Founder Of Consolidated Credit Counseling Services Reportedly Linked With Payday Loan Providers

Founder Of Consolidated Credit Counseling Services Reportedly Linked With Payday Loan Providers

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Founder Of Consolidated Credit Counseling Services Reportedly Tied To Payday Loan Providers

If you’re in dire economic straits as you thought you can remove a 275% APR cash advance simply to end up struggling to repay, are you wanting credit counseling advice from somebody by having a monetary desire for the prosperity of payday lenders? Not likely, nevertheless the creator of Consolidated Credit Counseling Services, Inc. states that their assets in the loan that is payday had no bearing on their work.

The Wall Street Journal reports that Howard Dvorkin, creator and president that is former of non-profit Consolidated Credit Counseling Services Inc. — which claims to own aided an incredible number of Us americans in reducing their financial obligation and dealing through the bankruptcy process — owns interests in businesses that offer solutions to payday loan providers, including at the very least one that offering payday advances because recently as 2012.

Another business by which Dvorkin presumably includes a stake aided to setup collaborations between payday loan providers and native reservations that are american.

One company, began at Dvorkin’s house this season, provides loan-management computer pc computer pc software utilized by payday loan providers. In 2014, the corporation had been given a patent for pc pc software with an element called the “bounce-bounce process,” that — according to the Journal’s description — takes defaulted loans and adds a financing charge while simultaneously giving the bill for the cost to a financial obligation collector.

The organization’s president informs the Journal that this is really a feature that is pro-consumer preempts additional scheduled payments from being extracted from borrowers that have missed two consecutive re re re payments.

For their component, Dvorkin claims that the organization just gives the computer pc computer software to loan providers and does have any involvement n’t in the loans.

“It’s their information. Whatever they do along with it, i possibly couldn’t let you know,” he describes. “It’s pc software. It does not handle customers. This has no relationship with anybody but other technologists.”

Regarding their assets, Dvorkin informs the Journal that, “We’re not into the payday-loan company, period.”

Their stance is the fact that while he’s committed to organizations, he’s got no control of those businesses and therefore can’t be aware of precisely what continues on there.

“There could be some individuals that could‘Wow say, that’s weird.’ But we don’t genuinely have any participation whatsoever in those companies,” he describes, later including, “I anticipate the administration groups to ethically run these lenders while strictly staying with the legislation.”

While Dvorkin has formerly publicly decried loans that are payday saying they charge “outrageous” interest levels, he now informs the Journal that “there is a spot” of these short-term, high-interest loans for borrowers without additional options.

Dvorkin, whom founded Consolidated Credit Services in 1993 and viewed it develop to an operation that is multimillion-dollar left the company in 2013 yet still has ties to Consolidated as president of a small business that delivers call-center services when it comes to business.

Although the Journal report claims there are 40 Dvorkin-associated organizations utilizing the exact same mailbox at UPS shop in a Florida strip shopping center, Dvorkin claims their focus happens to be on, which links customers with solutions providing such things as debt consolidating and credit counseling.

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About the Author

Hala Khouri, M.A., E-RYT, has been teaching the movement arts for over 20 years. Her roots are in Ashtanga and Iyengar yoga, dance, Somatic Psychology, and the juicy mystery of Life itself. She earned her B.A. in Psychology with a minor in Religion from Columbia University and has a Master's degree Counseling Psychology from Pacifica Graduate Institute.

Hala is one of the creators of Off the Mat, Into the World, along with Seane Corn and Suzanne Sterling. This is a yoga and activism initiative that aims to get yogis to take their practice outside of the yoga studio and to touch the lives of others.

Hala has taught yoga and the movement arts to a wide variety of people and places ranging from juvenile detention centers, mental health hospital and police stations, to yoga studios, conference halls and jungles. Teaching is her absolute favorite thing to do! She currently lives in Venice, California with her husband Paul and their two sons.