Texas Payday Loans – Uncharted 3 Blog http://uncharted3blog.com/ Fri, 24 Jun 2022 15:59:00 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://uncharted3blog.com/wp-content/uploads/2021/05/default.png Texas Payday Loans – Uncharted 3 Blog http://uncharted3blog.com/ 32 32 Predatory lenders make money from rising gas and food prices https://uncharted3blog.com/predatory-lenders-make-money-from-rising-gas-and-food-prices/ Fri, 24 Jun 2022 15:59:00 +0000 https://uncharted3blog.com/predatory-lenders-make-money-from-rising-gas-and-food-prices/ New York CNN Business — Over the past few months, Yumekia Jones, a legal assistant in the Indianola office of the Mississippi Center for Justice, has received an unusually high number of calls — a peak of about 400% — from people in urgent need of help. immediate financial. Most want to avoid payday loans, […]]]>


New York
CNN Business

Over the past few months, Yumekia Jones, a legal assistant in the Indianola office of the Mississippi Center for Justice, has received an unusually high number of calls — a peak of about 400% — from people in urgent need of help. immediate financial.

Most want to avoid payday loans, which offer quick cash against future paychecks without a credit check and come with an interest rate of over 500%. But rapidly rising prices for food, fuel and rent leave them with few options.

Inflation rates are at their highest level in 40 years and unemployment is near a half-century low. For most economists, these two realities spell out significant economic hardship.

To payday lenders, Nevertheless, they announce happy days and good times to come.

“Low unemployment and inflation generally mean that consumers may need loans for additional capital to manage unexpected spikes and expenses while earning money to repay those loans,” said David Fisher, CEO of short-term subprime lender Enova. call for results in May. The company, an online-only lender, beat quarterly profit estimates by 7.7%.

Enova declined to comment for this story.

Given the economic dynamics at play, Fisher said his company had “significantly leaned into demand with our marketing efforts” and spent more to attract new customers. It paid off. About 44% of all loans went to new customers in the last quarter, he said.

This surge in new borrowers came as U.S. consumer inflation hit its highest level in more than four decades and Americans struggled to put food on their tables and gasoline in their tanks.

The national average for a gallon of gasoline is just under $5, an increase of 61% since last year. The jump comes as many employers require workers to return to work in person. The federal minimum wage, meanwhile, still sits at $7.25 an hour, where it has been since 2009. Low-wage workers must work for about 14 hours to fill their reservoir.

About two-thirds of Americans now live paycheck to paycheck, a June LendingClub survey found. This figure jumps to 82% among workers earning less than $50,000.

The average credit score of low-income people in the United States is also falling, according to LendingClub data. About 40% of Americans earning less than $50,000 and living paycheck to paycheck have a subprime credit score below 650, which prevents them from getting a loan from a traditional lending institution or qualify for additional credits. credit. The average credit score in the United States is 714, according to Experian.

For these Americans, high interest payday loans are still readily available. These small loans, usually between $100 and $1,000, are available in more than half of lightly regulated US states. Proof of income and a bank account are all most borrowers need to walk out with cash in hand.

Current data that tracks the number of payday loans has yet to be released, but based on past trends, there’s likely an increase in borrowing, said Alex Horowitz, senior consumer finance project manager. from Pew. “Our survey data shows that approximately 70% of payday loan borrowers use the loan primarily for day-to-day expenses and to meet increased or volatile expenses.”

These loans are often incredibly expensive, but borrowers either don’t have the financial knowledge to research alternatives or don’t think they have any other option. There is currently no federal cap on maximum interest rates for small loans. Not all states allow them, and it is up to those states to decide if they will implement their own caps.

In the 32 US states that allow payday loansaverage annual interest rates range from 200% in Minnesota to 664% in Texas.

Borrowers often cannot repay the full loan amount when due, usually in two to four weeks, leading them to take out a second loan with additional fees. This creates a cycle of indebtedness that is difficult to break. Nearly 1 in 4 payday loan recipients take out additional loans nine times or more, found the Consumer Financial Protection Bureau.

Studies show that black and Latino communities are disproportionately targeted by high-cost loan providers. In Michigan, where the average payday loan interest rate is 370%, there are 7.6 payday stores per 100,000 people in areas with more than a quarter of the population black and of Latinos. This is about 50% more than in other fields, according to data provided by the Center for Responsible Lending.

Companies that offer high-cost loans say they are providing a needed service to low-income communities by providing loans to Americans that traditional banks refuse to serve. They claim that high interest rates are necessary because of the high risk of default. But consumer advocates say it’s a false narrative.

Seven major U.S. banks, including Bank of America, Wells Fargo and Truist, have created programs that offer small-dollar borrowing options with low annual interest rates, Horowitz said. They plan to look at bank history — not credit scores — to determine who qualifies for loans.

“There are 18 states and the District of Columbia that have banned payday loans and have survived very well without these predatory loan products,” said Nadine Chabrier, senior policy adviser at the Center for Responsible Lending. “There are fair and responsible loan products that have low interest rates and fees that are available for people to use.”

