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) Mortgage company says allegations are unfair and wrong
OMAHA — An Omaha-based mortgage company plans to fight state allegations of misconduct and will try to keep its state mortgage banking license.Bob Goldberg, president of Advantage Mortgage Service Inc., said the company conducts its business "in an exemplary fashion."On its Web site, Advantage Mortgage says it offers loans "for home purchases, refinancing, home equity allocation, debt consolidation and much more." . More>> - (
) Boss defends home loan 'formula'
Rudco CEO Rudi Visagie believes his "simple" business formula is a winner for consumers and has big banks and financial services brokers running scared. The National Credit Act regulates maximum interest rates and initiation fees, but no minimums, Visagie said in defence of his six percent interest rate on home loans. Visagie said Rudco was complying with the act by offering a maximum initiation fee of R150, plus 10 percent of the agreement in excess of R1 000, but limited to R1 140 (including VAT). A further proviso of the act is that the initiation fee may not exceed 15 percent of the principal debt. Rudco's "management fee" of R750 had been converted to an interest rate of 17 percent, said Visagie. Before June 1, when the act came into force, this was how Rudco calculated a R100 000 "debt consolidation" - what the act refers to as a personal loan: Capital outlay of R100 000 (this was used to repay people's debts, Visagie stressed, and no money was paid directly to clients); 20-year (240 month) repayment period; R750 management fee. More>> - (
) 5 Mississippi video stores to close rental competition
Five Mississippi video stores will close as part of Movie Gallery Inc.'s efforts to pay off creditors. The nation's second-largest rental store outlet, based in Dothan, Ala., will close two Hollywood Video stores in Jackson and a Movie Gallery in Clinton. Around the state, the company is also closing stores in Louisville and Tunica. "I used to shop at the Movie Gallery when it first opened," said Robert Gatewood of Clinton, who works at the AT&T store next door. "I usually forgot to take it back and paid for it in late fees," Gatewood said. "It's cheaper for me to buy them at Wal-Mart." A company spokesman said stores were in the midst of liquidation sales and no time is scheduled for the stores to close. The metro area will have about six stores remaining in the metro area after the consolidation. More>>