Music news – Lotus And Rose http://lotusandrose.com/ Wed, 28 Sep 2022 01:00:00 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://lotusandrose.com/wp-content/uploads/2021/08/lotus.png Music news – Lotus And Rose http://lotusandrose.com/ 32 32 “80% of women don’t know how to get loans” https://lotusandrose.com/80-of-women-dont-know-how-to-get-loans/ Wed, 28 Sep 2022 01:00:00 +0000 https://lotusandrose.com/80-of-women-dont-know-how-to-get-loans/ LAHORE: An alliance of 25 organizations that advocates for the protection of women, launched four Oxfam reports here on Tuesday. In a briefing by civil society activists and journalists, Oxfam’s Dr Nasira Malik said the purpose of these studies was to identify gaps in implementation. Presentations were made by Dr. Raana, Head of Department of […]]]>

LAHORE: An alliance of 25 organizations that advocates for the protection of women, launched four Oxfam reports here on Tuesday.

In a briefing by civil society activists and journalists, Oxfam’s Dr Nasira Malik said the purpose of these studies was to identify gaps in implementation. Presentations were made by Dr. Raana, Head of Department of Gender Studies, University of Punjab. She presented an overview of the main women’s issues in three provinces, Punjab, Khyber-Pakhtunkhwa and Balochistan. His team had interviewed 1,000 women in just two or three months.

The main findings were that only a quarter of women, or 26.6%, have the ability to spend their earnings while the rest are pressured by their families. Women are more aware of their right to inheritance in Lahore and the confidence to obtain it. They are 76.4%. The pay gap is 86.4% in Lahore and 90.3% in Peshawar.

About 80% of women do not know how to get loans to start a business; 75.1% of women requested training and assistance to use a computer effectively. Dr Raana said: “In Lahore, more women are facing cyber-harassment. The implementation of anti-harassment laws first requires the formation of committees in institutions and workplaces.

Dr. Tasneem Ahmer shared his research “Bridging Information and Knowledge Gaps”. Of the women surveyed, 56% said they had bought food on credit or borrowed money from non-relatives; 43% of women were unable to pay school fees for their children; 17% said they had to take their children out of school.

Ameena Rehman’s research focused on the problems faced by women in receiving money under the Ehsaas program and the benefits of social protection. “When social protection is there, people see the importance of having CNIC, citizenship,” she said. She stressed the importance of having a mobile phone through which women know the money they are entitled to receive. She said there was a need to improve the collection sites, to organize them better, adding that there was a lack of trust in the system. LUMS researcher Maria Nazar’s research focused on the vulnerabilities of home-based workers and the need to empower them to access technology to reach people. She said, “We need to subsidize women’s access to technology and devices. Home workers need money on a daily basis. Mumkin Alliance organizer Salman Abid said that in 2010 the biggest contribution to the Women’s Protection Act was from the Mumkin Alliance.

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SVSKP Program: Start Your Own Business, West Bengal Government Will Provide Loans! Apply Like This Know Swami Vivekananda Swanirbhar Karmasanasthan Financial Plan Prakalpa Pipa News https://lotusandrose.com/svskp-program-start-your-own-business-west-bengal-government-will-provide-loans-apply-like-this-know-swami-vivekananda-swanirbhar-karmasanasthan-financial-plan-prakalpa-pipa-news/ Sun, 25 Sep 2022 00:15:38 +0000 https://lotusandrose.com/svskp-program-start-your-own-business-west-bengal-government-will-provide-loans-apply-like-this-know-swami-vivekananda-swanirbhar-karmasanasthan-financial-plan-prakalpa-pipa-news/ SVSKP Program: Start Your Own Business, West Bengal Government Will Provide Loans! Apply like this Know the financial plan of Swami Vivekananda Swanirbhar Karmasanasthan Prakalpa Skills Development: Under this scheme, any young unemployed person between the ages of 18 and 45 with a monthly household income of less than Rs 15,000 will be granted a […]]]>

SVSKP Program: Start Your Own Business, West Bengal Government Will Provide Loans! Apply like this Know the financial plan of Swami Vivekananda Swanirbhar Karmasanasthan Prakalpa

Skills Development: Under this scheme, any young unemployed person between the ages of 18 and 45 with a monthly household income of less than Rs 15,000 will be granted a loan to set up and establish their business.

