulier le non-respect présumé des rapports d’usurpation d’identité de la FTC soumis avec des litiges indirects reçus par l’intermédiaire des agences de notation, tous les créanciers et acheteurs de dettes devraient envisager de revoir leurs politiques concernant ces questions. Depuis longtemps, il est essentiel de s’assurer que les différends relatifs à l’usurpation d’identité font l’objet d’une enquête appropriée pour limiter l’exposition à la responsabilité civile. Certaines des récompenses les plus importantes de la FCRA concernent des cas d’usurpation d’identité qui n’ont pas fait l’objet d’une enquête suffisante. L’accent mis par le CFPB sur les programmes d’examen de l’usurpation d’identité renforce la nécessité d’analyser davantage la conformité dans ce domaine.

Enfin, attendez-vous à un partage continu d’informations entre les régulateurs prudentiels et le CFPB afin de générer un contrôle et une application accrus du contrôle et de l’application de la part du CFPB sur les entreprises qui acquièrent des dettes auprès des banques. En outre, le CFPB conserve le pouvoir d’appliquer les principes de diligence raisonnable des contreparties à toute vente de dette d’un prêteur non réglementé par une banque à un acheteur de dette. Les mêmes principes visant à garantir que les clients qui sont transférés à un acheteur de créances ne subissent pas de pratiques abusives de recouvrement de créances qui ont inspiré les directives de l’OCC informent également l’examen du CFPB des ventes de créances par des initiateurs non bancaires.

Le contenu de cet article est destiné à fournir un guide général sur le sujet. Des conseils spécialisés doivent être recherchés au sujet de votre situation particulière.

ARTICLES POPULAIRES SUR : La protection des consommateurs des États-Unis

Le guide du télévendeur sur le consentement TCPA

Klein Moynihan Turco srl

En raison de la capacité croissante – et du besoin – d’atteindre les consommateurs grâce à la technologie de télémarketing, les entreprises (et leurs centres d’appels) sont confrontées au risque croissant de contacter les consommateurs sans le consentement approprié de TCPA…



Source link

]]>
https://bantamnyc.com/cfpb-proposes-settlement-with-debt-collector-for-failing-to-investigate-identity-theft-reports-consumer-protection/feed/ 0
Is a Debt Management Plan Right For You? https://bantamnyc.com/is-a-debt-management-plan-right-for-you/ https://bantamnyc.com/is-a-debt-management-plan-right-for-you/#respond Wed, 25 Aug 2021 16:51:50 +0000 https://bantamnyc.com/is-a-debt-management-plan-right-for-you/ Want to pay off your debts while paying reduced interest rates? A Debt Management Plan (DMP) might be what you are looking for! When you are in the process of paying off your debt, it can all get very overwhelming. You have multiple creditors to deal with, different companies calling you every week, and don’t […]]]>


Want to pay off your debts while paying reduced interest rates? A Debt Management Plan (DMP) might be what you are looking for!

When you are in the process of paying off your debt, it can all get very overwhelming. You have multiple creditors to deal with, different companies calling you every week, and don’t even make me ask about the interest rate you’re paying.

A debt management plan is a tool for paying off your unsecured debt in 3 to 5 years, mainly credit card debt. You can sign up for a DMP, and they will negotiate a better interest rate. You only have to make one monthly payment and you can finally put the debt behind you.

Here’s exactly what a debt management plan is, everything you need to know before you consider signing up, and the best debt management companies to consult.

What is a Debt Management Plan?

A debt management plan is a debt relief option by paying off unsecured debt over time. If you can’t afford to pay off the debt in full and you’re overwhelmed with debt, this is an option. Debt management companies deal directly with your creditors for you. The goal for them is to lower your monthly payments, get penalty relief, and lower the interest rates on your outstanding debt.

The plan is usually designed by a business, such as a credit card provider or a debt management company. They will help you manage your expenses. It takes an average of 3-5 years to pay off debts, but it saves you money in the long run due to reduced interest and penalties.

A debt management plan is used to pay off credit cards, medical bills, and other types of unsecured debt.

Why Do You Need A Debt Management Plan?

Debt management plans are one of the most effective ways to get rid of debt. They help people lower their monthly payments and also make a better budget plan. Moreover, they help people organize their debts to pay them off without incurring a lot of extra costs and waive late fees.

Debt management plans help people manage their finances by consolidating their debts into one loan with a monthly lump sum payment. This is a great option because they can often save money on interest and create a budget plan.

Your monthly payment will reflect what you can afford from your current income. In addition, you must accept the amount before you start paying.

