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Banks line up to revoke ‘debt vultures’ amid rising pandemic debt



Vulnerable Australians may soon have better protection against so-called ‘debt vultures’ after other big four banks hinted they may follow NAB’s lead and abandon working with them.

NAB last week announced a crackdown on unlicensed fee-charging debt management providers (DMPs) that coincides with a rise in the number of customers accessing hardship measures, including loan deferrals.

According to NAB, 98,189 home loan customers and 39,528 businesses had deferred loans through the pandemic – with up to 20 per cent now resuming payments.

“As more Australians seek help it is important that we no longer deal with unlicensed, fee-charging debt management providers,” NAB group executive Rachel Slade said in a statement last week.

Unlicensed DMPs charge upfront fees to customers in financial strife on the understanding they can help negotiate payment plans, restructure debts and repair their credit rating.

Many do not hold a financial services licence or credit license issued by corporate regulator ASIC, despite appearing to provide such services.

However, similar services can be accessed through free, licensed financial counselling services, including the National Debt Helpline.

A NAB spokesperson on Friday confirmed to The New Daily that any new arrangements from August 17 would be subject to the crackdown.

But those who have already signed a contract with an unlicensed DMP could still seek an exit.

They may soon be joined by Commonwealth Bank, after a spokesperson confirmed to The New Daily it is reassessing how it engages with unlicensed DMPs.

“CBA is reviewing its relationship with credit repair and debt management firms,” he said on Friday.

“We are taking steps to terminate arrangements with firms we reasonably believe do not act in the best interests of our customers.”

‘Debt vultures’ prey on vulnerable Australians in debt

Melbourne woman Anger Ageur knows all too well about the predatory nature of unlicensed DMPs.

After being stood down from her job because of a work-related injury, she built up $5000 in mortgage arrears, before receiving a letter from a firm called J Daniels & Associates telling her she would soon be taken to court by ANZ (her lender).

However, she had not been contacted regarding any legal proceedings.

“I really didn’t give the letter any attention,” Ms Ageur told The New Daily.

“But less than five days later, a man came to my house and served the same letter to me directly – he told me he had been waiting there for two hours, wanted to help me through my problems, and being vulnerable at the time, it sounded too good to be true.”

Ms Ageur said after getting confirmation they would stall the legal pursuit, she signed online paperwork (with difficulty) – and that’s when the problems started.

“I went to Good Shepherd and the financial advisor told me to see a lawyer, and when I mentioned J Daniels’ name, he told me to get a copy of the contract, as they’re not a law firm,” Ms Ageur said.

“On the phone they said the first monthly payments would be $240, which was affordable to me, but the contract said they would be $1004.”

After receiving support through community lawyers, she sold her property – and a month out from settlement, her conveyancer told her there was a $7000 caveat.

“When we looked to find the source, we found it actually came from J Daniels, and they wouldn’t take it off – and the sale wouldn’t go ahead – unless we paid them that money,” Ms Ageur said.

Stronger regulation urged amid pandemic crisis

NAB’s move comes two years after a parliamentary economics enquiry found unlicensed DMPs rarely benefit a customer’s financial standing, urging the federal government to introduce a licensing system.

An ANZ spokesperson declined to comment directly on whether the bank would alter its stance on engaging with unlicensed DMPs.

However, it is understood the bank operates with such providers on a case-by-case basis, and any firms that ring significant alarm bells are escalated up to senior management for potential exclusion.

Consumer Action Law Centre senior policy officer Cat Newton told The New Daily that banks and governments must work together to introduce industry-wide regulation that diminishes the influence of ‘debt vultures’.

“With very high and hidden fees, poor-quality advice, and no requirement to meet even basic professional standards, too often these unregulated, fee-driven companies can’t be trusted to help,” Ms Newton said.

“With growing financial difficulty due to COVID-19, business will be booming for debt vultures unless the other banks, and the Federal Government, act quickly.”