Graphics: TV9 Bangla

Kolkata: The Government of West Bengal is launching the Swami Vivekananda Swanivar Bharam Sanstha Program at the initiative of Chief Minister Mamata Banerjee to create jobs. Under this scheme, any young unemployed person between the ages of 18 and 45 with a monthly household income of less than Rs 15,000 will be granted a loan to start and establish a business. In the case of partner traders with 5 or more members, this loan amount can go up to a maximum of Rs 25 lakh. Let’s discover this project in detail…

Project details

  1. In case of 1-4 person business, maximum loan can be applied up to Rs 10 lakh. The name of this project is ‘self-esteem’. Loans up to Rs. 25 lakhs can be availed in case of joint ventures of 5 or more people. Any industry or business, except agriculture, can be carried out from the money received.
  2. Entrepreneurs must invest 5% to benefit from the advantages of this project. 30% of the amount will be given by the state government as a government grant (maximum grant: Rs. 1.5 lakh for self-esteem, Rs. 3.5 lakh for self-esteem). The remaining 65% or the remaining amount will be granted in the form of a loan by public banks/financial institutions at the prevailing interest rates.
  3. Applicants for this program must obtain a work certificate if they do not have a job exchange job. For block area – Listed Officer/Gram Panchayat Pradhan, for Municipal area – Listed Officer/Councillor of Municipal Company and in case of Municipal Company – Certificate of Officer/Councillor of Municipal Company.

Eligibility for plan benefits

It is mandatory for the applicant(s) to have the following qualifications to avail the benefits of this scheme. Find out at a glance…

  1. After sanctioning the loan, said 5% amount should be deposited in the respective bank by opening a separate account.
  2. If you have already taken out a loan from a government program, you must repay that loan and be included in that program.
  3. Those who have already established a business with a small capital can obtain loans and subsidies up to the maximum limit of the program during or after the program.
  4. This form is available in every block, municipality and 15 wards of Kolkata Municipal Corporation in the state. The application form must be collected from the office of the independent block/municipal/borough employment officer by showing photo ID. And after completing the application form must be submitted there with the required documents.
  5. For any industry or business, a business license must be obtained from the relevant municipality/village panchayat.
  6. Permission must be obtained from the Department of Small Cottage Industries and the Environmental Pollution Control Board of the Government of West Bengal. Contact the relevant office for details.

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How to Reform Student Loans – Require Down Payments – InsideSources https://lotusandrose.com/how-to-reform-student-loans-require-down-payments-insidesources/ Fri, 23 Sep 2022 01:08:10 +0000 https://lotusandrose.com/how-to-reform-student-loans-require-down-payments-insidesources/ President Biden’s student loan forgiveness plan is an unprecedented executive act. The plan to cancel up to $10,000 in student debt per person earning $125,000 or less will cost taxpayers $240 billion over the next 10 years. This is patently unfair; it’s probably illegal; but worst of all, it does nothing to address the root […]]]>

President Biden’s student loan forgiveness plan is an unprecedented executive act. The plan to cancel up to $10,000 in student debt per person earning $125,000 or less will cost taxpayers $240 billion over the next 10 years. This is patently unfair; it’s probably illegal; but worst of all, it does nothing to address the root causes of the student debt problem.

Total federal student debt increased by nearly 650% between 1995 and 2017. This virtually unlimited increase in student loans has led to a sharp increase in the price of higher education: tuition at four-year public universities has increased than doubled over the period. You would think that instead of just slapping a short-term solution to the problem for students, the president would want to reverse these trends to reduce both tuition and debt for the next generation.

The good news is that we still can with a simple reform: we need to start requiring down payments on federally guaranteed student loans.

In the financial industry, down payment requirements are extremely common. For example, most borrowers must pay part of the purchase price out of pocket to purchase a home. Sometimes lenders require down payments on loans for cars and recreational vehicles. Why should it be any different with the purchase of an education?

Deposits serve several purposes. Obviously, they decrease the risk for the lender. The larger the down payment, the lower the risk of delinquency and default. The 90+ day delinquency rate on federal student loans is nearly 5%, which means the government is lending money to a lot of people — in the range of 2.17 million borrowers — who unable or unwilling to make their payments.

Installments are also good for the borrower: by putting money aside, borrowers lower their risk of default, reduce their loan principal balance, and pay less interest.

Wait, you might say, don’t down payments make buying a house and buying a car that much harder? Won’t they also act as an obstacle, preventing people from going to university who cannot afford to pay for their studies in advance?

The short answer is yes. Down payment requirements limit who can receive loans in the first place. But from another perspective, they would reduce the inflated demand for college degrees. Is this such a bad thing?