Shortly after the Covid-19 pandemic hit the United States, the Consumer Financial Protection Bureau repealed significant parts of a 2017 rule that required lenders to assess consumers’ ability to repay their loans. The rule, they said, would have wiped out much of the money they make from borrowers who default on their loans. By repealing parts of the rule, the CFPB said it would ensure “the continued availability of low-cost loan products for consumers who demand them.”

In a blog post, Former CFPB director Dave Ueijo expressed concern about the rule changes, saying he had issues with “any lender’s business model that depends on consumers being unable to repay their loans”.

Proponents are also concerned about new forms of lending that have emerged in recent years that are generally far less regulated than even payday loans.

According to the Center for Responsible Lending, Buy Now, Pay Later (BNPL) companies have seen their total market share increase by 200-350% over the past two years. Now, companies like Klarna and Zip are teaming up with Chevron and Texaco to let Americans fill their tanks now and pay in installments over six weeks.

BNPL’s clients tend to be Millennials and Gen Z and two-thirds of applicants are subprime borrowers, According to research by Marshall Lux, researcher at the Harvard Kennedy School.

These companies do not present themselves as lenders. BNPL is not credit but debit, with refunds taken automatically from customers’ bank accounts and without interest or charges.

In California, 91% of consumer loans issued in 2020 were BNPL loans, and 24% of financially vulnerable BNPL recipients report difficulty making payments.

BNPL’s lenders are not required by law to determine a borrower’s ability to repay their loans. There are no regulations regarding the disclosure of late payment fees, account reactivation or rejected payments.

“If people are using a credit product like this for their basic needs, I’m worried,” Chabrier said. She is concerned that BNPL clients may open several loans at once, they might lose track or have trouble repaying them all.

“A lot of people use buy now and pay later to stack their purchases from multiple vendors,” Chabrier said. “Because of the lack of subscription and whether or not they can afford these items, it becomes really unaffordable for them.”

Klarna caps late fees at 25% of the purchase amount, a far cry from the 400% interest rates charged by payday lenders, but Chabrier sees this as a lesser symptom of a larger problem.

“They’re continuing this process of extracting money from low-income people,” she said. “If people have less purchasing power with their salary, it will only get worse.”

Back in Mississippi, which has the highest poverty rate in the nation, Jones struggled to keep distressed callers out of the hands of loan sharks and into financial education programs sponsored by local banks. But it’s hard to work against so many payday lenders with huge advertising budgets, she said. The state has the highest concentration of payday lenders per capita in the nation, mostly in low-income areas or in communities of color.

Payday lenders are so prevalent in Mississippi, Jones said, that they outnumber McDonald’s restaurants by more than 5 times.

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Survey: Americans Borrow Money, Default Bills to Buy Cryptocurrency https://uncharted3blog.com/survey-americans-borrow-money-default-bills-to-buy-cryptocurrency/ Thu, 23 Jun 2022 19:00:00 +0000 https://uncharted3blog.com/survey-americans-borrow-money-default-bills-to-buy-cryptocurrency/ Over 32% of cryptocurrency investors have used a payday loan in the past, and 11% have used a payday loan or title loan to buy crypto As a retail investor, you are at a disadvantage in the crypto markets. —Robert Geoghegan, A to Z author of Web3 AUSTIN, TEXAS, USA, June 23, 2022 /EINPresswire.com/ – […]]]>

Over 32% of cryptocurrency investors have used a payday loan in the past, and 11% have used a payday loan or title loan to buy crypto

As a retail investor, you are at a disadvantage in the crypto markets.

—Robert Geoghegan, A to Z author of Web3

AUSTIN, TEXAS, USA, June 23, 2022 /EINPresswire.com/ – Investing in cryptocurrencies has been a wild ride lately.

So what happens when market conditions combine the tantalizing prospect of new global currencies and exceptionally low prices, but there is no budget flexibility to invest? Americans are turning to lenders.

And as many investors are currently adding up their losses, others are doubling down, using loans to fund more cryptocurrency purchases as they try to time the market to predict when prices will bottom out.

Many of these borrowers are already in trouble. More than 32% of cryptocurrency investors have used a payday loan in the past, and 11% have used a payday loan or title loan to invest in cryptocurrency, despite three-tier interest rates figures.

July 3 is Shitcoin Day, the anniversary of the first-ever utility token ICO, called Mastercoin, in 2013. To mark this, DebtHammer.org surveyed over 1,500 Americans to study their investment habits. Here’s what we learned.

Key points to remember

Americans use loans to pay for their investments: About 21% of crypto investors said they have used a loan to pay for their cryptocurrency investments. Personal loans were the most popular, but payday loans, title loans, mortgage refinances, home equity loans and leftover student loan funds were also used.

Hoping for a payday: 11% of previous payday loan users who bought crypto used a payday loan or title loan to buy crypto. Most borrowed between $500 and $1,000 to invest. Given that payday loans average around 400% APR, this is a big gamble.

Investors are getting into debt: Nearly 19% of respondents said they had trouble paying at least one bill because of the amount of money they had invested in cryptocurrency, and about 15% said worry about an eviction, foreclosure or car. repossession due to their investment.

Read the full report at debthammer.org/cryptocurrency-survey.

DebtHammer is an industry leader in the fight to get Americans out of debt.