Ms Ageur said she hoped banks would follow NAB to quash “sneaky” unlicensed DMPs.

“They’re fishing for vulnerable people and it’s fraud,” Ms Ageur said.

“This is stuff you would expect to happen where I’ve come from in Africa, the Middle East, but not in Australia, and that’s what p***ed me off more.”

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Solano Small Business Development Center offers Covid recovery webinars



FAIRFIELD — The Solano Small Business Development Center has several upcoming virtual webinars on website building, business planning and Covid-19 recovery.

A class on “Covid Recovery: Leadership Principles and Practices” will begin at 10:30 a.m. Tuesday. Participants will build confidence by learning to take the lead. Lisa Bishop is the instructor and has taught leadership training for more than a decade.

“Covid Recovery: Credit Repair/FICO and Credit” will take place from noon to 1:30 p.m. Thursday. Solano Small Business Development Center adviser Janeene Bier teaches secrets on how to build credit and fixing negative FICO scores.

A course in “Business Planning” is available from 2 to 4 p.m. June 24. Participants will learn how to create a business plan that meets their needs. The interactive webinar will help provide simple tools to create a plan.

“Websites Made Easy” will be taught from 4 to 6 p.m. June 28. Participants will earn how to build websites for new businesses or improve existing ones.

All webinars are free. Links are provided at the Solano Small Business Development Center Facebook page.

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5 Tips for Getting the Best VA Loan Rate



VA loans are a great benefit for eligible veterans, active duty service members, and their spouses. However, don’t take it as a given that you will be automatically offered the lowest rate just because you qualify for the program. Getting the best deal on your VA loan involves doing your due diligence and learning how to navigate the system.

Although the VA loan program offers favorable terms like no down payment and no private mortgage insurance (PMI) to those who qualify, the loans themselves are still issued through private financial institutions, just like any other mortgage. And while it is true VA loan rates are generally low compared to conventional mortgages, they will still fluctuate depending on your personal info and changes in the market.

With that in mind, here are a few tips to make sure you are saving money and making the most out of your well-deserved VA loan benefit.

1. Understand VA loan types

The VA benefit includes several loan options available for purchase, refinance or home improvements for those who meet the service requirements and have their certificate eligibility (COE).

Interest rates for VA loans can vary significantly depending on the type of loan you choose. That’s because most lenders have different eligibility requirements tied to fixed and adjustable rate loan products.

Like other home loan programs, refinance rates for VA loans generally tend to be higher than purchase loans. Your mortgage term, or the length of time you have to repay the loan, also influences your interest rate.

If you opt to repay your mortgage over a short period, with a 10- or 15-year mortgage, these terms often have a lower interest rate and overall cost. However, shorter term loans have higher monthly payments.

Meanwhile, a traditional 30-year loan may have lower monthly installments — but the overall cost and interest rate will be higher because the bank is taking on more risk.

Additionally, the VA has several other programs that may prove a better deal. Make sure to ask your lender about rates on the following items if you are interested and believe you qualify:

  • Energy Efficient Mortgage: allows qualified borrowers to bundle the cost of acceptable home energy improvements into their purchase, refinancing or VA streamline refi.
  • Native American Direct Loan: If you or your spouse is Native American, you can get a loan to buy, build, or improve a home on federal trust land.
  • Cash-Out Refinance: With a cash-out refi, you can replace your current VA loan with a new term and rate. You can also borrow against your home equity and use the cash to fulfill other financial goals.
  • Interest Rate Reduction Refinance (IRRRL): An IRRRL requires less paperwork than a cash-out refinance, and often doesn’t require an appraisal. This can save you underwriting fees and time, hence it being regularly referred to as a “streamline refinance.”

2. Lower your debt-to-income ratio

To calculate your VA loan rate, lenders will take a holistic look at your monthly expenses to determine your ability to repay a mortgage. Unlike other home loan programs, the VA considers your residual income, or your monthly income after taxes and debts are paid off.