Debt management plans typically take 3 to 5 years. It starts with calculating the person’s income and then they decide how much they will pay each month.

Pros and Cons of Debt Management Plans

Here are the benefits of a debt management plan:

  • You benefit from professional advice.
  • Lowering interest payments means paying off your debt faster. It often drastically reduces your interest rates.
  • You only have to deal with one party because your debts are consolidated with one company and they will split your payment. Plus, you’ll make just one monthly payment.
  • You will receive fewer calls and mail from debt collection agencies.
  • Finally, you will have a better long-term credit rating.

Debt management plans are designed to help people who are unable to repay their debt, but it can have some downsides:

  • You will pay a small fee which is often offset by the lower interest rate, but is still a charge nonetheless.
  • Not all of your debt is included, as DMPs only focus on unsecured debt.
  • When you miss a payment, it can influence your interest rate lower.
  • The repayment takes 3-5 years, during which time you can’t open new lines of credit like credit cards.
  • Most businesses tell you to cancel your credit card accounts and not use a credit card, which means you will have less credit available.

Best Debt Management Companies

Debt management companies focus on debt resolution by offering various ways to help people pay off their debts. In turn, a debt management program receives compensation for its services.

A debt management company can help you budget, negotiate with creditors on your behalf, and provide advice and guidance to anyone struggling with debt.

Here are the best debt management companies to try, all rated A + by the Better Business Bureau.

To resolve

Resolve is a company that helps you with a variety of things. They contact your creditors to pay off fees, negotiate lower interest rates, defer monthly payments, negotiate debt cancellation, and stop collection calls.

To resolve saves you an average of $ 2,738 in the first year and you can pay them what you think is right. When you sign up for Resolve, you can choose your monthly subscription amount and tip their team whenever you feel satisfied.

Money Management International (MMI)

MMI is a non-profit debt management company available online in 50 states and in person in 25 states. Their debt management plans last between 3 and 5 years.

Start-up costs at MMI are between $ 0 and $ 75, where the average start-up costs are $ 35. Their monthly fees range from $ 0 to $ 50, with an average of $ 24.

Cambridge

Cambridge is a non-profit credit counseling agency that helps clients in 48 months, where interest rates are often reduced from 22% to around 8%. A great service that credit counseling agencies typically offer is a credit counseling session to see if your debt management plan can work for you.

Startup costs and monthly fees vary by state. Average start-up costs are $ 42 and their average monthly costs are $ 30 per month. Cambridge offers its services in all states except Minnesota.

Green Way

GreenPath Financial Wellness is a company that helps people pay off their debt within 3-5 years. Their start-up costs are between $ 0 and $ 50, averaging $ 35 per debt management plan. You also pay a monthly fee of between $ 0 and $ 75, which is an average of $ 29.

GreenPath is available in 50 states and is a great choice if you want to manage your debt online. If you are going to see them in person, they are your best bet if you live in one of the 21 states where they have physical offices.

Alternatives to a Debt Management Plan

When you want to pay off your debt, there are several options you can consider, and a Debt Management Plan (DMP) is just one of them. They are all different, so here are the alternatives to a debt management plan:

  • If you have several small debts that you can pay off on your own, you can use the debt avalanche method to pay off the remaining debts yourself.
  • Consolidation loans are for those who have good credit and want to consolidate the loans into one low interest rate loan. You can also determine the length of the loan and open new credit if needed with a debt consolidation loan.
  • Filing for bankruptcy is a great way to get out of debt when debt is more than half of your annual income. Bankruptcy will erase the slate and you can start from scratch. You can enlist the help of an experienced bankruptcy attorney to help you navigate the process and answer all of your questions as you go through this difficult time.

Frequently Asked Questions

What is a typical debt management plan?

Debt management plans are a financial strategy that reduces your overall debt through a monthly payment. They are a great choice if you are having trouble making payments or are in arrears.

Debt management plans can be beneficial because they allow you to pay off your credit cards and other debts by consolidating your payments into one monthly payment. This type of plan also helps people with bad credit because it can stop the revolving cycle of interest rates resulting in increased debt.

Is A Debt Management Plan Bad For Your Credit Score?

A debt management plan allows consumers who have past due debts to pay off those debts in one lump sum payment. The program will generally reduce the total amount of interest a person pays over the life of their debt, which can be useful if they are having difficulty making payments.

The credit reporting agencies Experian, TransUnion, and Equifax agree that a debt management plan will not negatively affect your credit rating.

However, your score may drop at first, and it may take a few months before your credit score is restored. This is because your reduced payments will be reflected on your credit report in the short term. Over time, your regular, on-time payments will ensure your credit rating bounces back.

