New rules in the works for payday loans

The CFPB also wants to limit the amount of times a lender can debit the consumer’s account, and require the lender to issue more warnings before they take money out of an account.

The proposal also would eliminate auto title loans altogether.

Do you use payday loans or auto title loans? What do you think of the new plan for lenders? Leave a comment below.

Telemarketers guilty

For anybody who is fed up with seemingly endless calls from telemarketers, this may bring a smile to your face.

For the first time, a jury has found telemarketers in violation of the Do Not Call registry.

Three Utah-based firms have been found to have engaged in “deceptive and unlawful telemarketing campaigns” in a case filed by the Federal Trade Commission.

In one example, a company called over two million numbers on the Do Not Call registry to encourage them to buy tickets to the movie “The Velveteen Rabbit.”

In all, the defendants were found to be responsible for making 99 million illegal calls.

Reverse mortgage

The commercials are convincing: if you are over 62, you can get cash for the equity in your home and keep your home.

Experts say these reverse mortgages or home equity conversion mortgages can be beneficial to some homeowners who need fast cash or a supplemental income, but their are drawbacks.

It is a loan, which means it is accruing interest, said John North, Better Business Bureau President.

“You need to realize that you are giving up some or all of the equity in your home, and though you don’t have to pay that back, family members will have to pay that back,” said North.

There are also companies that may not have your best interests in mind.

“There are lots of people that are operating less than legitimately, that are getting significant upfront fees,” said North.

Before you consider a reverse mortgage, the BBB recommends making sure you can afford the taxes, insurance , and upkeep on the home, and check with the BBB and the U.S. Department of Housing and Urban Development for reputable lenders.

Rachel Murray is a WHIO-TV consumer reporter. You can watch her reports on News Center 7, follow her on Twitter @RMurrayWHIO, and like her fan page on Facebook.