If students had to pay cash for part of their tuition, fewer people would go on to college, either because they can’t afford it or because, out of personal preference, they decide it’s not worth it. just not worth it. The simple operation of the law of supply and demand would result in a decrease in demand and a corresponding decrease in tuition fees.

So what would a student loan down payment plan look like? Suppose someone wants to attend a school that charges $10,000 in tuition for one academic year – the average cost of tuition in the state at a public university. The student gets good grades and thus gets $5,000 in scholarships, which leaves her with $5,000 to cover. Under a hypothetical reform, she (or her parents) would have to contribute a certain percentage of the net cost. So if the student were to deposit 20%, she would have to give the school $1,000 up front. She may then decide to attend a more affordable school (perhaps a community college) or simply drop out of college and immediately enter the workforce.

Under our current federal loan system, she can receive a loan to cover 100% of her remaining balance. Whether she saves money or not, the student will still have to pay $5,000, but the current system allows her to defer as many fees as she wants. And, given that the government just set a precedent for canceling student debt, she’d be foolish to pay a penny of her own money.

By allowing the student to defer the cost until she graduates, the current system encourages her to think less about comparative pricing. As a result, she might choose to attend a much more expensive out-of-state school. What does it matter to her if she won’t have to pay a dime for years – if ever?

In this example, the student exhibits a present bias, a psychological tendency in which a decision maker will favor a particular present good over their future self. Requiring the student to pay a deposit would make the actual cost more immediate for her. A down payment on the remaining tuition after scholarships at an out-of-state school would likely be much higher. This differential would reduce her current bias, ensuring that she will be more price sensitive when choosing a college.

Of course, some students will not be able to afford to attend the school of their choice if they have to put money aside. As sad as it may sound, requiring deposits has many benefits for society and for students. Restricting student loans in this way would stop rising tuition fees, making them more affordable for those who really want to go to school. And because they won’t be able to get as much funding, students will be less in debt.

Requiring students to make installments on their university expenses would not be popular; necessary political reforms are often not. But if we’re serious about reducing tuition fees and student debt, we need to think outside the box. Having students pay for part of their tuition up front is one way to achieve both goals.

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North Carolina will still tax federally canceled student loans https://lotusandrose.com/north-carolina-will-still-tax-federally-canceled-student-loans/ Tue, 20 Sep 2022 19:12:59 +0000 https://lotusandrose.com/north-carolina-will-still-tax-federally-canceled-student-loans/ RALEIGH North Carolina residents whose student loans are canceled by the federal government will still have to pay state taxes on the money they would have paid. The General Assembly could change that, but it won’t, according to Sen. Phil Berger, a Republican from Eden who leads the state Senate. Canceling student debt is a […]]]>

North Carolina residents whose student loans are canceled by the federal government will still have to pay state taxes on the money they would have paid.

The General Assembly could change that, but it won’t, according to Sen. Phil Berger, a Republican from Eden who leads the state Senate.

Canceling student debt is a policy of President Joe Biden’s administration, and therefore of his fellow Democrats. After it emerged that current North Carolina state law means former students still owe taxes — not to Uncle Sam, but to the former North State — Democrats lobbied for a change.

In late August, the State Department of Revenue announced that while the loan cancellation plan exempts borrowers from paying federal taxes on those canceled loans, the same does not apply to state taxes. . A spokesperson for the IRS said the agency would “monitor any further enactments by the General Assembly that may change the imposition of student loan forgiveness in North Carolina.”

Governor Roy Cooper, a Democrat, and State Rep. Brian Farkas, also a Democrat, have proposed a legislative change that appears to be dead in the water.

Berger told reporters Tuesday at the Legislative Building that his chamber would not take him back.

“Student loan forgiveness, number one, is a federal policy that is not backed by any federal law as far as I can see,” he said. “Secondly, if we are going to make this change to our tax policy, to our tax laws, for this type of debt forgiveness, it would be totally unfair to people who have had credit card compromises, where those are taxable, and mortgage compromises, where taxable I think that’s something that I don’t think we need to approach in that way.

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The NC State University Memorial Steeple in Raleigh, North Carolina, shown in a 2021 file photo. Ethan Hyman ehyman@newsobserver.com

PPP Comparison

The White House has criticized Republican politicians who oppose the student debt forgiveness plan for providing loan forgiveness under the Paycheck Protection Program. Cooper, too, when seeking a state tax exemption, said this month that legislative leaders “need to find a solution that treats student loan forgiveness the same way they treated forgiving. PPP loan that many of them have received”.