Similarly, lenders in the VA home loan program also look at your debt-to-income ratio, which is your total debt divided by your gross income. Your DTI generally includes major installment debts such as mortgages, student loans, credit card debt, and car loans pulled from your credit report.

As a rule of thumb, the VA recommends a debt-to-income ratio of at most 41%, including your mortgage. However, lenders set their own maximum for DTI on VA loans and may be willing to accept a higher DTI in exchange for a higher interest rate. They may also have some guidelines in terms of credit scores they are willing to accept.

To lower your DTI, you can start by paying off debts such as your credit cards and minimizing expenses.

You can work on your credit by evaluating your credit report from the three major credit bureaus — Experian, TransUnion and Equifax. You can obtain a free copy of each bureau’s credit report annually at (Due to the COVID-19 pandemic, free reports will be available weekly until April 2022.) Having your credit report on hand can help you identify any errors or negative marks you can change and repair your credit, if need be.

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3. Determine whether or not you should make a down payment

VA-backed loans don’t require a down payment. However, there are circumstances in which a down payment may be necessary or worthwhile.

  1. Lower your interest rate: A down payment could reduce your interest rate and save you money over the life of your loan. Subsequently, a lower interest rate will lessen your monthly mortgage payments.
  2. Reduce your VA funding fee: VA-backed loans require first-time home buyers to pay a funding fee between 1.4% and 2.3%. If you’re a second-time homebuyer, your VA funding fee could be up to 3.6% of the loan amount. Providing a downpayment can encourage your lender to reduce your funding fee amount.
  3. Start building home equity from day one: By making a down payment, you’ll start building home equity right off the bat. This can be a worthwhile investment if you’re interested in funding other financial goals through a cash-out refinance or home equity line of credit down in the future.
  4. Stand out in a competitive market: A down payment can let sellers know that you’re a serious buyer, and strengthen your offer. This can be an advantage worth having in a competitive housing market.
  5. Your lender requires it: You may have to offer a down payment if your home’s cost exceeds its appraised value, you didn’t get full entitlement, the home costs more than the conforming limit or you don’t qualify for a large enough loan.

Whether this is your first or subsequent time purchasing a home, your COE will show if you have full or remaining entitlement. Your VA entitlement is the amount the U.S. Department of Veterans Affairs guarantees on your loan, it will also determine if you need to provide a down payment.

Eligible borrowers with full entitlement no longer have to provide a down payment on loans over $144,000. In the case of default, the VA provides a federal guarantee that will reimburse the lender, 25% of the entire loan amount for those with full entitlement.

Borrowers that have less than full entitlement are subject to the conforming loan limits in their county. The VA guarantees 25% of the county loan limit for those with remaining entitlement as long as they purchase within the conforming loan limit for their county. However, if borrowers with less than full entitlement borrow above the county’s loan limit, they must provide a down payment.

4. Consider applying for state loan programs for veterans

In addition to the federal assistance available for eligible veterans to purchase homes, borrowers can apply to special home buying assistance programs in their state. These programs can provide rate discounts, down payment or closing cost assistance.

One example, Florida’s Salute Our Soldiers Military Loan Program, offers qualifying veterans or active military members 30-year fixed rate mortgage loans below market rate. The program includes several down payment assistance options that are available in all 67 counties throughout the state of Florida. These could include up to $10,000 in down payment or closing cost assistance.

Most states and counties provide similar state-run veteran home loan programs to help eligible VA borrowers purchase a home at an affordable rate.

5. Compare lender rates before settling on a VA home loan

A mortgage is one of the most expensive investments you’ll make in your life, as such it’s important to compare VA loan lenders and consider all options in order to get the best deal.

Before you begin shopping for rates, you should know the type of loan and length of term you want. You should also know the loan amount, the rate type (fixed or adjustable) you prefer, and if you are going to offer a down payment.

