Comments for World Wealth View http://www.prosperityproject.net/blogs/worldwealthview Discussions of worldwide investments for North Americans Tue, 06 Jan 2009 18:44:31 +0000 http://wordpress.org/?v=2.0.2 Comment on What is the Capitalist Democracy End-Game for Citizens? by cards » What is the Capitalist Democracy End-Game for Citizens? http://www.prosperityproject.net/blogs/worldwealthview/2007/04/09/what-is-the-capitalist-democracy-end-game-for-citizens/#comment-6670 Tue, 10 Apr 2007 07:44:04 +0000 http://www.prosperityproject.net/blogs/worldwealthview/2007/04/09/what-is-the-capitalist-democracy-end-game-for-citizens/#comment-6670 [...] unknown wrote an interesting post today onHere’s a quick excerptNot 10 years ago it was virtually unheard of for an Indian to hold a credit card, or moreover to make a major purchase such as a home on credit. Today, roughly 10-20% of Indians regularly use credit cards, and millions more join those … [...] […] unknown wrote an interesting post today onHere’s a quick excerptNot 10 years ago it was virtually unheard of for an Indian to hold a credit card, or moreover to make a major purchase such as a home on credit. Today, roughly 10-20% of Indians regularly use credit cards, and millions more join those … […]

]]> Comment on Earning Opportunities: Buying Domains by analie casuncad http://www.prosperityproject.net/blogs/worldwealthview/2007/03/19/earning-opportunities-buying-domains/#comment-5270 Tue, 27 Mar 2007 12:31:20 +0000 http://www.prosperityproject.net/blogs/worldwealthview/2007/03/19/earning-opportunities-buying-domains/#comment-5270 I am in to credit cards and by the way that you have half described about domaining and earning through domaining, maybe i shall consider it some time this coming April when i get the credit card that i am applying for. I'd really like to look into things like this one soon and see if i could getin the business. I am in to credit cards and by the way that you have half described about domaining and earning through domaining, maybe i shall consider it some time this coming April when i get the credit card that i am applying for.

I’d really like to look into things like this one soon and see if i could getin the business.

]]> Comment on Payday ABC Loan Review by brettbum http://www.prosperityproject.net/blogs/worldwealthview/2007/03/06/payday-abc-loan-review/#comment-3841 Thu, 08 Mar 2007 22:52:07 +0000 http://www.prosperityproject.net/blogs/worldwealthview/2007/03/06/payday-abc-loan-review/#comment-3841 USA today link from September 2006 http://www.usatoday.com/money/perfi/general/2006-09-17-refund-loans-usat_x.htm USA today link from September 2006
http://www.usatoday.com/money/perfi/general/2006-09-17-refund-loans-usat_x.htm

]]> Comment on Payday ABC Loan Review by brettbum http://www.prosperityproject.net/blogs/worldwealthview/2007/03/06/payday-abc-loan-review/#comment-3840 Thu, 08 Mar 2007 22:51:05 +0000 http://www.prosperityproject.net/blogs/worldwealthview/2007/03/06/payday-abc-loan-review/#comment-3840 Here are some more resources providing information on RAL's http://en.wikipedia.org/wiki/Refund_Anticipation_Loan Note this USA Today article cites that people receiving the Earned Income Tax Credit (an anti-poverty credit) paid $1.24 billion for RAL's. "They paid an estimated $1.24 billion in refund-anticipation loan fees for 2004" That's a lot of money being taken away from the poor, for a tax credit that they could receive for free, if they utilized the IRS free e-filing tools. Its not just H&R Block, Jackson Hewitt Settlement http://ag.ca.gov/consumers/content/jacksonhewittrefundfaq.php?PHPSESSID=1c06fdb60e9c133b255e9bca0ca237a9 Here are some more resources providing information on RAL’s
http://en.wikipedia.org/wiki/Refund_Anticipation_Loan

Note this USA Today article cites that people receiving the Earned Income Tax Credit (an anti-poverty credit) paid $1.24 billion for RAL’s.
“They paid an estimated $1.24 billion in refund-anticipation loan fees for 2004″

That’s a lot of money being taken away from the poor, for a tax credit that they could receive for free, if they utilized the IRS free e-filing tools.