Please email media@debthammer.org for more information or if you would like to schedule a phone or video call with DebtHammer Founder and CEO Jake Hill. Feel free to embed any of the visuals included in the report on your website, or use or modify the raw files as needed. Complete datasets are available upon request.

Jake Hill
DebtHammer
+1 214-542-2502
write to us here

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Does modern slavery exist? https://uncharted3blog.com/does-modern-slavery-exist/ Mon, 20 Jun 2022 03:31:43 +0000 https://uncharted3blog.com/does-modern-slavery-exist/ Juneteenth is a federal holiday now in the United States that recognizes the emancipation of enslaved black Americans. June 19, celebrated on June 19, celebrates the release of the last of 250,000 enslaved black people when 2,000 union soldiers arrived in Galveston Bay, Texas and announced this executive order. But was slavery totally abolished? Webster’s […]]]>

Juneteenth is a federal holiday now in the United States that recognizes the emancipation of enslaved black Americans. June 19, celebrated on June 19, celebrates the release of the last of 250,000 enslaved black people when 2,000 union soldiers arrived in Galveston Bay, Texas and announced this executive order. But was slavery totally abolished? Webster’s Dictionary defines slavery as the state of a person who is held in forced servitude or a situation or practice in which people are entrapped in debt and exploited. While slavery was abolished here in the United States, some say it exists in a different way today.

“Shame. Guilt. And a lot of my family members, you know, they had no money. That’s how Orletta Caldwell describes the feeling of having to take out a payday loan. In 2008, a bad divorce ruined her credit, left her almost penniless as a single mother and forced her to file for bankruptcy. “You have to pay rent,” Caldwell said. “I don’t like overdrafts. don’t like to be late. It’s an easy way. All you need is a check.

A d

“So you walked into the store?” asked Evrod Cassimy of Local 4. “No!” she replied. “Actually, I went online. You can also do it online. “Why didn’t you go into the store?” Cassimi asked. “Because I’m Orletta Caldwell, you know, Masters in Business. You don’t do that kind of stuff. “So you were embarrassed?” “I was embarrassed!”

What would ensue would be a cycle of payday loans with incredibly high interest rates just to make ends meet. A $600 payday loan can come with a $75 fee and an APR of almost 400%. The $675 payday loan is taken from your next paycheque. Orletta would then have to take out another payday loan to make up for the money she paid back. She began to notice a pattern. “They heavily target minorities, people from neighborhoods of color,” she said. “When you have someone trapped…and they’re in that cycle and they can’t get out of it, that’s slavery.”

“We noticed, and data carriers, many of these convenience businesses, check advance spaces, are located in black and brown communities. Black and brown and poor and otherwise disenfranchised communities,” said Omari Hall. “There is no immediate presence of more traditional banking options in these black and brown neighborhoods.” Hall is with GreenPath Financial Wellness and has worked with 750 people this year to get them out of this payday loan cycle. He explains why credit cards and other traditional banking options are not possible.

A d

“There has always been a deserved mistrust on the part of the black and brown community of the financial services system in general,” Hall said. “This distrust comes from decades, if not centuries, of systemic disenfranchisement where there has not been a support system in place for blacks and browns and the poor to participate in this type of banking system. With very few traditional or safer alternative banking options and instead the option they have is these payday loan systems, these check cashing systems that are extremely exploitative. Exploitation resembles financial slavery.

“Do you believe that modern slavery exists?” Cassimy asked Seydi Sarr. “It always existed,” replied Sarr. Sarr refers to the types of people she sees being victims of human trafficking. This comes with the territory in the work she does with ABISA, the African Bureau for Immigration and Social Affairs.

A d

“Here in Michigan, for example, we’re known to be the epicenter of what you call modern-day human trafficking,” Sarr said. “Detroit sees a lot of missing girls. Most of the girls that are missing here are black girls. You find young black women, you find a lot of immigrant women in there.” She thinks black women are the most slaves to this world because they are the easiest to target. “Who’s going to come get you? Hmmm… Who’s coming for you? Nobody! So it’s easier to target the most vulnerable because there won’t be any real outcry to ensure that these people are found, sought after.

“Why is that a thing? How is that possible?” Cassimi asked. “It’s possible because I think we still struggle to recognize the humanity of black people. We are used to black bodies being abused. As black women, we talk a lot about how we are perceived. So a black woman can only be angry. People don’t see your pain the same way. People don’t see your tears the same way.

A d

“How does that make you feel as a black woman?” Cassimi asked. “Crazy! I’m mad! I’m mad all the time!” Sarre replied “How do we end modern slavery so that everyone is truly free?” modern slavery, we need to do a lot more work.”

This work includes the fight for equality for all humanity. This is the work that Seydi does daily at ABISA. Orletta Caldwell is working to reduce interest rates on payday loans and cash advances. “They have a ballot initiative. I want it capped at 36%,” Caldwell said.

Caldwell was able to find a way out of his financial troubles by saving only a small percentage of his own money. Today, her credit rating is repaired, she has a great job, and after completing her doctorate, she is now Dr. Orletta Caldwell. She had this message for anyone financially enslaved: “You’re not a bad person. You will get there, but you just have to be determined to get through it.