How Long Does a Debt Management Plan Last?

Debt management plans typically last three to five years. This is the time it will take to pay off the debt and regain financial stability.

Credit card companies will charge interest rates of 10-20%. This is what makes debt management plans so attractive. When credit card companies agree to charge minimal interest on money spent on debt repayment.

Many people decide to aggressively manage their debt and use the extra money they receive to pay off their debt, which can shorten the duration of your DMP without any penalties.

Overall – Debt Management Plan

Are you looking to pay off your debts, pay off your debts faster and improve your financial situation? A Debt Management Plan is exactly what you are looking for!

A debt management plan means that you’ll be pooling your debts with a national foundation to lower interest rates, get a lower monthly payment, and get financial advice. While this dramatically cuts down on your time to pay off your debt, you should also be aware that not all of your debt is included and you should either reduce your credit usage or close your credit cards entirely.

A debt management plan is the best option for you if you can pay your monthly payments, if you have mostly unsecured debt like credit card debt, and you can go without new lines of credit for 3 to 5 months. years.

One company that stands out in the field of debt management is Resolve. Resolve lets you choose how much you want to pay monthly, and the average person saves $ 2,738 in their first year with it.

Start paying off your debt now and you’ll thank yourself later!


Michael started Your Money Geek to make personal finance fun. He has worked in personal finance for over 20 years, helping families lower taxes, increase income, and save for retirement. Michael is passionate about personal finances, side activities, and all things geeks.




Source link

]]>
https://bantamnyc.com/is-a-debt-management-plan-right-for-you/feed/ 0
Brex Launches Brex Venture Debt to Help Existing Customers Scale https://bantamnyc.com/brex-launches-brex-venture-debt-to-help-existing-customers-scale/ https://bantamnyc.com/brex-launches-brex-venture-debt-to-help-existing-customers-scale/#respond Wed, 25 Aug 2021 14:00:00 +0000 https://bantamnyc.com/brex-launches-brex-venture-debt-to-help-existing-customers-scale/ SAN FRANCISCO – (COMMERCIAL THREAD) – American fintech company Brex, the all-in-one financing solution for growing businesses, today launched Brex Venture Debt, a new product that allows select clients to access debt financing. Brex already offers credit cards, cash management accounts, expense management and bill payment software all in one dashboard for its high-growth corporate […]]]>


SAN FRANCISCO – (COMMERCIAL THREAD) – American fintech company Brex, the all-in-one financing solution for growing businesses, today launched Brex Venture Debt, a new product that allows select clients to access debt financing.

Brex already offers credit cards, cash management accounts, expense management and bill payment software all in one dashboard for its high-growth corporate customer base. With the addition of Brex Venture Debt, the company strengthens its promise to offer financial solutions to clients at every stage of their growth.

“Our mission has always been to support growing businesses, and as our clients have grown rapidly, so have our offerings,” said Henrique Dubugras, co-founder and CEO of Brex. “Our venture capital debt solution was created with scale in mind, so we can help founders take their businesses to the next level while minimizing dilution. ”

Brex Venture Debt differs from traditional banking offerings by offering clients longer terms and a faster due diligence process. Brex Venture Debt will be offered to select clients with scalable and recurring revenue in high growth industries including software as a service, consumer and fintech. The entry of Brex into the risky debt market, a key need for growing businesses, is one of many new products the company is launching in response to customer needs.

“Brex Venture Debt will help fuel our growth,” said Roberto Ortiz, co-founder and CEO of the Welcome virtual event platform, one of the product’s first customers. “The Brex offer is much more suited to the needs of growing businesses than what previously existed in the market.

Brex was launched in 2018 by offering the first corporate card of its kind specifically designed to help startups, which historically had difficulty accessing corporate credit cards from incumbents in the industry. Brex has continued to aggressively evolve by providing customers with software that enables faster onboarding times, seamless integration, faster settlement speeds, access to tailor-made products and solutions, and real-time visibility. on all their data and money streams. Brex’s customer base includes tens of thousands of businesses across the United States.

About Brex

Brex is a powerful financial stack designed to serve the next generation of growing businesses. By integrating software, services and products into a single experience, we help customers effortlessly extend the power of every dollar, so they are free to focus on big dreams and rapid growth, without worrying. unnecessary expenses. We are proud to serve tens of thousands of businesses, from small private businesses to many of America’s most beloved public brands. Learn more about brex.com.



