Will New Regulation Affect Crowdfunding and P2P Loans?

Before the recession bank managers willingly approved loans and credit, but times have changed and business loans are now far harder to acquire. Fueled by technological innovation and the recession, crowdfunding and P2P loans have seen rapid growth over the past few years. Crowdfunding now encompasses investment in start-ups outside of its initial investment base; the entertainment industry.

Companies such as Kick starter first grew public awareness of modern crowdfunding, it was initially a method to fund music and film ventures that would have otherwise likely remained at the conceptual stage. Allowing people to invest small amounts proved to be a democratic system for funding entertainment projects, granting the public what they desired rather than what a few individuals believed they had desired.

P2P (peer to peer) loans grew out from the concept of crowdfunding. You don’t give away any equity with P2P loans, so it’s more suitable for established businesses seeking a cash injection. Whereas crowdfunding is fantastic for those who have an idea that they want to see evolve into a business.

The US’s Over-Regulation

Crowdfunding is now a concept the majority of businesspeople will be au fait with, and rapid growth has forced governments to try and regulate the practice. However, there are commonly held concerns that people are being deterred from crowdfunding in the US – when compared to the UK. As such the US Government have amended their J.O.B.S. Act (Jumpstart Our Business Startups). It’s believed that over-regulation has stifled growth, although the ‘Equity Crowdfunding Improvement Act of 2014’ is seeking to address this. It’s currently assigned to a congressional committee, who will assess it and then possibly send it onto the House or Senate.

US’s Amended J.O.B.S. Act

Patrick McHenry has long been a champion of crowdfunding, and it was an earlier act he supported that was eventually drafted into the now derided crowdfunding section of the J.O.B.S. act. McHenry has proposed alterations after admitting that the regulations may have been ill-advised, he said "It's a humbling process to find that the law you support won't work in practice". One example of this is the P2P lending market (loan-based crowdfunding), which is thriving in the UK. In the US though you require a registration statement to offer to retail investors – just one example of the currently stifling regulations.

In the UK the FCA acted slightly different, and decided to allow the market to develop before applying too many regulations in the fear that it could lead to over-regulation. With hindsight this was perhaps the correct path, and the US are now looking to follow suit as outlined above.

The UK’s New 10% Rule

In March of this year the UK’s FCA outlined new set of regulations. One of the new rules is the ‘10% rule’, which prevents people from investing more than 10% of their 'net investible assets' into investment-based crowdfunding projects. This is designed to protect investors, as investing in startups is high risk. However, after two investments you’re reclassified as a 'sophisticated investor' and the 10% rule no longer applies. The US have a similar rule, but opted for 5%.

Global Regulations

Countries all over the globe have been forced to accept crowdfunding as a legitimate business method, but they’ve acted in differing ways and this may influence your decision to invest or indeed seek investment. Canada and Italy have fairly robust regulations, similar to the USA, while Sweden and New Zealand have made it a legal form of raising capital which has fuelled growth. India and France are on the verge of introducing new regulations, with South Africa and Nigeria set to follow.

Summary

We’re in a time of change as crowdfunding establishes itself, with new regulations forcing the most experienced businesspeople to rethink their position. Governments are trying to offer protection while making it easier to use crowdfunding, but at this crucial stage it’s a tough task. It’s therefore important to fully research your government’s regulations before utilising crowdfunding for your business needs. It does seem that crowdfunding is here to stay, so be aware of new regulation updates but don’t let them deter you unnecessarily.

ONLINE PERSONAL LOANS REVIEW

Although unsecured personal loans are quick and easy to apply for online, they are some of the most expensive and riskiest loans available. Excessively high annual percentage rates (APRs) make them extremely expensive, and short-term due dates make them a challenge to pay back on time. Each state has different laws and regulations regarding personal loans. Currently only 43 states allow online personal loans or payday loans, so be sure to check your state laws even if a service advertises in your area.