A d

For more information about GreenPath Financial Wellness, please visit: https://www.greenpath.com/

For more information about ABISA please visit: https://linktr.ee/africanbureau

Copyright 2022 by WDIV ClickOnDetroit – All Rights Reserved.

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Our bodies, our societies and our planet are inflamed for the same reasons. https://uncharted3blog.com/our-bodies-our-societies-and-our-planet-are-inflamed-for-the-same-reasons/ Sat, 18 Jun 2022 07:08:50 +0000 https://uncharted3blog.com/our-bodies-our-societies-and-our-planet-are-inflamed-for-the-same-reasons/ Activist, filmmaker and best-selling author Raj Patel was disguised as a genetically modified tomato when he encountered Rupa Marya, MD, over ten years ago. They were at a protest organized against the use of pesticides, and Marya, who is both a musician and a doctor, was performing at the event with her band on a […]]]>

Activist, filmmaker and best-selling author Raj Patel was disguised as a genetically modified tomato when he encountered Rupa Marya, MD, over ten years ago. They were at a protest organized against the use of pesticides, and Marya, who is both a musician and a doctor, was performing at the event with her band on a world tour. Rupa and April Fools. Patel says the two quickly became friends.

Patel is a widely published author, perhaps best known for his New York Times and international bestseller, The value of nothing. He is also a director as well as teacher-researcher at Lyndon B Johnson School of Public Affairs at the University of Texas, Austin. Mary is a associate professor of medicine at the University of California, San Francisco (UCSF), whose research studies the intersections of social structures and disease, and the impacts of the culture of colonialism on health. She is also Chief Executive Officer and Chair of the Board of Directors of Deep Medicine Circlea women of color, worker-led, 501(c)(3) nonprofit organization in the San Francisco Bay Area focused on decolonizing agriculture and restoring a relationship with nature through food.

Recently, Marya and Patel co-wrote the book Inflamed: Deep Medicine and the Anatomy of Injusticepublished in 2021 by Macmillan.

“We had been plotting the book for years, and it was picked up by a publisher just as the pandemic was breaking out in the United States. [in spring 2020]“, says Patel. “Our lives during the pandemic have resonated with writing. Between us, we have experienced wildfires, being climate refugees, a long COVID-19, deaths of loved ones due to COVID- 19, diseases of the food system, racism, and gun violence.We weaved that pain and anger through the book.

Their book sheds light on the connections between health and the structural injustices prevalent in modern societies, and its structure goes through different anatomical systems of the body as a framework for discussing not only the health crises facing society, but also the injustices food, racism, the climate, the medical industry. and beyond.

“The vision was to have a book that subverts the way the body is taught, as separate individual systems within the body,” explains Patel. “As you go through the book, it becomes increasingly clear that you can’t understand, say, the gut without understanding the brain and the complexity of systems within systems.”

The common thread throughout the book is inflammation, and the many interconnected ways in which our bodies, our societies, and our planet are all ‘inflamed’.

Patel says the conversation about inflammation started between him and Marya after a “powerful” lecture Marya gave at the University of Texas which he attended.

“As I drove her to the airport, it became clear that my work on food systems and peasant/worker struggles in the Global South resonated with hers on the front lines of struggles for indigenous and racial justice, and [both our works] have been linked by inflammation,” he says.

Patel explains that inflammation is the body’s natural response to the threat of damage, which is a necessary start in the healing process, that is, until the causes of inflammation become a constant.

“When damage – and the threat of it – occurs every day, the body never has a chance to heal,” he says. “The damage and the danger of damage are not evenly distributed. Social injustice – the fear of losing your car, your home or your life to powerful people for any offense, real or perceived – is something that working-class communities, women and communities of people of color can feel on a daily basis. . This threat does as much real harm as the exposures to pollution, extreme weather and daily physical harm in the workplace that these people face. The resulting inflammation puts the bodies of people in these communities into a life of worse health than the wealthiest white men on Earth could ever conceive.

As the book’s subtitle suggests, the book delves into the idea of ​​”deep medicine,” which Marya says is a way of seeing and understanding how larger social structures contribute to disease, and then working. with this understanding to rethink these structures.

The concept of deep medicine, says Marya, contrasts with “shallow medicine,” which tends to focus on the cause of illness originating from a single individual. She says that in working on the book, she and Patel were able to combine their insights and research from years of working with communities around the world into “a discussion of food systems and land use, medicine and biology, histories and cosmologies”.

With her band, Marya has toured 29 different countries over the decades. She says that by returning to the same communities many times over the years, she was able to see certain patterns emerge related to how people got sick and who did or didn’t get sick. She says these observations became the groundwork that ultimately led to the concepts covered in Inflamed.

“The book was born from these ideas while traveling,” she says. “[About 18 years ago] I started noticing that all these different groups that were marginalized or socially oppressed, or from communities that had endured colonization, were suffering. People suffered in very similar ways. I started calling it “colonized syndrome”.

She says the communities she and Patel each had a chance to see and work with informed the story they told in the book, “that our bodies, our societies and our planet are being damaged by the same cosmology that severed our relationship. with each other and to the web of life that keeps us healthy.