But PPP loans during the coronavirus pandemic were a “completely different situation,” Berger said on Tuesday, saying they were taken out “as a result of the federal government and US government shutting down the economy.” state”, and were federal law.

“In this case, we basically have an executive order from the president,” Berger said before questioning Biden’s authority to grant loan forgiveness in the first place.

According to the North Carolina Department of Revenue, the General Assembly would have to pass a section of the tax code that would include student loan forgiveness as nontaxable income if state leaders wanted to pass a change.

Regarding the state’s tax revenue from these loans, Berger said he always said that when the state got additional money, it could “increase spending to meet any real needs that exist, we can take part of it and we can give part back.

Although the state recorded a revenue surplus of more than $6 billion in 2022, lawmakers did not include any kind of taxpayer rebates or refunds in the budget, as has been proposed in the past. This year’s budget bill, which consists mostly of minor changes since budgets are two-year spending plans, included significant increases in savings funds.

The 170 seats in the General Assembly are to be filled in November. A new legislative session begins in January.

For more on North Carolina government and politics, listen to the Under the Dome political podcast from The News & Observer and NC Insider. You can find it at https://campsite.bio/underthedome or wherever you get your podcasts.

Raleigh News & Observer related stories

Dawn Baumgartner Vaughan covers North Carolina state government and politics at The News & Observer. She previously covered Durham and received the McClatchy President’s Award, the NC Open Government Coalition Sunshine Award and several awards from the North Carolina Press Association, including for politics and investigative journalism.

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The country needs more foreign loans for its development (ERD) https://lotusandrose.com/the-country-needs-more-foreign-loans-for-its-development-erd/ Sun, 18 Sep 2022 10:30:00 +0000 https://lotusandrose.com/the-country-needs-more-foreign-loans-for-its-development-erd/ TBS Report September 18, 2022, 4:30 PM Last modification: September 18, 2022, 4:32 PM US dollar and euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration “> US dollar and euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration Government stakeholders at a seminar asserted that it […]]]>

TBS Report

September 18, 2022, 4:30 PM

Last modification: September 18, 2022, 4:32 PM

US dollar and euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration

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US dollar and euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration

Government stakeholders at a seminar asserted that it is possible to accelerate the country’s development by increasing the amount of foreign loans as the pressure on debt repayment is at a bearable level.

At a seminar organized by the Economic Relations Department (ERD) on Sunday, September 18, Minister of State for Planning, Dr. Shamsul Alam, said that foreign loans should be repaid over a long period with a low rate. of interest.

“The interest on foreign loans is 0.75% to 1.5%. The repayment period for this loan is also very long,” he said, justifying the increase in the debt burden from abroad.

However, Planning Minister MA Mannan, the main guest at the event, advised caution on excessive borrowing, saying external debt plays a vital role in development.

Stressing the need to increase foreign lending until the country is developed, the state minister said Bangladesh’s current external debt is around 13% of GDP and there is scope to double it .

ERD’s Foreign Aid Budget and Accounts (FABA) Wing Chief and Additional Secretary, Md Mostafizur Rahman, presented an article and said that although the IMF gave the option of borrowing up to At 40% of GDP, Bangladesh’s debt ratio is less than 13%.

ERD Secretary Sharifa Khan, Planning Secretary Mamun Al Rashid, IMED Secretary Abu Hena Morshed Zaman and other members and officials of the Planning Commission were present at the seminar on “Management of external debt to ensure good governance” within the framework of the Knowledge-for-Development project funded by the United Nations Development Organization (UNDP).

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Financial regulators aim to ‘buy now, pay later’ https://lotusandrose.com/financial-regulators-aim-to-buy-now-pay-later/ Fri, 16 Sep 2022 21:07:00 +0000 https://lotusandrose.com/financial-regulators-aim-to-buy-now-pay-later/ Millions of Americans have adopted the practice of buying items at low cost and paying for them in installments, a model increasingly popular among retailers known as “buy now, pay later” loans. But many consumers struggle with the “pay later” part of the equation. While these loans can help consumers purchase goods they would otherwise […]]]>

Millions of Americans have adopted the practice of buying items at low cost and paying for them in installments, a model increasingly popular among retailers known as “buy now, pay later” loans. But many consumers struggle with the “pay later” part of the equation.

While these loans can help consumers purchase goods they would otherwise struggle to afford, they are largely unregulated and can lead to problems down the road. To prevent people from getting burned, the federal Consumer Financial Protection Bureau plans to develop rules for buy now, pay later lenders.

