Credit Card Debts
The public sentiment towards credit card companies has developed over the past 12 months to one of animosity. Cut up credit cards are filling waste baskets and the concept of only spending what you have in hand is catching on with each gender. Women are not gleefully wielding the Visa or Master Card about as they have been over the past seven months. The old fashion fear of credit is spreading. As the credit card balances decline many American’s are resisting the urge to make additional purchases. The recent media coverage on the multitude of reasons that credit card companies are using to hike rates for existing balance carriers seem to have hit home and folks are angry.
Foreclosure and Mortgage Consumer Protection Bills
New standards for mortgage lenders are being put in place through legislation on state and federal levels. On Thursday, July 30, 2009, Oregon Gov. Ted Kulongoski signed several consumer-protection bills into law. One of those bills in particular was aimed directly at cutting the number of personal residence foreclosures in Oregon. The bill requires lenders to notify homeowners that find themselves in foreclosure danger of their right to hold a meeting with a lender. The legislation also requires that the mortgage holder make a “good-faith effort” to establish eligibility for a loan modification. The belief is that when lender and borrower sit down face to face ways to avoid foreclosure are often found.
One of the other bills signed has to do with the state signing on with a new national licensing system for home loan originators. Education requirements, background checks, and checks on adherence to the laws of states the loan originator did business in prior to starting up a home loan origination business locally will be done prior to their going in to business in the state. Negative–amortization loans will be prevented unless the loan-issuers can demonstrate how the borrower will repay the loan. A negative-amortization loan is constructed so that payments made are actually less than the interest owed each month. The unpaid amounts are simply added to the loan balance each month. This practice has a person paying interest on the interest indefinitely. A companion bill placed stricter rules on high-risk mortgages and requires lenders to supply buyers with disclosures printed in languages other than English if negotiations were conducted in a different language.
Sportsman’s Warehouse Avoids Liquidation
The sporting goods retailers’ bankruptcy court hearing resulted in approval of their blueprint for emerging from Chapter 11 status intact. This makes them the first retailer to avoid total liquidation since the bankruptcy law overhaul in 2005. Two of Sportsman’s Warehouse’s chief competitors in the Northwest were not so fortunate. Joe’s Sports and Outdoor & More were forced to liquidate and close their stores in May of this year. Sportsman’s Warehouse sold 15 stores and liquidated 23 others. Those streamlining actions plus an influx of cash from the private equity firm Seidler Equity Partners have allowed the company to continue operating 26 stores. The retail industry has been forced to make many such moves throughout this past year as a tour of the empty storefronts seen nationwide.
Coastal Credit Solutions, Inc. operates a financial market place that matches Consumers and Businesses with debt eliminating and/or alternative financing service providers. If you have over $5,000 personal or business credit card debt or are seeking small business financing, please call us 866-205-8370 for a FREE no obligation consultation.
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