Its not just H&R Block, Jackson Hewitt Settlement
http://ag.ca.gov/consumers/content/jacksonhewittrefundfaq.php?PHPSESSID=1c06fdb60e9c133b255e9bca0ca237a9

]]> Comment on Payday ABC Loan Review by brettbum http://www.prosperityproject.net/blogs/worldwealthview/2007/03/06/payday-abc-loan-review/#comment-3765 Wed, 07 Mar 2007 02:41:42 +0000 http://www.prosperityproject.net/blogs/worldwealthview/2007/03/06/payday-abc-loan-review/#comment-3765 Hi Joe, I do appreciate your comment, but I do have my facts straight. To site your example of a RAL a refund of $3300 paying $121 in interest, would be a cost rate of 3.66%. However, cost and interest rates are totally different. That is $121 paid for a loan that is usually at the longest 3 weeks (about 10 business days). When you look at the annual percentage rate of paying $121 on a $3,300 loan for 3 weeks, that interest rate is 63.56%. If the filer gets their refund back in 2 weeks, then the APR is 95.33 percent. I spoke from direct experience as I formerly prepared taxes for H&R Block, which along with Melon bank has faced several lawsuits on this issue. I did find a statistic for 2005 citing an average refund amount of $2,150 and a charges ranging from $29 - $120, which is an APR (annual percentage rate) of 40% - 700%. (http://pnnonline.org/article.php?sid=7253 or get the actual report in pdf http://www.consumerlaw.org/news/content/2006RALReport.pdf ) If admin fees are added to the cost and the calculation of interest, then the APR balloons to 1800% see http://www.consumerfed.org/pdfs/RAL_2006_Early_info.pdf ) Many people often think, that it is illegal to charge interest rates that high. The truth is its illegal for banks that are incorporated in some states to charge those rates due to usury laws. However, if those banks are incorporated in Deleware or South Dakota, states that do not have limits on interest, then it is legal. The cost up front for a RAL, may seem small in comparison to the amount of the refund, however as an interest rate (RAL stands for Rapid anticipation Loan ) it is very high. In the example you provided, if the bank was charging 20%, then the final charge would be $41.25 on a 3 week loan of $3,300. $121 is about 3 times higher. A person with a credit card, would be better off almost writing themself a convenience check for $3,300 (so they could have the money right away) and then paying their credit card off with the actual refund when it comes via direct deposit after they efile. Don't get me wrong, I'm not advocating the use of a convenience check, but to compare, if they have a 20% interest rate on their card, they would pay $42.25 in interest. Even if they had to pay the higher $75 max fee for the check, their total cost would still come in at $117.25, $4 less than a RAL under the given info above. Plus, they might be able to get reward points, or get a teaser rate at 6% (taking their interest charge down to $$12.375 + 75 = $87.375 Total!) Bottom line is that interest rates are based on time and are not computed by ignoring the time factor. Interest Charge = Rate x Time x Principal. $121 = Rate x 3 weeks of a 52 week year x $3300 $121=Rate x 3 x 3300 ------------------------ 52 $121x52 = Rate x 3 x 3300 ------------- ----------------------- 3 x 3300 3x 3300 (121x52)/(3x3300) = Rate 63.56% = Rate Hi Joe,

I do appreciate your comment, but I do have my facts straight. To site your example of a RAL a refund of $3300 paying $121 in interest, would be a cost rate of 3.66%.

However, cost and interest rates are totally different.

That is $121 paid for a loan that is usually at the longest 3 weeks (about 10 business days). When you look at the annual percentage rate of paying $121 on a $3,300 loan for 3 weeks, that interest rate is 63.56%. If the filer gets their refund back in 2 weeks, then the APR is 95.33 percent.

I spoke from direct experience as I formerly prepared taxes for H&R Block, which along with Melon bank has faced several lawsuits on this issue.

