http://www.syminvest.com
Source : THE DONG-A ILBO
Jul 2010
Seul, South Korea, July, 24 2010 – An investigation into finance companies began Friday after President Lee Myung-bak complained a day earlier that the companies are charging high interest rates while visiting a branch of a micro-finance foundation.
After a meeting with chief directors of micro-finance foundations at the Bankers Club in Seoul Friday, Financial Services Commission Chairman Chin Dong-soo told reporters that a probe will begin into finance companies imposing high interest rates on loans to individuals and devise countermeasures.
“A 30-percent interest rate is very high,” he said. “Through an in-depth investigation, we will devise measures to ease the burden on the working class.”
“The main operations of finance companies are leasing, installment financing and providing auto loans, but unsecured loans account for a significant share of their operations,” he added. “This means demand for livelihood funds and emergency loans is high in the market, but interest rates in the 30-percent level is excessive.”
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The marketing share of unsecured loans among finance companies is around five percent and the amount of extended loans is about three trillion won (2.5 billion U.S. dollars). The interest rate on loans for individuals at such companies is an annual average of 32.6 percent and the default rate is near the legal limit of 44 percent.
Financial authorities estimate that the financing costs of finance companies are five to nine percent and that bad debt reserves are more than five percent. Though costs for management and collecting from borrowers are included, the combined cost of financing is under 10 percent, making 30 percent excessive, they said.
To improve the interest rate systems of finance companies, the commission and the Financial Supervisory Service will soon set up a fact-finding team to analyze financing and marketing costs of such companies and conduct on-site investigations if necessary.
Financial authorities will also crack down on the illegal practice of paying high fees to loan collectors to increase their numbers.
Finance companies will also be encouraged to make interest rate cuts by removing handling fees similar to upfront interest. Generally, they impose around three percent of the loan amount as a handling fee.
Credit card companies, which had been at the center of controversy for charging high interest for cash services, eliminated handling fees early this month.
Separately, financial authorities will reduce the interest burden on the working class, who are excluded from institutional financing, by invigorating micro-finance and the “sunshine loan” system designed to lend startup and emergency funds to low-income households at low interest.
Chairman Chin said, “After the Asia-wide foreign currency crisis and the latest global financial crisis, the financial situations of low-income households with low credit ratings have gotten worse,” adding, “We should help the working class` finances to gradually allow a soft landing by expanding guaranteed sunshine loans.”
He also told the micro-finance chief directors, “I urge operators of micro-finance foundations to return to the basics and make every effort to help low-income households with low credit ratings.”
Watch the video related to finance companies
I’m Alex Villarreal with the VOA Special English Economics Report, from voaspecialenglish.com | http Big stock exchanges in the United States are linked in what is known as the national market system plan. The idea is to process deals and report the best available prices to the public as quickly as possible. But there are other ways of investing that operate outside the national market system. In the late nineteen nineties, the Securities and Exchange Commission wanted to make room for new ideas in financial trading. The commission developed new rules for exchanges and for what are known as alternative trading systems. Alternative trading systems are operated by brokers or dealers. They mainly serve big investors like retirement funds, universities and financial companies. These systems trade the same public stocks as other market players do. But they do not publicly report their trades. This secrecy explains why they also have another name: “dark pools.” As of October, there were eighty-six alternative trading systems registered with the Securities and Exchange Commission.A buy or sell order for a large amount of stock can move markets. It can influence other investors to try to buy or sell shares of that same stock. Supporters of alternative trading systems say the secrecy reduces the risk of a disorderly market. But the International Monetary Fund has concerns about alternative trading systems. It says they limit the ability of the investing public to price a security <b>…</b>
There is no best company. It's all about who will give you the best deal & finance rates. Every one is competing w/ each other. As far as this being your first loan goes, I'd go to your bank & see what you can have. Nothing is worse than being promised the moon & the stars at a dealer and leaving w/ nothing. If your credit isn't virtually spotless, your walkin'.
try to go through a credit union. they will give you a good rate and can help out. but if u have good status with any car company you can do an inhouse financing and they can give you tha lowest rate possible. you just have to check and make sure that they dont screw you on your % rate. make sure you check that. but it also depends on your credit. if your credit sucks then you wont be getting a good rate. good luck
@uodet i remember when the dems were saying the repubs were just “the party of ‘no’”. i always said to my liberal parrots “i wish that they were!!”