Patel says that once the two co-authors realized that inflammation was like a nexus between physical health and the many injustices of today’s socio-economic systems, the problem was what was it? what to include and what to omit from the book, as they began to notice evidence everywhere “linking bodily inflammation to that of the planet, and the machinations of colonial capitalism.”

“Once you see inflammation, its pathways, causes and effects, you can’t ignore it,” he says. “The New York Times ran a room about the race to steal the microbiome from indigenous communities in the Amazon to heal those in the North whose guts have been stripped bare while living in cities,” adds Patel. “This kind of colonial plunder is exactly what we predicted in the book.”

Patel says he enjoyed learning from Marya about how the body “transmits the insults of capitalism through the mind down to the cellular level.”

“Learning how payday loans are associated with higher levels of inflammatory markers, and that the best medicine is not an anti-inflammatory pill but banning payday loans, is something that surprised me. It seems obvious now, but it was a surprising thing to discover while we were writing. [the book].”

Since its publication, says Patel Inflamed has been used and quoted in movements around the world. If he could leave readers with just one takeaway from the book, he says it would be “to organize!”

“There’s nothing in the book that you can really do on your own,” he says. “Of course, eat healthy, turn off your phone at night, sleep well, exercise and spend time connected to the web of life. These are all things that, if you can do them, you probably already do. The problem is that the ability to do this is not evenly distributed. Until everyone is safe, no one is. And capitalism won’t keep everyone safe. So the drug [to cure this situation] is to go beyond capitalism. It is not something that can happen by individual will. Only by collective power. So get organized!

April M. Short is an editor, journalist and documentary editor and producer. She is a writer at Local economy of peace, a project of the Independent Media Institute. Previously, she was an editor at AlterNet as well as an award-winning senior editor for the Santa Cruz, Calif., weekly..

Source: Independent Media Institute

Credit line: This article was produced by Local economy of peacea project of the Independent Media Institute.

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Consumers seek $8 million in attorney fees in payday loan case https://uncharted3blog.com/consumers-seek-8-million-in-attorney-fees-in-payday-loan-case/ Wed, 15 Jun 2022 00:54:00 +0000 https://uncharted3blog.com/consumers-seek-8-million-in-attorney-fees-in-payday-loan-case/ By Joyce Hanson (June 14, 2022, 8:54 p.m. EDT) – Consumers who sued the owners of the now defunct payday lender Think Finance have asked a federal judge in Virginia for more than $8 million in legal fees and expenses. attorney following his preliminary approval of their $44.5 million class action settlement. The preliminary settlement […]]]>
By Joyce Hanson (June 14, 2022, 8:54 p.m. EDT) – Consumers who sued the owners of the now defunct payday lender Think Finance have asked a federal judge in Virginia for more than $8 million in legal fees and expenses. attorney following his preliminary approval of their $44.5 million class action settlement.

The preliminary settlement follows years of litigation in multiple jurisdictions and stems from allegations that Think Finance used businesses owned by Native American tribes as fronts to charge excessively high interest rates, according to the consumer petition Friday for $8.3 million in attorney fees as well as $20,000 in service awards to each of the 13 named plaintiffs.

“The lawyers of the group have taken this case…

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How a chewing gum heir fell into a sticky weed situation https://uncharted3blog.com/how-a-chewing-gum-heir-fell-into-a-sticky-weed-situation/ Sun, 12 Jun 2022 14:41:39 +0000 https://uncharted3blog.com/how-a-chewing-gum-heir-fell-into-a-sticky-weed-situation/ But less than six months after signing that deal, Parallel’s underlying financial issues began to surface. In September 2021, the plan to go public via the SPAC deal imploded. Ceres Acquisition Corp. declined to comment for this story, but Reuters reported at the time that the parties have decided by mutual agreement to abandon the […]]]>

But less than six months after signing that deal, Parallel’s underlying financial issues began to surface.

In September 2021, the plan to go public via the SPAC deal imploded. Ceres Acquisition Corp. declined to comment for this story, but Reuters reported at the time that the parties have decided by mutual agreement to abandon the merger and that SPAC had lost faith in Parallel’s financial projections on which it had relied to close the deal.

Difficulties accessing capital due to federal illegality have helped make SPACs a popular way for cannabis companies to access public markets in recent years, thanks to lower barriers than a traditional IPO. . SPACs – also known as “blank check corporations” – entice investors for the express purpose of acquiring another company and taking it public. Generally, if SPAC has not successfully acquired its acquisition within two years, investors are entitled to their money back.

But they have caught the attention of regulators and federal lawmakers, who have expressed concern that many of the deals are based on questionable financial numbers. The SEC has proposed rules it would impose greater disclosure requirements for SPAC transactions, bringing them in line with more traditional IPOs.

The collapse of the SPAC deal left Wrigley and other senior company officials scrambling to raise money to pay off debts and prevent the company from collapsing, according to an investor. lawsuit filed in the U.S. District Court for the Southern District of Florida in March.

The ultimate goal: to make the company attractive enough to attract a new buyer in the first half of 2022, according to the complaint.

These plaintiffs allege they were persuaded to provide $25 million on the understanding that the company would collect an equal sum from other parties, including Wrigley himself.