Source link

]]>
https://bantamnyc.com/brex-launches-brex-venture-debt-to-help-existing-customers-scale/feed/ 0
Harmony Provides Product Updates, Announces Debt Settlements and Issuance of Stock Compensation https://bantamnyc.com/harmony-provides-product-updates-announces-debt-settlements-and-issuance-of-stock-compensation/ https://bantamnyc.com/harmony-provides-product-updates-announces-debt-settlements-and-issuance-of-stock-compensation/#respond Wed, 25 Aug 2021 12:30:00 +0000 https://bantamnyc.com/harmony-provides-product-updates-announces-debt-settlements-and-issuance-of-stock-compensation/ New York, New York – (Newsfile Corp. – August 25, 2021) – Harmony Energy Technology Corporation (“Harmony“or the”Society“) is pleased to announce that its Smarten Portable Power Station (” Smarten PPS “) has passed all necessary tests and recently obtained UN38.3, FCC and RoHS certifications. As part of our research and development, the Smarten PPS […]]]>


New York, New York – (Newsfile Corp. – August 25, 2021) – Harmony Energy Technology Corporation (“Harmony“or the”Society“) is pleased to announce that its Smarten Portable Power Station (” Smarten PPS “) has passed all necessary tests and recently obtained UN38.3, FCC and RoHS certifications. As part of our research and development, the Smarten PPS will begin production and sales.

UN38.3 is the current United Nations standard that lithium batteries must meet to receive certification for safe transport and has been adopted by regulators and authorities having jurisdiction around the world. The protocol includes identification / classification of lithium batteries; testing / qualification requirements; design guidelines / conditions and packaging / shipping obligations.

FCC-compliant devices follow rules and regulations set forth by the United States Federal Communications Commission (“FCC”).

RoHS (“The Restriction of Hazardous Substances Directive”) applies to rules restricting the use of hazardous substances in electrical and electronic equipment in order to protect the environment and public health.

Harmony also announces the settlement of accounts payable to an insider of the Company for a total amount of $ 6,000.00 (the “Insider Debt Settlement”), in consideration for the issuance of a total of 60 000 shares (assumed price of $ 0.10 per share). The Board of Directors of the Company believes that this insider debt settlement is an appropriate form of compensation, as well as an effective means of preserving cash flow.

To compensate two consultants, the Company issues 70,000 common shares of the Company as one-time compensation, in lieu of cash consideration at a price of $ 0.10 per share.

About Harmony

Harmony Energy Technologies Corporation is an American technology startup focused on the development of energy storage activities.

DISCLAIMER: Certain statements in this press release may be forward-looking, including those regarding timing. Forward-looking statements deal with future events and conditions and therefore involve inherent risks, uncertainties and assumptions. Actual results may differ materially from those currently anticipated in these statements. The Company relies on litigation protection for forward-looking statements. The reader is cautioned not to place undue reliance on these forward-looking statements.

The Regulation Services Provider accepts no responsibility for the adequacy or accuracy of this release.

For more information, please visit www.hetcusa.com or contact:

Harmony Energy Technology Corporation
Nick Zeng, President and CEO
Email: info@hetcusa.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/94328



Source link

]]>
https://bantamnyc.com/harmony-provides-product-updates-announces-debt-settlements-and-issuance-of-stock-compensation/feed/ 0
5 Best Student Loan Refinance Companies of 2021 – Yahoo Money https://bantamnyc.com/5-best-student-loan-refinance-companies-of-2021-yahoo-money/ https://bantamnyc.com/5-best-student-loan-refinance-companies-of-2021-yahoo-money/#respond Tue, 24 Aug 2021 21:09:02 +0000 https://bantamnyc.com/5-best-student-loan-refinance-companies-of-2021-yahoo-money/ 5 best student loan refinancing companies of 2021Yahoo Money Source link]]>



5 best student loan refinancing companies of 2021Yahoo Money



Source link

]]>
https://bantamnyc.com/5-best-student-loan-refinance-companies-of-2021-yahoo-money/feed/ 0
Are You Eligible for Debt Consolidation? Checklist https://bantamnyc.com/are-you-eligible-for-debt-consolidation-checklist/ https://bantamnyc.com/are-you-eligible-for-debt-consolidation-checklist/#respond Tue, 24 Aug 2021 13:39:15 +0000 https://bantamnyc.com/are-you-eligible-for-debt-consolidation-checklist/ If you are wondering whether or not you will qualify for debt consolidation loans, you are already trying to deal with the debt problem, which is a good sign. If you are considering the benefits of debt consolidation and whether you will qualify for them, you are also on the right track. Naturally, there is […]]]>


If you are wondering whether or not you will qualify for debt consolidation loans, you are already trying to deal with the debt problem, which is a good sign. If you are considering the benefits of debt consolidation and whether you will qualify for them, you are also on the right track.