Here’s how these loans work: a lender loans you funds until your next paycheck, at which point a single payment for the principal plus interest and fees is due. Because of their high interest rates and short payback terms, these loans should be the loan type of last resort, after the less expensive and less risky options—as in just about every other legal money source-- have been exhausted. If you're still unsure about whether you should take out a personal loan online, check out some of our latest articles about fast cash loans.

If you feel you must in fact resort to one of these loans, choose the lender with care. As our reviews show, interest rates and other provisions vary widely. In addition, a number of companies that offer these loans have been fined or otherwise disciplined for running afoul of state regulations. We continue to monitor these investigations to ensure that the companies included in our lineup have a clean track record. Some of the best personal loan companies, offering relatively low APR rates and payback terms, and an easy application process are 100 Day Loans, NetCredit and 24/7Loan.

ONLINE PERSONAL LOANS: WHAT TO LOOK FOR

 

 

Cash loans online are not financially beneficial or cheap; they're simply good for quick emergency cash. Because they are easy to get, online personal loans are the best personal loans people with bad credit may be able to secure, especially in a hurry. If you have bad credit and need an overnight loan, look for the following key features in good online loans.

Loan Features 
Depending on your financial need, you may need to look for a company that lends enough to cover your situation, so check the maximum loan amount first. APRs vary wildly: Avoid anything above 600 percent if at all possible! We provide the cost of a 14-day loan for $100 with an APR of 358 percent (an average rate), for some basis for comparison, but once you obtain a specific APR figure from a company, you can use that rate to calculate the cost of your loan. The APRs for the best loans online should be as low as possible. Other considerations include the option to cancel a loan within 24 hours of its deposit to your account, and the required wait time before you can apply for a second loan.

Service Features
There are two types of online loan lenders: loan matching services and lending services. A loan matching service takes your information and matches you with a lender, which will then offer you a loan. Loan matching is best for bad-credit loans, as it gives you a higher likelihood of finding a lender for your situation than simply looking for a loan on your own.

Loan Application Information
Reputable personal loan companies will require you to be at least 18 years old and a U.S. citizen, and have a current source of income (employment, self-employment, Social Security income, disability, etc). You will also need a Social Security number, home address, valid email address, phonenumber and a checking account. Some services will also need a driver license and pay date information, and will have employment duration requirements. Not every loan service will run a formal credit check or disqualify you for having a bankruptcy on your financial history; a bad-credit personal loan is still a possibility from many good companies.

Repayment Terms 
All of the best personal loan services have multiple repayment options to help you pay back your loan. Depending on the service or lender, you'll pay fees for late payments, missed payments, early payments, finder's fees and more. You can also incur fees if you apply for an extension, fees for renewals of your loans, fees for your fees and so on. The length of a loan can vary from two weeks to a few years. It's best to find a happy medium; two weeks to a few months is a safe bet. However, different term lengths are available depending on your situation. The longer the loan’s term, the more important it is to find the lowest possible APR.

Help & Support 
Legitimate loans are backed by legitimate companies. When you're choosing an online loan service, look for phone numbers, email addresses and live chat features so you can contact real people.

Although many companies can lend $1,000 to $10,000 or more, you should be careful and conservative choosing an amount to borrow. Online personal loans are designed for short-term, small expenses, not for purchasing cars or boats. The interest rate on your loan will depend on your state of residence, credit history, loan provider and many other factors. If you stick with one of our top reviewed personal loan services, borrow responsibly and pay the loan back in a timely manner, you won’t go wrong.

 

Vitamin Supplements: Healthy or Hoax?

Can vitamin and mineral supplements really make you healthier?

Overwhelmed by the towering shelves of vitamin and mineral supplements in the grocery store?

There are so many options that sound great, but there are also so many questions: Which ones really work? Exactly how effective are they? Are they worth the money?

These are good questions for anybody who wants to live healthier and avoid heart disease and stroke. But before you start buying everything from Vitamin A to Zinc, remember there’s only one way to be sure you’re getting the vitamins and minerals your body needs: Eat healthy foods. 

