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Bank of America
Rather than declare Corinthian Colleges, Inc. to be in default on their loan, Bank of America has formally announced that they will give the for-profit school more time to make up for their missed payments. Ironic, it seems, as a recent report says that some servicers of private student loans demand immediate and full repayment upon default of student loan debt.
Instead of building a new Durbin-exempt prepaid debit card, Bank of America is creating a checkless checking account that is almost the same thing. The best points of comparison to B of A's Safe Balance are products like Liquid or GoBank.
As the name implies, deposits in a Safe Balance account are "safe" from overdraft fees. By itself, this is nothing new.
Bank of America may be on the verge of implementing plans to divest from its investments in payday lenders.
A report in yesterday's Charlotte Observer seems to indicate that this decision may have been made internally in the last few months.
Bank of America said in a statement that it has not “pursued new credit relationships in the payday lending industry” for several years, and it made the decision earlier this year to get out of that line of business entirely. The bank said it is ending its current relationships with such companies over time.
It is the lack of supervision over servicers makes it possible for a property to be foreclosed upon but never sold.
The home in Durham which was pictured in this entry is among that group. A Colorado company called Specialized Loan Servicing currently has the contract to service this home. Standard & Poor's says that of
Advance America takes next step with sale to Grupo Elektra, SA: Advance America reported that the 45-day "go-shop" period, a regulatory procedure whereby a company offers to hear alternative purchase proposals, had passed without the reception of other bids.
Bank of America may be selling invalid debts to collectors: American Banker reports
The Consumer Financial Protection Bureau is clear about its intent to pay attention to how financial products are represented to the public.
"On transparency and disclosure," says Richard Cordray, "a key insight here is that more disclosures don't always make things better. As it accumulates, there can be so much dense, fine print that it can actually make things much worse. Consumers find it hard to penetrate, and they often will not read it. That's a concern, and that's why we're trying to make things more transparent, simpler and clearer with our "Know Before You Owe" project."
Here is a simple page count of the disclosures that accompany basic checking accounts at some of the big banks.
Wells Fargo: 86 pages
Even as reports continue to show that getting a mortgage loan at Bank of America is difficult for many people, SEC filings show that the Charlotte bank has no problem extending financing to firms that do offer high-cost loans.
A recent example is the loan arranged by Bank of America for America's Car Mart last October. Bank of America