Overcoming Barriers to adoption and solutions to End Payday Debt Traps

October 16, 2017

 

 

 

Barriers to Adoption


CFPB Consumer Financial Protection Bureau Considers Proposal to End Payday Debt Traps (CFPB) announced it is considering proposing rules that would end payday debt traps by requiring lenders to take steps to make sure consumers can repay their loans. The proposals under consideration would also restrict lenders from attempting to collect payment from consumers’ bank accounts in ways that tend to rack up excessive fees. The strong consumer protections being considered would apply to payday loans, vehicle title loans, deposit advance products, and certain high-cost installment loans and open-end loans.

 

Overcoming Barriers to adoption  and solutions

 

MKG Enterprises Corp tax refund solutions reduces the debt trap by 85% since the amount of the advance is deducted from tax refunds and reduces the amount that is paid directly to the taxpayer. And freeing up a consumer cash flow allowing them be debt free from being in the payday debt trap.

 

Reduction of debt trap, Responsible Lending

 

Before a consumer is approved they must

  1. be eligible for a tax refund,

  2. not owe child support, Federal or State tax debt

  3. no FMS debt indicator and must complete FMS form 13 Authorization for release of information. https://www.fms.treas.gov/debt/dmconsent.pdf The Financial Management Service (FMS), a bureau of the United States Department of the Treasury, provides central payment services to Federal Program Agencies, operates the federal government's collections and deposit systems, overseeing a daily cash flow of $89 billion. FMS provides government-wide accounting and reporting services, and manages the collection of delinquent debt owed to the government. FMS also supports federal agencies' financial management improvement efforts in the areas of education, consulting, and accounting operations.

  4. MKG Money Service Business uses Corelogic Teletrack credit inquiry, risk assessment tool in order to pre-qualify applicants for RAC’s.

  5. ATR Ability To Repay guidelines proof of income, CIP Customer Identification Program and KYC Know Your Customer.

  6. Current filed all tax return to present tax year

  7. Active checking account

  8. Provide acceptable collateral to pre-qualify for auto title equity loan

  9.  vehicle must meet LTV Loan To Value requirements $1.882

 

 

 

 

 

 

 

 

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