1. Division of Finance and Corporate Securities 1 Financial Predatory Practices Diane Childs Financial Information Outreach Coordinator

2. Division of Finance and Corporate Securities 2 Our Programs  Debt Management  Lending – Payday & Consumer Finance  Financial Institutions  Pre Need  Money Transmitters  Securities  Pawnshops  Mortgage Lenders  Identity Theft

3. Division of Finance and Corporate Securities 3 What we do

4. Division of Finance and Corporate Securities 4 Submitting a complaint

5. Division of Finance and Corporate Securities 5 License or Registration 1-866-814-9710 www.dfcs.oregon.gov Check and Verify

6. Division of Finance and Corporate Securities 6 Debt Management Companies Assist with: Debt Credit repair Loan modification Bankruptcy (how to) Financial education

7. Division of Finance and Corporate Securities 7 Allowable Fees Maximum counseling, agreement fee: $50 Maximum monthly fee: $65 7.5% charge = total amount of reduced debt (debt settlement, loan mods, short sale)

8. Division of Finance and Corporate Securities Loan Modifications 8 Similar fee structure Free Help: HUD-certified foreclosure counselors 1-800-SAFENET www.foreclosurehelp.oregon.gov 0

9. Division of Finance and Corporate Securities Red Flags Debt Management 9 Settling for "pennies on the dollar" No adverse affect on credit ratings Don’t pay creditors Upfront fees

10. Division of Finance and Corporate Securities 10 Red Flags Loan Modification Stop making mortgage payments Mortgage payment to hired company Ads, mailings similar to government Performs “forensic audit”

11. Division of Finance and Corporate Securities 11 Upfront fees Solicitations: email, mail, phone or Internet pop-up ads Guarantees positive results Out-of-state attorneys (no registration needed) Combined Red Flags

12. Division of Finance and Corporate Securities 12 State of Oregon Licensed File Number, Notice Privileged and Confidential …tri-bureau credit report…owe combined total of $28,589 Call Now…eligibility expires Portland Office

13. Division of Finance and Corporate Securities 13 Actual rates charged 343% 950% 800% 2737% 90%

14. Division of Finance and Corporate Securities Legal Payday Loan Rates 14 36% annual percentage rate (APR)* One time origination fee No renewal fees Restrictions on additional loans *Interest, Fees – 154% if lender charges maximum rate, fees

15. Division of Finance and Corporate Securities Legal Consumer Loan Rates 15 36% annual percentage rate (APR) No origination fees No “bump up” to higher rate

16. Division of Finance and Corporate Securities 16 Predatory Tactics Get cash now! No credit check! Bad credit? No problem!

17. Division of Finance and Corporate Securities Identity Theft Tactics 17

18. Division of Finance and Corporate Securities 18 License 1-866-814-9710 www.dfcs.oregon.gov Check and Verify

19. Division of Finance and Corporate Securities 19 Cease-and-Desist $17,500 penalty Stop collection activity No license Excessive interest rates: 89% - 342%

20. Division of Finance and Corporate Securities 20 Check License or Registration Know legal fees, charges, interest rates Contact us: Check and Verify 1-866-814-9710 www.dfcs.oregon.gov

21. Division of Finance and Corporate Securities More Information 21 www.dfcs.oregon.gov 1-866-814-9710