Supplements can be beneficial, but the key to vitamin and mineral success is eating a balanced diet. Before taking vitamin and mineral supplements, talk to your physician about your personal dietary plan.

Food first!

“Nutritionists recommend food first because foods provide a variety of vitamins and minerals and also dietary factors that are not found in a vitamin or mineral supplement,”  said Penny Kris-Etherton, Ph.D., R.D., and Distinguished Professor of Nutrition at the Pennsylvania State University’s College of Health and Human Development.

For example, she points out that foods provide many bioactive compounds and dietary fiber that typically aren’t found in supplements. And some supplements don’t allow for full absorption of vitamins. 

“If taken on an empty stomach without any food, some of the fat-soluble vitamins will not be absorbed as well as they would if the supplement was consumed with a food that provides fat,” said Kris-Etherton, who also is a volunteer with the American Heart Association.

Supplements May Help

While diet is the key to getting the best vitamins and minerals, supplements can help. For instance, if you’re doing your best to eat healthy foods but still are deficient in some areas, supplements can help. The key is to ensure they’re taken in addition to healthy diet choices and nutrient-dense foods. They’re supplements, not replacements. Only use supplements if your healthcare professional has recommended them.

“A supplement will generally provide 100 percent of the daily recommended allowance for all vitamins and minerals,” Kris-Etherton said. “Therefore, many nutritionists will agree that a supplement is OK if nutrient needs are not being met by a healthy food-based diet.”

Do What’s Best for You

As said earlier, before taking vitamin and mineral supplements, talk to your physician about your personal dietary plan. Also, consider these recommended “do’s and don'ts” from the American Heart Association:

Do this:

• Eat a healthy diet. There’s just no substitute for a balanced, nutritious diet that limits excess calories, saturated fat, trans fat, sodium and dietary cholesterol. This approach has been shown to reduce coronary heart disease risk in healthy people and those with heart disease.
• Patients with heart disease should consume about 1 gram of omega-3 fatty acids called EPA + DHA. This should ideally come from fish. This can be hard to get by diet alone, so a supplement could be needed. As always, consult with a physician first.
• If you have elevated triglycerides, try to get 2 to 4 grams per day of EPA+DHA.

Don’t do this:

• Don’t take antioxidant vitamin supplements such as A, C and E. Scientific evidence does not suggest these can eliminate the need to reduce blood pressure, lower blood cholesterol or stop smoking.
• Do not rely only on supplements. There isn’t sufficient data to suggest that healthy people benefit by taking certain vitamin or mineral supplements in excess of the daily recommended allowance. Some observational studies have suggested that using these can lower rates of cardiovascular disease and/or lower risk factor levels. However, it’s unclear in these studies whether supplements caused these improvements.

National Check Fraud Center

Credit Card Fraud
Prevention Techniques and Information

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A credit card may be bad if:

• The individual offers the credit card but no other identification.
• The name on the credit card is different from the name on other identification.
• The card is unsigned.
• The signature of the individual appears different than the signature on the card.
• The expiration date has passed.

10 Ways to Protect Your Credit Cards:

You may think these ten rules are unnecessary. But if you ignore them, you make it easy for the wrong people to use your cards

1. Never leave your cards unattended at work. There are more credit card thefts in the workplace than in any other single location.
2. If your credit card is programmed to access an Automated Banking Machine (ABM), protect your Personal Identification Number (PIN) or security code. Don't write it down, memorize it.
3. Don't leave your credit cars in your vehicle. A very high proportion of credit cards are stolen from motor vehicles.
4. Always check your card when returned to you after a purchase. Make sure it is your card.
5. When traveling, carry your cards with you or make sure they are in a secure location.
6. Report lost or stolen cards immediately. Most fraudulent use of cards takes place within days of their being lost or stolen.
7. Sign the back of a new card as soon you get it. Destroy unwanted cards so no one else can use them.
8. Make a list of all your cards and their numbers. This key information is helpful when reporting lost or stolen cards.
9. Always check your monthly statement. Make sure the charges are yours. Report them to your card company if the entry is not yours.
10. Never give your card number over the phone unless you are dealing with a reputable company. The only time you should give it is when you have called to place an order.

