Anmerkungen:
In: SECURED TRANSACTIONS UNDER THE UNIFORM COMMERCIAL CODE, J.B. McDonnell, ed., Matthew Bender, 2005
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments 2005 erstellt
Beschreibung:
Consumers lacking extensive credit histories, having poor credit records, having inadequate income, or having high debt-to-income ratios may not qualify for loans under traditional underwriting standards. Consequently, alternative lenders have stepped in offering financing opportunities quickly and conveniently. The problem for consumers presents itself when the credit comes at a very high cost.The sub-prime financial services run the range from high dollar loans such as for housing to very small, short-terms loans such as what one may receive at a payday loan establishment.This chapter reviews five types of these financial transactions in what has become the fringe banking industry. These transactions are: pawn loans, auto title loans, rent-to-own loans, payday loans, and refund anticipation loans. All are expensive and allow the lenders to avoid consumer credit laws and disclosure statutes that can protect the debtor