Parallel officials told them that “cannabis industry players were turning on their phones and queuing, unsolicited, to buy the company,” according to the complaint.

But as soon as they dispatched the funds in September 2021, according to the complaint, it became clear that Parallel was in a much worse financial situation than they had been told. The complaint alleges the following details: In August, the company had forecast revenue of $618 million for 2022. But by October, that figure had fallen to $492 million. Three months later, projected revenue for 2022 had fallen to $362 million. This group of investors also claims to have discovered shortly after committing the $25 million that Parallel was defaulting on more than $300 million in debt.

“His projections were an inflated fantasy,” the complaint reads. “We had to [$25 million investment] to make Ponzi-like payments to other investors.

Lawyers for the company declined to comment on the allegations.

It’s common to see outrageous projections in cannabis industry investment decks, in part because the pace of policy change is so unpredictable, said Matt Karnes, founder of analytics firm Greenwave Advisors. Cannabis-focused finance. Lucrative state markets like New York may seem close to legalizing marijuana, but end up taking years to do so. And even after a state legalizes weed, it often takes longer than expected for markets to be up and running.

Over the past nine months, many major cannabis companies have lowered their revenue targets or missed their projections, Karnes said. The parallel is “not out of place in this regard, it’s just that the magnitude is deeper”.

Kaufman, the New York cannabis lawyer, further points out that it is not necessarily unusual for companies to revise their financial projections downward after securing funding or to raise funds that would help repay investors. previous ones.

“It’s business. You see that in the tech world all the time,” Kaufman said. “It’s going to be very difficult to say at this stage of the proceedings” whether this was a Ponzi scheme, since Parallel had a real business.

Cherished Deals and Insider Paydays

A second investor lawsuit was filed in the Supreme Court of the State of New York in March. This group of aggrieved investors includes John Morgan, a prominent Democratic lawyer and donor known to the Florida cannabis community as “Pot Daddy.” This nickname comes from the fact that he funded the 2016 campaign to legalize medical marijuana and funded a lawsuit that opened up the market to allow cannabis to flourish. Morgan did not respond to requests for comment for this story.

It’s likely that Morgan isn’t the only prominent individual among disgruntled investors. The other plaintiffs in the lawsuit are investment vehicles registered in the British Virgin Islands and Cyprus, known to be international tax havens with strong anonymity protections.

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Review of possible financing installment loans 2022 – Forbes Advisor https://uncharted3blog.com/review-of-possible-financing-installment-loans-2022-forbes-advisor/ Thu, 09 Jun 2022 17:12:24 +0000 https://uncharted3blog.com/review-of-possible-financing-installment-loans-2022-forbes-advisor/ Although Possible Finance can quickly offer small loans to borrowers with bad credit (or no credit), it charges higher APRs than some other personal lenders. Here’s how Possible Finance’s installment loans stack up against competitors. Possible financing against upgrade Upgrade offers personal loans starting at $1,000, so it might be a better option than Possible […]]]>

Although Possible Finance can quickly offer small loans to borrowers with bad credit (or no credit), it charges higher APRs than some other personal lenders. Here’s how Possible Finance’s installment loans stack up against competitors.

Possible financing against upgrade

Upgrade offers personal loans starting at $1,000, so it might be a better option than Possible Finance if you need to borrow more than $500. In fact, you can borrow up to $50,000 with the upgrade and APRs start around 6% and go up to 36%. Since Upgrade’s rates are much more competitive than those of Possible Finance, it may be worth checking to see if you qualify for one of its personal loans before borrowing a Possible installment loan.

The upgrade requires a minimum credit score of 580 to qualify, making it a viable option for potential borrowers with damaged credit.

Related: Personal Loans Review Upgrade

Possible financing against SoFi

Possible Finance offers small loans up to $500, but SoFi funds personal loans between $5,000 and $100,000. SoFi’s competitive APRs start around 6%, but you’ll need to pass a credit check to qualify. SoFi requires a minimum credit score of 650. If you cannot qualify on your own, you may consider applying with a co-borrower, such as a spouse or trusted friend.

Related: SoFi Personal Loans Review

Possible financing against LightStream

Similar to SoFi, LightStream also offers personal loans from $5,000 to $100,000, depending on the purpose of the loan, with competitive APRs starting in the low single digits. While Possible Finance finances short-term loans, LightStream allows you to repay your loans over two to 20 years. You must have a minimum credit score of 660 to qualify for a LightStream personal loan.

Related: LightStream Personal Loans Review

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Vodka Maker provides $250,000 in grants to help small businesses grow https://uncharted3blog.com/vodka-maker-provides-250000-in-grants-to-help-small-businesses-grow/ Thu, 09 Jun 2022 12:56:31 +0000 https://uncharted3blog.com/vodka-maker-provides-250000-in-grants-to-help-small-businesses-grow/ Offer entrepreneurs a toast of funding injection, Tito’s Craft Vodka offers $250,000 in grants to help entrepreneurs expand their business. The vodka maker will offer 10 grants worth $25,000 each to small business owners. The funding is tied to its “Love, Tito’s Small Business Grant Program”. The Austin, Texas-based company partners with the Equity Opportunities […]]]>
Offer entrepreneurs a toast of funding injection, Tito’s Craft Vodka offers $250,000 in grants to help entrepreneurs expand their business.

