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White House backs deal to hold down student loan rates

WASHINGTON (Reuters) - President Barack Obama supports compromise legislation holding down interest rates on student loans and was involved in Senate negotiations, a senior administration official said on Thursday. U.S. senators reached a deal on Wednesday to temporarily hold interest rates on student loans at lower levels, as they raced to get the measure completed before an August deadline, a Senate aide said. (Reporting by Mark Felsenthal; Editing by Vicki Allen and Philip Barbara)

Sharp drop in reserves to cover bad loans helps lift Capital One Financial's 2Q net income

LOS ANGELES, Calif. - Capital One Financial Corp. said Thursday that its second-quarter profit vaulted versus the same period last year, when the lender set aside $1.7 billion to cover bad loans. The company benefited from higher revenue from its credit card and commercial banking businesses, and ended the April-June period with higher loan balances at its auto lending division. But retail banking and home loans declined.

Senate to consider Democratic plan extending student loan rates, previous attempt failed

WASHINGTON - The Senate is trying again on student loans. Senate Majority Leader Harry Reid on Monday scheduled a procedural vote for Wednesday on a bill restoring the interest rate on subsidized Stafford loans to 3.4 per cent for one year. Interest rates doubled to 6.8 per cent last week because Congress didn't avert a rate hike built into the law. House Republicans have passed a bill that would link rates to the financial markets and keep rates low in coming years. Rates would increase if the economy improves.

Moody's warns South Africa on 'unsecured' lenders

Moody's rating agency on Monday warned South African banks and other lenders which issue loans without collateral face a bumpy time ahead as the economy wobbles and labour unrest continues. Moody's warned that unsecured lenders -- which are dominant in mining communities -- would be particularly badly hit over the next 12-18 months. "We expect higher delinquencies from employees in the gold and platinum mining sector, and the agricultural sector, which have been hardest hit by labour unrest and strikes," Moody's said in a statement.

Money lenders to scrap joint surety from July

SEOUL, June 28 (Yonhap) -- Big money lenders are scrapping a joint liability system from next month, financial sources said Friday, to fall in line with the regulator's efforts to reform the outdated lending practice and prevent a chain of defaults. Five major money lenders, including A

Britain to probe high-interest loans industry

British regulators are to crack down on businesses which make immediate short-term loans at high interest rates, saying on Thursday that some of the methods used cripple people in difficulty. The Office of Fair Trading said it was referring so-called payday lending to the country's competition watchdog, citing "deep-rooted" problems. The OFT said the decision followed a review "prompted in part by concerns that some payday lenders are taking advantage of people in financial difficulty".

Cash Store says Province of Ontario moving to take legal against it

EDMONTON - The Cash Store Financial Services Inc. (TSX:CFS) says the Ontario government has as filed an application to start legal proceedings against the company. The legal action relates to the company's basic line of credit product offering introduced in February to replace its payday loans. The company has an application for judicial review seeking a declaration that certain provisions of the regulations made under the Ontario Payday Loans Act are void and unenforceable. It is scheduled to be heard Oct. 2.

Brazil offers low-cost consumer loans for the poor

Brasilia, Jun 12 (EFE).- Brazilian President Dilma Rousseff unveiled a plan Wednesday to provide 17 billion reais ($8.5 billion) worth of low-cost consumer loans to beneficiaries of a housing program, enabling them to purchase appliances and furniture. The program is aimed at "providing more dignity" to the poorest families, who will "have access to goods that all consumers want" via loans with payment terms unavailable on the market, she said. Rousseff used her speech to stress that the fight against inflation remains one of her administration's top economic priorities.

Debt burden drives Indian family to suicide

Four members of an Indian family mired in debt and under pressure from local money lenders to repay loans committed suicide in the western state of Gujarat, police said Monday. A married couple and three of their children consumed poison on Sunday at their home in Bavla town, 25 kilometres (15 miles) from Gujarat's main city and commercial hub Ahmedabad. "A woman and three children died immediately and the man was rushed to the hospital. He is still undergoing treatment," police officer A.Y. Bhaloch told AFP.

UK government may sell $62 billion student loan book: report

LONDON (Reuters) - Britain's government is considering whether to sell its 40 billion pound ($62 billion) student loan book as part of a series of privatizations that includes selling off the Royal Mail Group <GBPO.UL>, the Sunday Times newspaper said. The government is testing the market with the sale of a 900 million pound tranche of loans, which was announced by Business Secretary Vince Cable on March 26. The newspaper said that the government was now looking at wholesale privatization.
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