Naturally, there is a bit of uncertainty in taking out debt consolidation loans. Although people with the worst credit score are eligible for debt settlement programs, they are not eligible for debt consolidation.

So what are the factors that make you eligible for debt consolidation? Alpine credits has a few points to share with you in this regard.

Factors to Consider in Determining Eligibility for Debt Consolidation

There are three main factors you should keep in mind when determining your eligibility for debt consolidation. They are:

  • Your Secured Loans Cannot Be Consolidated With Debt Consolidation Loans
  • You can either have a good credit rating or find lenders who offer high interest loans even with low ratings.
  • The debt service ratio should be around thirty-five percent or less

Let’s take a look at each of these three criteria in detail.

Debt consolidation is only about unsecured debt

So, are you eligible for debt consolidation? You must understand that you are only allowed to consolidate debts on your unsecured loans. As a general rule, you cannot embed debts secured by collateral. These debts include:

  • Auto loans
  • Home equity lines of credit
  • Mortgages

You are allowed to consolidate all of your unsecured debts, which are debts that do not need collateral. These debts include:

  • An unsecured personal loan
  • Student loans
  • Tax arrears
  • Credit card debt
  • Personal line of credit

While consolidating to pay off your debts, incorporate all of your current accounts. This will greatly simplify your bill payments and pay off your debts faster. Think of it this way, rather than making multiple payments, you will only need to pay one bill per month. It will be especially useful for people with multiple lines of credit with a different monthly payment date.

Good credit scores deserve good interest rates

You must have a good credit rating to get the right interest rates for your debt consolidation loan. If the credit rating does not look good due to collection accounts and missed payments, it will be difficult for you to qualify for the loans.

In many cases, individuals have such a low score on their credit reports that they simply cannot find lenders who will approve their loan. Now, even if they eventually qualify for the loan, the interest rate is higher than usual.

Also, consolidation will not help you when the interest rate you are entitled to is higher than the interest rate you are paying on your current accounts. After all, lowering interest rates won’t help you save much, and you’ll continue to pay almost the same amount every month. A debt consolidation loan will only benefit you if the interest rates are not higher than your current payments.

It is also true that lenders have different criteria for borrowers to be eligible for debt consolidation loans. While some lenders accept high credit card balances and low credit scores, others have more stringent criteria.

The fact remains that eligibility for all loans, even secured mortgages using houses as collateral, is difficult to achieve with a credit score below 600. Credit score requirements are higher for unsecured loans because the lender has no collateral to fall back on. in case you don’t repay your loan.

Debt consolidation loans are not for you when your score is low. It is better to look for other means in this case.

Lenders Consider Your Debt Service Ratio

When assessing your debt consolidation application, lenders usually take your debt service ratio into account. The debt service ratio refers to the percentage of gross monthly income required to make the minimum debt payment, which includes payments on secured debt and unsecured debt.

For example, if you earn around $ 4,000 per month and pay a minimum of $ 1,500 per month to stay up to date on your debts, the debt service ratio rises to 37.5%.

Lenders generally have different debt service ratio limits for debt consolidation loans. They will factor your new loans into the debt service ratio calculation. You might have a hard time getting approval from a lender when the ratio is too high.

According to most experts, the ratio should stay at thirty-five percent. Depending on the requirements of the lender, you might get approval even with higher ratios. But you will need a high income percentage to cover the monthly debt payment. Ultimately, you will start to live paycheck to paycheck and never be able to make ends meet.

What Happens When You Do Not Qualify For Debt Consolidation Loans?

These loans are not for every individual. Many people who are looking for such loans have reached a point where even loans cannot help them. Their debt may be too high to qualify, and their credit rating may be too low to be approved.

It’s time to consider other options when the majority of lenders tell you no. In this case, you can contact a credit counseling business. They will assess your budget and your debts to indicate the solutions adapted to your needs.

In most cases, they ask people to go for debt management plans, which are basically repayment plans organized by credit counseling agencies. It lowers the interest rate charged on the balance and allows you to pay off the debts in a single monthly payment, much like a consolidation.

The bottom line

You may be eligible for unsecured debt consolidation if your credit ratio is good and the debt service ratio is not high. However, if you cannot qualify for a debt consolidation loan, it is best to go for a debt management plan from a credit counseling agency. But remember: you have to be prepared to make the spending changes necessary for any way of working.





Source link

]]>
https://bantamnyc.com/are-you-eligible-for-debt-consolidation-checklist/feed/ 0