Today, the Consumer Financial Protection Bureau (CFPB) ordered Continental Finance Company LLC, a subprime credit card company based in Delaware, to refund an estimated $2.7 million to approximately 98,000 consumers who were charged illegal credit card fees. The agency found that the company’s “fee-harvester” subprime credit cards misrepresented certain fees and hit consumers with illegal …
Debt relief companies know the more subprime credit that’s given out, the more business they are probably going to get. It’s just the way it works. Over the past five years or so lenders have been hesitant to extend credit to those borrowers most likely to default, the subprime consumers. And consumers have been hesitant …
I’ve been saying it all along through this financial crisis, as soon as the banks feel comfortable with their ability to manage their risk they will be back to extending credit again to high risk consumers. And I’ve also been saying that while consumer savings rates are high now, all it will take is credit …