“Buy now, pay later is a rapidly growing type of loan that is closely replacing credit cards,” CFPB Director Rohit Chopra said in a statement Thursday. “We will work to ensure borrowers have similar protections whether they are using a credit card or a buy now, pay later loan.”

Buy now, pay later loans have grown in popularity alongside the rate of inflation in the United States, with some borrowers using them to purchase basic necessities such as groceries, gasoline and pet care products. company. Loans are generally interest-free and range from $50 to $1,000 and are repaid in four installments. Yet, although the loans are interest-free, they are subject to late fees if a borrower misses a payment.

In 2021, buy-now-pay-later loans totaled $24 billion, up from $2 billion in 2019, according to a CFPB report. The payment option has become ubiquitous in stores and online, forcing regulators to catch up. At the same time, the agency has seen a steady increase in the percentage of borrowers falling behind.

“To be quite frank, regulation hasn’t kept up with fintech,” Associated Press reporter Ken Sweet told CBS News.


MoneyWatch: Debt Cancellation and Inflation

06:09

While the loans are often marketed as a “zero risk” credit option, regulators note that the loans don’t have the same protections as traditional credit products. Borrowers could also be forced to make automatic payments or be subject to multiple late fees if they miss a single payment.

“Digital Watch”

According to the CFPB, providers of buy-now, pay-later loans, such as Affirm, Afterpay and Klarna, could also collect and sell consumer data, potentially threatening consumer privacy.

“[W]We find that companies that buy now, pay later are building business models dependent on digital surveillance. In some ways, these companies aren’t just lenders, they’re also advertisers and operators of virtual malls,” Chopra said. “Because they are deeply integrated as a payment mechanism for e-commerce, buy now, pay later, lenders can collect extremely detailed information. information about your buying behavior, unlike traditional cards.”

Another major concern for regulators: buy now, pay later. The loans are designed to encourage consumers to spend – and borrow – more. Meanwhile, lenders don’t provide data to major credit reporting agencies, making it easy for consumers to take out loans they can’t afford to repay and rack up debt.

In other words, buying now and paying later can fuel unhealthy financial habits that seriously threaten consumers’ financial well-being.

The CFPB said it was working on rules that would subject lenders buy now, pay later to the same type of oversight as credit card companies. It also examines the extent of data collection from lenders and works to develop credit reporting practices that reduce the risk of borrowers accumulating too much debt.

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Comparison of car loans by generation https://lotusandrose.com/comparison-of-car-loans-by-generation/ Thu, 15 Sep 2022 05:43:55 +0000 https://lotusandrose.com/comparison-of-car-loans-by-generation/ Cloth Comparison of car loans by generation Salesman giving key to customers in modern car dealership Auto loan data reveals some interesting insights into how consumers of different ages tend to finance their vehicles. Experian analyzed its consumer debt data to see how the number of car loans, average loan costs and missed payments vary […]]]>

Cloth

Comparison of car loans by generation

Salesman giving key to customers in modern car dealership

Auto loan data reveals some interesting insights into how consumers of different ages tend to finance their vehicles. Experian analyzed its consumer debt data to see how the number of car loans, average loan costs and missed payments vary across generations.

A notable trend is that US consumers born between 1965 and 1980 are more likely to have multiple car loans. These Generation X vehicle owners also spend the most on average on monthly car bills compared to other age groups. And whether it’s a pickup truck or a luxury convertible, data suggests that the older the vehicle owner, the less likely they are to make payments.

This pattern may also correspond to what is known about the differences in wealth constructed by different generations. At the start of 2022, Millennials were still lagging behind the levels of wealth accumulated by Gen Xers and Baby Boomers when they were at the same points in their lives, according to data from the Federal Reserve Bank of St. Louis.

Gen Z and millennials, more likely than older generations to have only one car loan, saw their average monthly payments increase the most of any generation year-over-year in 2022. Gen Z are between the ages of 9 and 25, and it’s too early to tell what the financial habits of the adult consumers in the group, aged 18 to 25, will look like. According to Experian’s most recent car loan data, young Americans are more likely to borrow money to buy their car than any other generation. They are also more likely to have trouble making car payments.

Of course, car owners of all ages have seen the cost of new vehicles skyrocket since the spring of 2021, triggered by increased demand amid computer chip shortages and other supply chain constraints. supply. But even before the pandemic, sticker prices had been steadily rising. At the end of the first quarter of 2013, the average cost of a new car was $31,526; in the first quarter of 2022, it had climbed to $45,927, according to Kelley Blue Book.