The vodka maker will offer 10 grants worth $25,000 each to small business owners. The funding is tied to its “Love, Tito’s Small Business Grant Program”. The Austin, Texas-based company partners with the Equity Opportunities Fund as administrator of the grant fund. The fundraising initiative is part of a move to celebrate Tito’s 25th birthday.

According to its website, Accion Opportunity Fund works to create an inclusive and healthy financial system that supports small business owners nationwide by connecting entrepreneurs to affordable capital, educational resources, coaching and networks. “Through innovative partnerships and outreach strategies, we target underserved entrepreneurs, including entrepreneurs of color, low-income entrepreneurs and women, who often do not have access to the financial services they need. to create and grow their business.

Tito’s reports that the goal of the program “is to provide entrepreneurs with one less hurdle to overcome and one more opportunity to succeed.” according to its website.

Funding is vital. For example, 41% of Black small business owners are more likely than the average of 32% of small business owners to seek additional financing to address challenges facing their business. Data also shows that minority entrepreneurs often do not apply for small business loans for fear of rejection or that they will get lower amounts and higher interest rates if approved, according to analysis recently shared. from JPMorgan Chase which included a survey of 150 black small business owners.

Additionally, 48% of Black small business owners said they expect to get a loan or line of credit for their business in 2022. Yet only 19% were “very confident” in their business’ ability to access the capital. In contrast, about 30% of owners overall plan to get a line of credit or loan for their business this year, and 31% say they are very confident in their business’s ability to access capital. Data comes from Goldman Sachs’ 10,000 Small Business Voices “Small Businesses on the Brink” investigation.
Eligible small businesses must meet several criteria. For example, applicants must be business owners, be at least 21 years old, and their business must be based in the United States. And many businesses in a variety of industries, including banks, tobacco shops, payday lenders, and liquor-licensed companies, don’t qualify. As such, applicants would do well to check the eligibility requirements carefully to get more details and apply. here before the June 30 deadline.

Winners will be notified in July and should expect to secure funding in August.

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Propelled by (formerly) huge gains from real estate, stocks, cryptos, while “real” incomes are lagging behind? “Real” consumer spending increases, service spending increases https://uncharted3blog.com/propelled-by-formerly-huge-gains-from-real-estate-stocks-cryptos-while-real-incomes-are-lagging-behind-real-consumer-spending-increases-service-spending-increases/ Fri, 27 May 2022 18:39:05 +0000 https://uncharted3blog.com/propelled-by-formerly-huge-gains-from-real-estate-stocks-cryptos-while-real-incomes-are-lagging-behind-real-consumer-spending-increases-service-spending-increases/ You can see why some retail stocks don’t like the shift from goods to services. By Wolf Richter for WOLF STREET. Americans far outpaced inflation in April. “Real” spending on goods – what consumers buy at retailers, adjusted for inflation – rose during the month, but was down from last year’s miracle-stimulus peak. “Real” spending […]]]>

You can see why some retail stocks don’t like the shift from goods to services.

By Wolf Richter for WOLF STREET.

Americans far outpaced inflation in April. “Real” spending on goods – what consumers buy at retailers, adjusted for inflation – rose during the month, but was down from last year’s miracle-stimulus peak. “Real” spending on services (such as healthcare, travel, entertainment, etc., adjusted for inflation) has surged, after collapsing during the pandemic, as the shift in spending from goods towards services continues, a sign that the distorted recovery – the economy is normalizing. Spending on services is the most important, accounting for more than 60% of total consumer spending.

“Real” spending has increased, approaching the pre-pandemic trend.

Inflation-adjusted spending on goods and services jumped 0.7% in April from March, to a new record high, and rose 2.8% from April’s stimulus miracle. year, according to the Bureau of Economic Analysis today. It is now approaching the pre-pandemic trend, as the consumer economy normalizes to pre-pandemic growth rates, all adjusted for inflation:

“Real” spending on services has jumped, but there is still a long way to go.

Inflation-adjusted spending on services – health care, housing, education, airfare, lodging, rental cars, sporting and entertainment events, haircuts, repairs, etc. – jumped 0.5% in April from March and 5.9% year-on-year. year.

Actual spending on services eventually exceeded pre-pandemic levels and set a new record, after spending on discretionary services collapsed during the pandemic (such as airline tickets, discretionary health services, such as dentists and elective surgery, haircuts, etc.). It remains well below the pre-pandemic trend (green line), but is on the way to normalizing, with spending shifting from goods to services.

This surge in “real” spending on services over the past few months (+5.9% yoy) is what has boosted consumer spending, even as spending on goods has fallen from the crisis-fueled peaks. relaunched a year ago.

Spending on services is important: in April, it represented 61.4% of total consumer spending, but it is still down from the pre-pandemic average of more than 64%. This is an indication that spending on services, as it normalizes, will continue to grow at a disproportionate rate (so watch out for services CPI inflation, which is starting to eat away at everyone).

Real spending on non-durable goods is slowly normalizing to nosebleed levels.

Inflation-adjusted spending on non-durable goods – dominated by food, fuel and household supplies – edged up 0.2% for the month, but fell 0.5% from the stimulus peak -April miracle a year ago.