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Fraud Identification for Visa and Mastercard Cards

COMBAT CARD FRAUD Visa ® and MasterCard ® cards are designed with special security features to deter counterfeiting and fraud. A fraudulent transaction could involve an invalid account number or a valid number with unauthorized use.
One of the main causes of fraud losses is unauthorized use of a lost or stolen card. Fraudulent activity normally occurs within hours of the loss or theft -- before most victims have called to report the loss.
This is why it is so important to compare the signature on the card and the sales draft. If they don't match, you may be able to stop a fraudulent transaction even if the authorization center has not yet been told to pick up the card. Keep in mind that the thief may have altered the signature panel or re-embossed the card to change the account number.
Watch for suspicious behavior! While any of the following can occur in a perfectly legitimate transaction, these characteristics are frequently present during fraudulent transactions. Be alert for the customer who:

1. Takes the card from a pocket instead of a wallet.
2. Purchases an unusual amount of expensive items.
3. Makes random purchases, selecting items with little regard to size, quality, or value.
4. Makes several small purchases to stay under the floor limit, or asks what the floor limit is.
5. Signs the sales draft slowly or awkwardly.
6. Charges expensive items on a newly valid credit card.
7. Cannot provide a photo identification when asked.
8. Hurries you at quitting time.
9. Purchases a large item, such as a television console, and insists on taking it at the time, even when delivery is included in the price.

Call for a Code 10 authorization:
Call your authorization center immediately and ask for a "Code 10" if:

1. You believe you have a counterfeit or altered card.
2. The transaction is suspicious.
3. The account number is listed on the warning bulletin.
4. The signatures don't match.
5. You become suspicious for any other reason.

You will be asked a series of "yes" or "no" questions. Hold the card while the operator gives you instructions. You should always conform to your store policy.

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Always check the security features:

• Embossing
• Magnetic stripe
• Signature panel
• Hologram

Check the card's embossing:

• The first four digits of the Visa account number (the bank identification number [BIN] must be pre-printed above the embossed number. If these numbers do not match exactly, the card has been altered or is counterfeit.
• Visa's embossed account numbers begin with a 4 and contain either 13 or 16 digits.
• A unique embossed "V" appears in "CV," "BV," or "PV" on Visa Classic, Business, or Gold cards.
  
  
  • The embossed characters should be in alignment and of the same size, height and style.
  • If you see "ghost images" of other numbers behind the embossing on either the front or back of the card, it has been re-embossed.
  • If the card has been re-embossed, the hologram my be damaged.
  • Check the valid dates for evidence of tampering. Do not accept an expired card.
• MasterCard's embossed account numbers begin with a 5 and contain 16 digits.
• If the unique security character "MC" appears next to the expiration date of a Mastercard card, make sure the card account number is indent-printed in reverse italics on the signature panel (this feature will not appear on all cards until 1997).

Check the signature panel:

• A repetitive, color design of either the "Visa" or "MasterCard" name should appear on all signature panels.
• An altered signature panel may be discolored, glued, painted, erased, or covered with white tape.
• Compare the signature on the card with the signature on the sales draft. If they are different, request photo identification, such as a driver's license. If you are still not satisfied that the customer is the legitimate cardholder, call for a Code 10.
• he signature panel on MasterCard cards may include an indent-printed account number followed by a three-digit validation code.

Check for hologram tampering:

• The gold or silver holograms should show clear, three-dimensional images that appear to move when the card is tilted. Imitations can often be easily damaged by scratching. 
• Credit card fraud

Article credit given to Canadian Bankers Association