As prices have risen, loan terms have become longer than ever, which has also played a role in changing car loan habits. Read on to see how these trends have shaped the financial landscape of American car owners across generations.



Experian

Older generations take out fewer car loans

Bar chart showing the number of auto loans by consumer and by generation.

Members of the silent generation, born between 1928 and 1945, are the least likely to have a car loan. About half of all baby boomers, a generation now in their 60s and 60s, are paying off at least one car loan. This could indicate that older consumers are more likely to have paid off their car loans and to own their vehicle.

Older generations have generally had more time to build up their wealth and repay their debts. So it’s no surprise that 4 in 5 Gen Zers over the age of 18 have at least one car lease or loan. As of 2022, the oldest members of Generation Z reach the age of 25 and are just beginning to gain a foothold in the workforce. But estimates of Gen Z’s spending power have jumped in recent years. This growing and diverse cohort of consumers saw their gross income jump nearly 40%, from $27,779 in 2019 to $38,635 in 2020, according to the Bureau of Labor Statistics.



Experian

Generation X pays the most for monthly automatic payments

Bar chart showing the average monthly automatic payment per generation.

While millennials and Gen Z are relatively more likely to have a car loan, it’s Gen X who pays the biggest bills each month. Gen Xers are considered to be in their peak spending years and earned more income than any other generation in 2020, according to BLS data. These Americans may be financing more expensive vehicles than younger generations of consumers.

At the start of 2022, Gen X vehicle owners were paying an average of $637 per month for their auto loans. That compares to $547 for Millennials and $429 for Gen Z on average each month.

As for the biggest increase in their bills, Gen Z’s car loan repayments jumped 9.2% year-over-year between 2021 and 2022, a much larger increase than other generations. . Millennials followed with a 7.5% jump from their 2021 average.



Experian

Gen Z has the highest share of late automatic payments

Bar chart showing the percentage of each generation that is more than 30 days past due on automatic payments.

Gen Z is having the hardest time of all generational cohorts keeping up with car loan repayments. However, U.S. consumers of all generations found it harder to make on-time payments on their auto loans in early 2022 compared to last year. Year-over-year increases in late payment rates were most dramatic for millennials and Gen Z auto owners; their incidence of people currently in arrears increased by 13.4% and 12%, respectively.

An auto loan is considered past due when a monthly payment is missed by 30 days or more. Lenders may not consider a loan in default until three consecutive payments are missed, or if the payment is generally more than 90 days past due. Recovery can take place after this time. However, the time for default and repossession may vary depending on the lender.

This story originally appeared on Experian and was produced and
distributed in partnership with Stacker Studio.


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Foreign fraudsters broke federal government firewall to steal pandemic loans: audit https://lotusandrose.com/foreign-fraudsters-broke-federal-government-firewall-to-steal-pandemic-loans-audit/ Tue, 13 Sep 2022 13:20:42 +0000 https://lotusandrose.com/foreign-fraudsters-broke-federal-government-firewall-to-steal-pandemic-loans-audit/ Foreign criminal syndicates are estimated to have stolen tens of billions of dollars in pandemic relief funds, and a new report from the inspector general sheds light on how it happened. The Small Business Administration watchdog says the agency tried to block foreign applications for its Economic Disaster Loans (EIDLs), one of two main programs […]]]>

Foreign criminal syndicates are estimated to have stolen tens of billions of dollars in pandemic relief funds, and a new report from the inspector general sheds light on how it happened.

The Small Business Administration watchdog says the agency tried to block foreign applications for its Economic Disaster Loans (EIDLs), one of two main programs aimed at supporting businesses during the early pandemic shutdowns. .

But thousands of requests filed from foreign internet protocol addresses still passed through the SBA firewall, forcing the agency to issue about $1.3 billion in payments the inspector general ruled. high risk of being fraudulent.

Filing from abroad is not an automatic signal of fraud or illegal payment, but it is a major red flag, the Office of Inspector General said.

“The numerous requests submitted from foreign IP addresses are an indication of potential fraud that may involve international criminal organizations,” the inspector general said in announcing the investigation Monday evening. “The OIG is conducting ongoing investigations into international organized crime operations that solicited and stole pandemic relief funds.”

The audit did not delve into those investigations, but foreign criminal syndicates have been identified in massive amounts of fraud related to U.S. pandemic spending.