Even after the year-over-year decline, consumer spending on non-durable goods remains at nosebleed levels, up 12% from April 2019, and well above the pre-trend. -pandemic (green line). But it is gradually normalizing and returning to the pre-pandemic trend:

Real Spending on Durable Goods Suddenly Jumps Month Over Month.

So just to create another surprise about “exploited” US consumers or whatever, inflation-adjusted spending on durable goods jumped 2.3% for the month, just when you thought consumers had bought everything they needed, and were going to back off.

Compared to April’s miracle stimulus peak of last year, real spending on durable goods has fallen 6.5%. Spending remains at nosebleed levels, up 29% from April 2019, and continues to contribute to shortages and price spikes in some of these products, as well as the massive trade deficit, as many of these products are manufactured in other countries or contain components that are manufactured in other countries.

But you can see the uneven normalization, the regression to the pre-pandemic mean:

“Real” income below pre-pandemic trend.

Personal income adjusted for inflation from all sources fell 3.5% from April a year ago, when stimulus money was still coming in, but rose slightly from March (purple). This includes income from wages and salaries, dividends, interest, rentals, farms, businesses, and government transfer payments (stimulus, social security, unemployment, welfare, etc.), but does not include not capital gains. Late last year, as inflation rose, real income fell below the pre-pandemic trend and stayed there. It only increased by 6.0% compared to April 2019.

Inflation adjusted income without transfer payments rose 2.0% from a year ago and 0.3% in April from March (red line). It fell below the pre-pandemic trend at the start of the pandemic. After a partial recovery, it has lost further ground since the end of last year due to the surge in inflation and has remained essentially flat since November.

“Real” disposable income per capita looks worse.

The income data above was for aggregate income, for all consumers combined, where income growth is also fueled by rising employment and population growth.

Here is the level of “real” disposable income per capita – that is, after-tax per capita income from all sources, which was flat for the month and down 6.4% from a year ago. year, and up a tiny 1.8% from April 2019. And that’s well below pre-pandemic trends:

The substantial increase in inflation-adjusted spending and the bleak picture of inflation-adjusted income (which does not include capital gains) show that consumers – not all but enough to move the needle – are still flush with the funds of the gazillion stimulus programs and with the money they can extract from soaring house, stock and crypto prices, where consumers have earned trillions of dollars in total, some of which have already been spent, and some of which have disappeared in recent sales, and some of which they still sit on and will continue to spend.

But consumer borrowing to spend, well… not so hot.

Not adjusted for inflation: Credit card balances, excluding other revolving loans such as personal loans, fell to $840 billion in the first quarter, compared to the fourth quarter, still below the first quarter of 2020 and the first quarter of 2019, and back to where they were in the first quarter of 2008, despite 13 years of population growth and 37% CPI inflation (red line).

Other consumer loans, such as personal loans and payday loans, at $450 billion, were also below pre-financial crisis highs, despite 13 years of population growth and 37% inflation. CPI (green line).

For my in-depth discussion of consumer borrowing across all categories, delinquencies, foreclosures, third-party collections, and bankruptcies, read… Consumers Can Handle Fed Tightening: Their Debts, Delinquencies, Foreclosures, Collections and bankruptcies

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U.S. finance updates: get a check for $400 in California, $500 in Georgia, $1,000 in Michigan… https://uncharted3blog.com/u-s-finance-updates-get-a-check-for-400-in-california-500-in-georgia-1000-in-michigan/ Tue, 24 May 2022 05:20:40 +0000 https://uncharted3blog.com/u-s-finance-updates-get-a-check-for-400-in-california-500-in-georgia-1000-in-michigan/ Update the narrationSee the full narration Hello, happy Monday and welcome among us US Finance Live Blog. Like every day, we will use this live blog to bring you the latest financial news and money saving tips from across the United States of America. This includes the latest information on stimulus check benefit programs. Even […]]]>

Hello, happy Monday and welcome among us US Finance Live Blog. Like every day, we will use this live blog to bring you the latest financial news and money saving tips from across the United States of America.

This includes the latest information on stimulus check benefit programs. Even though the federal government is no longer giving out stimulus checks, several states are actually taking matters into their own hands, with a check for $400 in California, a $1,000 tax cut in Michigan,worker bonuses up to $1,000 in Georgia and even a $3,200 payment for Alaska residents.

So, in today’s live blog, we’ll be discussing all of these payments and explaining how you can claim them if you live in these states.

May 23 U.S. finance updates: The latest money-saving tips and benefit news

In addition to bringing you the latest news on benefits and raiseswe’ll also make sure you’re fully aware of other financial matters, including where to find the cheapest gas in your town and how to make that gas last longer, so you don’t have to visit the pumps if often.

Beyond that, we’ll also have more general money-saving tips here on this page, to help you make your money work in these times of very high inflation.

As it’s a Monday, there could also be important trade deals and we’ll bring them to you too, if and when they happen.

So let’s get started! We have a lot to discuss in this Live blog on Monday’s US financial news. If you stick with us you will be fully up to date with the latest financial trends and this should hopefully help you keep more of your hard earned money in your own pocket.

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