I did find a statistic for 2005 citing an average refund amount of $2,150 and a charges ranging from $29 - $120, which is an APR (annual percentage rate) of 40% - 700%. (http://pnnonline.org/article.php?sid=7253 or get the actual report in pdf http://www.consumerlaw.org/news/content/2006RALReport.pdf )

If admin fees are added to the cost and the calculation of interest, then the APR balloons to 1800% see http://www.consumerfed.org/pdfs/RAL_2006_Early_info.pdf )

Many people often think, that it is illegal to charge interest rates that high. The truth is its illegal for banks that are incorporated in some states to charge those rates due to usury laws. However, if those banks are incorporated in Deleware or South Dakota, states that do not have limits on interest, then it is legal.

The cost up front for a RAL, may seem small in comparison to the amount of the refund, however as an interest rate (RAL stands for Rapid anticipation Loan ) it is very high.

In the example you provided, if the bank was charging 20%, then the final charge would be $41.25 on a 3 week loan of $3,300. $121 is about 3 times higher.

A person with a credit card, would be better off almost writing themself a convenience check for $3,300 (so they could have the money right away) and then paying their credit card off with the actual refund when it comes via direct deposit after they efile.

Don’t get me wrong, I’m not advocating the use of a convenience check, but to compare, if they have a 20% interest rate on their card, they would pay $42.25 in interest. Even if they had to pay the higher $75 max fee for the check, their total cost would still come in at $117.25, $4 less than a RAL under the given info above. Plus, they might be able to get reward points, or get a teaser rate at 6% (taking their interest charge down to $$12.375 + 75 = $87.375 Total!)

Bottom line is that interest rates are based on time and are not computed by ignoring the time factor. Interest Charge = Rate x Time x Principal.

$121 = Rate x 3 weeks of a 52 week year x $3300

$121=Rate x 3 x 3300
————————
52

$121×52 = Rate x 3 x 3300
————- ———————–
3 x 3300 3x 3300

(121×52)/(3×3300) = Rate

63.56% = Rate

]]> Comment on Payday ABC Loan Review by Joe Sica http://www.prosperityproject.net/blogs/worldwealthview/2007/03/06/payday-abc-loan-review/#comment-3762 Wed, 07 Mar 2007 00:46:14 +0000 http://www.prosperityproject.net/blogs/worldwealthview/2007/03/06/payday-abc-loan-review/#comment-3762 "Notorious rapid refund loans"? I think you might have your facts backwards. On a per hundred dollar cost basis, the typical RAL costs a "one time" 3-5% fee (bank setup + finance charge) of the amount requested. Comparitively, the typical payday loan, as you've said, can cost a one time " 20-50%" of the amount requested. I generally give the benefit of the doubt and say 15% (or $15 per hundred). The average RAL this year is around $3300 and a typical cost for that is $121....or 3.66% of the amount requested. That's $3.66 per hundred. That doesn't sound so notorious. It is when you impute BOTH types of loans on a annual basis as the Truth In Lending Laws require that the distortion to triple digits occur. I'm not picking on anyone's particular industry. RALs and payday loans aren't for everyone but they do serve a need for many people in need. Pitting them against eachother is not the way to go, especially if you misrepresent the facts. Thank you. “Notorious rapid refund loans”? I think you might have your facts backwards. On a per hundred dollar cost basis, the typical RAL costs a “one time” 3-5% fee (bank setup + finance charge) of the amount requested. Comparitively, the typical payday loan, as you’ve said, can cost a one time ” 20-50%” of the amount requested. I generally give the benefit of the doubt and say 15% (or $15 per hundred). The average RAL this year is around $3300 and a typical cost for that is $121….or 3.66% of the amount requested. That’s $3.66 per hundred. That doesn’t sound so notorious. It is when you impute BOTH types of loans on a annual basis as the Truth In Lending Laws require that the distortion to triple digits occur. I’m not picking on anyone’s particular industry. RALs and payday loans aren’t for everyone but they do serve a need for many people in need. Pitting them against eachother is not the way to go, especially if you misrepresent the facts. Thank you.