The next step is to contact several lenders you are considering and request a loan estimate. For a mortgage loan, requesting a pre approval letter from three or more lenders will give you a realistic report on what a lender is willing to loan you based on a thorough credit check and information regarding your finances.

Pre approval letters are generally valid for 30 to 60 days and include information regarding the type of loan, purchase price, qualified interest rate and loan amount you would get.

For a pre approval letter, you’ll need to provide the following information to your loan officer:

  • Your name
  • Your social security number (to be submitted for a credit check)
  • Your income (W-2 or 1099)
  • Proof of employment
  • Tax returns
  • Bank statements or assets
  • Monthly debts (or other court mandated payments, such as alimony or child support)
  • Bankruptcy discharge documents (VA loans are available two years after a Chapter 7 bankruptcy or foreclosure, and one year after filing for a Chapter 13)
  • The address of the property you plan to purchase
  • The property’s sale price
  • The loan amount you want

When shopping for a mortgage, multiple credit inquiries within a 14 to 45-day period will be reported as one single hard credit check on your credit report.

To narrow down your search, make sure to take into consideration upfront costs, origination fees, closing costs, interest rates, loan terms, eligibility requirements, and any products or discounts they may provide.

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Summary of Money’s 5 Tips for Getting the Best VA Loan Rates

VA loans feature lower interest rates and flexible credit requirements when compared to conventional loans. Here are Money’s main takeaways on how to get the best VA loan rate:

  1. Familiarize yourself with the types of VA loans available and their respective eligibility requirements
  2. Your credit score won’t dictate whether or not you’re approved for a VA loan, but a good score could still translate into a more favorable rate. Lowering your DTI and minimizing your debts can also improve your mortgage application.
  3. You can further lower your interest rate and closing expenses by offering a down payment on a VA loan.
  4. There are state programs that provide exclusive rate discounts and closing cost assistance to eligible veterans, military members and surviving spouses.
  5. VA loans are issued by private lenders. Like other home loan programs, it’s best to compare mortgage rates and shop around before settling on a lender.

To learn more about VA loans, check out Money’s 7 tips for getting a VA home loan

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Diamonds Blue Group Completes Transition to New Business Model



DALLAS, TX / ACCESSWIRE / June 17, 2021 / Diamonds Blue Group is pleased to announce that they have finished the transition to a new business model. Formerly a premier advertising agency in the Dallas area focusing on clients in the entertainment industry, they are now known as Diamonds Blue Credit Repair. Their services now focus on their mission to help people get control of their credit through education. After starting the process in January of 2021, they are now fully operational and ready to accept new clients.

Diamonds Blue Group actually began in early 2019, but after the pandemic hit in 2020 the entertainment business became virtually nonexistent. Diamonds Blue had to adapt to the new business climate, and formed a plan to rebrand and relaunch. Instead of closing their doors completely, they found a new purpose in helping people regain control of their finances and credit rating through education and counseling. In addition to information about the company, their revamped website also allows clients 24/7 access to their accounts.

Diamonds Blue CEO and Founder Walter Rickett III is excited about his company’s big step, “We are thrilled to launch a product that provides real value to Americans. Our goal is to help as many people as possible through credit repair and financial education. Our flat rate pricing, lack of long term contracts, and money back guarantee show that we stand behind our service. We look forward to making a huge, positive impact on the financial industry, and the lives of individuals.”


Diamonds Blue’s leadership team has many years’ experience in evaluating credit and guiding consumers to assert their legal rights. Their flat rate pricing model is unique in the industry, with a low initial fee and a low monthly fee. They believe that credit repair firms can’t do anything that you couldn’t do yourself, but they can help you to achieve results in ​ a fraction of the time without making costly errors. For less than the cost of a few hours with an attorney, they help and guide their clients from start to finish and prepare all of the documentation for the various credit agencies. There are NO long binding contracts. They guarantee results or your money back!


Walter Rickett III
EMAIL: [email protected]
PHONE: 888-910-1059

SOURCE: Diamonds Blue Credit Repair

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