There were three major relief packages: expanded unemployment benefits, which totaled about $900 billion; the SBA’s Paycheck Protect program, which provided about $800 billion in forgivable loans to small businesses to keep them afloat; and EIDL, with approximately $342 billion in business loans, grants and advances.

Unemployment benefits were particularly vulnerable, with few early checks to weed out false claims. One estimate puts total unemployment fraud at over $200 billion, with international criminal syndicates likely accounting for well over $100 billion. Much of that money went to organizations linked to America’s adversaries in Iran and Russia.

SBA programs were a little harder to scam, though early estimates were still in the tens of billions of dollars, and the new inspector general’s report captures some of that activity.

The audit found that the SBA eliminated “millions of attempts” to submit EIDL requests from foreign IP addresses.

The audit found that SBA officials were aware of the potential and took steps to combat it with a four-tier defense.

The first layer was a firewall that was supposed to block apps from six countries with a history of fraud. The second layer was another firewall that was supposed to block any application with a foreign IP address.

Layer three was supposed to flag any foreign IPs that still passed, and layer four was a personal review by a loan officer.

The audit revealed that foreign IP addresses could access the lending system more than 233,000 times.

Nearly 42,000 applications from overseas addresses were accepted and granted, totaling $1.3 billion in loans, grants and advance payments.

When auditors went back and examined 50 requests that passed through the firewall despite coming from foreign addresses, they found that 16 were not flagged by the third layer of defense, and of the 34 flagged, the loan officer’s in-person review missed 15 of them.

The SBA and the contractor it hired to process the requests said they were confused about how foreign IP addresses were able to bypass firewalls, the audit found.

In a formal response to the audit, SBA Associate Administrator Patrick Kelley sought to put the numbers in context.

He said successful foreign intellectual property applications made up only 1% of all approved EIDL cases and that the SBA did a particularly good job of weeding out applications from the six high-risk countries, which the report did not find. appointed.

And the $1.3 billion in overseas disbursements represented less than half a percent of EIDL’s total expenditure.

Mr Kelley also said the system was put in place at a time when experts were warning of an impending economic collapse as the pandemic shutdown began.

“As a result, the initial focus of SBA’s COVID relief programs should be to provide financial relief as quickly as possible to respond to the crisis,” Kelley wrote. “While great speed was needed to develop the COVID EIDL program and to provide this economic relief to millions of small businesses affected by the pandemic; we don’t believe there is a trade-off between speed and fraud checks.

The SBA generally agreed with the inspector general’s recommendation to go back and review all applications of foreign IP addresses that came through the system and determine which ones were actually bogus. The agency said it would try to recover the money.

Nigeria, known for harboring sophisticated and determined fraudsters, led the way among foreign IP address requests with 33,477 submissions. Of these, 241 have been approved, totaling nearly $20 million.

Canada led the way in terms of dollar amount, with $183 million paid out of 3,755 claims. A total of 20,500 were submitted from Canadian addresses.

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China provides more than $30 billion in emergency loans https://lotusandrose.com/china-provides-more-than-30-billion-in-emergency-loans/ Sun, 11 Sep 2022 04:01:53 +0000 https://lotusandrose.com/china-provides-more-than-30-billion-in-emergency-loans/ In recent years, China has handed out tens of billions of dollars in secret “emergency loans” to countries threatened by financial crises, making Beijing a formidable competitor to the Western-led IMF. The bailouts represent a pivot from the huge infrastructure loans China has provided over nearly a decade under its $838 billion Belt and Road […]]]>

In recent years, China has handed out tens of billions of dollars in secret “emergency loans” to countries threatened by financial crises, making Beijing a formidable competitor to the Western-led IMF.

The bailouts represent a pivot from the huge infrastructure loans China has provided over nearly a decade under its $838 billion Belt and Road Initiative, a program that has made it the largest lender of public works fund in the world, eclipsing the World Bank.

Three of the biggest recipients of China’s bailout loans are Pakistan, Sri Lanka and Argentina, which have together received $32.83 billion since 2017, according to data compiled by AidData, a research lab of William & Mary, an American university.

Other countries have received bailout loans from Chinese state institutions, including Kenya, Venezuela, Ecuador, Angola, Laos, Suriname, Belarus, Egypt, Mongolia and Ukraine, according to AidData, which did not provide details for those countries.

“Beijing has tried to keep these countries afloat by providing emergency loan after emergency loan without asking its borrowers to restore economic policy discipline or pursue debt relief through a process coordinated restructuring with all major creditors,” said Bradley Parks, chief executive of AidData.