@hob976 Isn’t there a video of Schiff saying that, while everyone else on the panel laughed at him?
Of course, we could use a person like him right now in Washington, pointing policy makers in the right direction. Instead we have the Obama school of economics, which is the same ole shit of the last 70 years, expecting different results.
Whatever you say about Clinton, he is quite possibly the smartest President we ever had. And by the time he left office, the economy was flushed with cash. A decade later, and we’re on the brink of an economic meltdown.
Look,
.
.
ALL economic bubbles are CREATED by Governments.
.
.
PERIOD.
Its enough to make me shake my head and cry (and I never cry) when I hear libs start to recognize the problems that they ignored before and after a crisis.or when creating a future crisis like obamacare will. What did she say at 5:06 “it was suppose to make things more affordable” and then sumthing bad happened. Sounds familiar.
There is probably a credit union nearby that you can join. These are usually good sources of credit. They have low interest rates and provide a good service.
Keep well away from GE Finance and most finance companies. Their interest rates are high and their service poor.
Hope this helps.
Bankruptcy & Redistributionist Slavery is NOT “progress”.
The finance company will not give you the title until they receive the balance due on the account. The buyer is probably not going to give you the money until they know for sure they are getting the title.
Therefore you will probably have to arrange for the buyer to come with you to the finance company and complete the transaction there.
The buyer can give the finance company what is due to them and give you the balance that you're asking for. It does not matter how much profit you're making since the buyer is agreeing to the sale.
What you owe the finance company is not relevent cause that may or may not be the value of the car.
Doesn't sound like getting a loan will be hard for you (so long you have a good chunk down) what will be a problem is the interest you're hit with.. I'd shop around. You can have your credit checked for the same purchase a few times (mortgage, car, etc) in a 30 day period with no "applying too much" issues affecting your score, if you're still applying (or running your credit) after 30 days that's where it begins to affect your credit score.. So don't be afraid to let a few dealerships do credit checks and see where you stand, what you qualify for, etc.. Best to shop around, there's almost always a better deal some place else.
good luck.
People are really waking up aren’t they? lol I love it.
If you understand this, please message me and I want to get on your friends list.
We have something in common; we’re learning how to say no, and mean it.
I have one thing to say to the Handlers;
NO
Note to globalist ass faces;
get used to the word NO because you’ll be hearing ALOT more of it from now on.
Unite, get to know your neighbors, family and friends. You will be relying on them lots more in the very near future.
Unite.
better to use a credit union and check around for the best rates. 3.99%-4.50% versus 5-7% at a dealer.
Try roadloans.com
but if you really think you need a car and must finance it, check out your local credit union, or try to finance with the dealer…. but.. be prepared for really high interest rates!!!
not to worry… this, too, shall pass.
Go ahead and call the finance company. There is a good chance they put "force placed" coverage on the car. If so, that coverage will pay the finance company for their interest in the car. You will not get paid for any equity you had in the car, but the finance company may be taken care of.
An unpleasant listening experience due to only one audio channel being active in this video. I expect better from ReasonTV.
Fannie & Freddie set the requirements for ALL mortgages & purposely kept lowering the standard for mortgages – thereby qualifying more people for mortgages & placing people in mortgages they couldn’t afford. Their push to unreliable point scores, unverified mortgage reports, and exotic mortgages can ALL, I repeat ALL, be traced to Fannie & Freddie. & Thomas Woods’ “Meltdown” is very good.