]]> Comment on 5 Ways To Save Your Money - Foodwise by rdash http://www.prosperityproject.net/blogs/worldwealthview/2006/07/23/5-ways-to-save-your-money-foodwise/#comment-23 Sat, 02 Sep 2006 02:41:29 +0000 http://www.prosperityproject.net/blogs/worldwealthview/2006/07/23/5-ways-to-save-your-money-foodwise/#comment-23 Hi Brennan, I assume you're using Wordpress. I believe you have to edit a list of companies. Go to your Wordpress panel's Plugin Editor section. Find StockQuoteTT and click on it to open the plugin in the editor window. Look for the PHP function admin_add_stockquotett(). In that section, there is a list of companies. Add to it, and whenever a word in one of your blog posts matches the company list, a dotted line will appear under the word (company name). Moving your mouse cursor over it should make a stock chart appear (from yahoo). hope that helps. cheers, raj Hi Brennan, I assume you’re using Wordpress. I believe you have to edit a list of companies. Go to your Wordpress panel’s Plugin Editor section. Find StockQuoteTT and click on it to open the plugin in the editor window. Look for the PHP function admin_add_stockquotett(). In that section, there is a list of companies. Add to it, and whenever a word in one of your blog posts matches the company list, a dotted line will appear under the word (company name). Moving your mouse cursor over it should make a stock chart appear (from yahoo).

hope that helps.

cheers,

raj

]]> Comment on 5 Ways To Save Your Money - Foodwise by Brennan http://www.prosperityproject.net/blogs/worldwealthview/2006/07/23/5-ways-to-save-your-money-foodwise/#comment-22 Sat, 02 Sep 2006 01:57:12 +0000 http://www.prosperityproject.net/blogs/worldwealthview/2006/07/23/5-ways-to-save-your-money-foodwise/#comment-22 How did you get the stockquoteTT plugin to work!?!?! I'm tearing my hair out over here How did you get the stockquoteTT plugin to work!?!?! I’m tearing my hair out over here

]]> Comment on Finding $100 A Month To Invest by rdash http://www.prosperityproject.net/blogs/worldwealthview/2006/07/08/finding-100-a-month-to-invest/#comment-7 Sun, 09 Jul 2006 02:18:01 +0000 http://www.prosperityproject.net/blogs/worldwealthview/2006/07/08/finding-100-a-month-to-invest/#comment-7 I forgot to mention it in the article above, but if you are an American and are looking for a good source of information about online savings accounts, check out the <a href="http://www.osawatch.com/" rel="nofollow">OSAWatch</a> website. I'll try to list info about online savings accounts for other countries on this site in the future. I forgot to mention it in the article above, but if you are an American and are looking for a good source of information about online savings accounts, check out the OSAWatch website. I’ll try to list info about online savings accounts for other countries on this site in the future.

]]> Comment on Stocks To Watch: PDA Makers Palm and RIM by rdash http://www.prosperityproject.net/blogs/worldwealthview/2006/06/30/stocks-to-watch-pda-makers-palm-and-rim/#comment-6 Fri, 30 Jun 2006 21:59:03 +0000 http://www.prosperityproject.net/blogs/worldwealthview/2006/06/30/stocks-to-watch-pda-makers-palm-and-rim/#comment-6 <strong>ADDENDUM</strong>: My article above was poorly researched. What I meant was that Palm does not appear to need a merger as much as RIM, given that Palm has experienced growth in GROSS revenues. However, for various reasons, that is not a profit, and shares have dropped. RIM is now trading at more than 4 times Palm, but because they are doing well, certain unethical types launch campaigns to bring RIM down. In that sense, RIM could use an alliance to deflect some of the nonsense. Still, that's just my opinion. Other people feel Palm would benefit more from a merger. ADDENDUM: My article above was poorly researched. What I meant was that Palm does not appear to need a merger as much as RIM, given that Palm has experienced growth in GROSS revenues. However, for various reasons, that is not a profit, and shares have dropped.

RIM is now trading at more than 4 times Palm, but because they are doing well, certain unethical types launch campaigns to bring RIM down. In that sense, RIM could use an alliance to deflect some of the nonsense. Still, that’s just my opinion. Other people feel Palm would benefit more from a merger.

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