The research lab maintains the world’s most comprehensive database of China’s global financing activities, largely compiled from information from recipient countries. The dataset includes thousands of loans from more than 300 Chinese government institutions and public entities to 165 low- and middle-income countries.

Incomplete train tracks for the standard gauge railway line lie on the ground near Duka Moja, Kenya, one of the countries receiving rescue funds from Chinese state institutions © Luis Tato/Bloomberg

Unlike the IMF, which announces details of its credit lines, debt relief and restructuring programs to debtor countries, China operates largely in secret.

Analysts said that in most cases, the goal of its emergency loans is to prevent defaults on infrastructure loans issued under the Belt and Road Initiative. More generally, the loans aim to avoid balance of payments problems that can turn into large-scale crises such as those experienced by Asian countries in 1997 and Latin America in the 1980s.

The IMF’s austere prescriptions in the aftermath of the Asian crisis were deeply unpopular, reinforcing a backlash that persists to this day.

“It’s not about one loan or one country in particular. . . They want to have the ear of governments where the raw materials are, or the big markets, or the strategic ports, or where there is access to shipping lanes,” said Sean Cairncross, former CEO of Millennium Challenge Corporation, a US government foreign aid agency. agency. “It’s a way to narrow the strategic options for the United States and for the West, in terms of global access and influence.”

Commentators said bailout loans from China risked exacerbating the problems of indebted countries. “I see them as a major obstacle to resolving the crisis,” said Gabriel Sterne, a former IMF senior economist now at Oxford Economics, who argued that Sri Lanka’s current financial meltdown demonstrates that Beijing’s support is sometimes insufficient.

“The suspicion is that countries are seeking the loan to avoid going to the IMF, which requires painful reform,” Sterne added. “There may be circumstances in which the redemption wager works, but usually – as in the case of Sri Lanka – it makes the adjustment more painful when it actually happens.”

Parks also said China’s approach “often delays the day of reckoning.”

“When Beijing acts as an alternative lender of last resort and bails out a troubled sovereign without demanding economic policy discipline or pursuing coordinated debt rescheduling with major creditors, it is kicking the box and leaving it to d ‘others to fix the underlying solvency problem,’ he said.

A study of individual loans extended by Chinese financial institutions since 2017 to Pakistan, a key participant in the Belt and Road Initiative, shows drip support in the form of loans from public banks and SAFE , the agency that controls Beijing’s $3 billion in foreign exchange reserves.

The terms of these loans are far from concessional, often relying on a margin of around 3% above benchmark funding costs. In addition to these loans, the People’s Bank of China, the central bank, has a currency swap agreement with its Pakistani counterpart that allows Islamabad to draw funds when it needs them, according to AidData records. The PBoC declined to comment.

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PIDA approves 3 new loans to support business growth https://lotusandrose.com/pida-approves-3-new-loans-to-support-business-growth/ Fri, 09 Sep 2022 21:05:20 +0000 https://lotusandrose.com/pida-approves-3-new-loans-to-support-business-growth/ © Shutterstock The Pennsylvania Industrial Development Authority (PIDA) recently approved three new low-interest loans to support growing businesses in three counties. Plum Creek Farm in Berks County, through the Greater Berks Development Fund, has received $400,000 loan approval to build a 4,800 square foot pretzel manufacturing plant . The project will cost $1.07 million and […]]]>

© Shutterstock

The Pennsylvania Industrial Development Authority (PIDA) recently approved three new low-interest loans to support growing businesses in three counties.

Plum Creek Farm in Berks County, through the Greater Berks Development Fund, has received $400,000 loan approval to build a 4,800 square foot pretzel manufacturing plant . The project will cost $1.07 million and will create 15 full-time jobs within three years while retaining 16 positions.

Gibson-Thomas Engineering Co. in Fayette County, through Southwestern Pennsylvania Corp., secured a $270,000 loan to purchase a 10,994 square foot office building.
The project will cost $600,000 and will create seven full-time jobs within three years while maintaining seven positions.

Superior Fine Grind in Westmoreland County, through Southwestern Pennsylvania Corp., secured a $391,480 loan to construct a 7,700 square foot building. The project will cost $869,955 and will create six full-time jobs within three years while maintaining five positions.

“Ensuring Commonwealth businesses have the ability to grow and develop is vital to our economy, our communities and our livelihoods,” Governor Tom Wolf said. “The PIDA loans approved today will provide the resources these businesses need to continue to be successful here in Pennsylvania.”

PIDA has approved $400.6 million in low-interest loans since 2015, including $38.8 million this year.

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