Latest news with #financialimpact
Bloomberg
4 days ago
- Business
- Bloomberg
Gap CEO on Retail Pain
Open Interest Gap is predicting a tariff impact of as much as $300 million, and revealed stubborn weakness at two of its smaller brands, Banana Republic and Athleta. The company's CEO Richard Dickson joined Bloomberg Open Interest to talk about the weak quarter. (Source: Bloomberg)
Yahoo
25-05-2025
- Business
- Yahoo
After A 4-Year Pause, Student Loans Are Destroying Credit Scores — One Borrower Says It Cost Her 137 Points In Weeks
After a nearly four-year break, federal student loan payments have resumed — and for millions of Americans, the financial aftermath has been swift and painful. Borrowers are now facing steep drops in their credit scores, with some seeing declines of more than 100 points in just a matter of weeks. Student loan payments officially resumed in October 2023, but thanks to a one-year "on-ramp" period, missed payments weren't reported to credit bureaus right away. That protection ended in October, and now borrowers who've fallen behind are starting to feel the full impact. Don't Miss: Hasbro, MGM, and Skechers trust this AI marketing firm — Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – In the first quarter of 2025, 2.2 million federal student loan borrowers became newly delinquent and saw their credit scores fall by more than 100 points, according to the Federal Reserve Bank of New York. More than 1 million of those borrowers saw drops of at least 150 points. A 100-point drop in a credit score can be extremely damaging. According to LendingTree's chief credit analyst Matt Schulz, recovering from such a hit could take years. "It can literally cost you tens of thousands of dollars over the course of your life in the form of higher interest rates, bigger fees and more," Schulz told Fox News. Kayla Quinones, a 26-year-old borrower from Florida, saw her credit score drop 137 points between January and March — and she didn't even realize she was behind on her payments. Quinones told CNBC that although she received emails from the U.S. Department of Education, she thought they were general updates, not action items. It wasn't until she checked her credit score while preparing to move that she discovered the drop. "I went back into [my loan servicer] website, took a peek, and was just kind of figuring out what is going on," she said. Trending: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — Quinones used her savings to pay off the overdue amount and worked with her servicer to set up a payment plan. But the damage to her credit had already been done. For borrowers like Mervelline Aflata of Dallas, falling behind wasn't just about confusion — it was about survival. Aflata earned her master's degree in 2023 and planned to resume payments in early 2025. But after undergoing surgery and losing her job, she wasn't in a position to pay. By the time she started working again and attempted to make a payment, her credit score had already dropped 154 points. "Maybe I could have looked into more options with the loan servicer, but in that moment, I was just worried about living," she told CNBC. Aflata eventually worked with her servicer to bring her account current and filed a dispute with TransUnion. Within a week, the missed payments were removed from her report and her score rebounded — a relief, since she hopes to buy a home some borrowers have been able to bounce back, others may face a long road to recovery. Schulz told Fox News that rebuilding a credit score after a major hit is "a marathon rather than a sprint." Still, there are steps borrowers can take: Check credit reports for errors. Request goodwill removals of missed payments from servicers. Become an authorized user on someone else's credit card. Ask for higher credit limits, but avoid using the new credit. Above all, making consistent, on-time payments is key. The end of the pandemic-era student loan pause has created confusion and financial stress for many. Whether due to a misunderstanding or tough circumstances, falling behind on student loans now has real consequences. Credit damage from student loan delinquency doesn't just affect borrowing; it can influence housing, insurance rates, and job opportunities. Checking in early and often with loan servicers may help avoid surprises down the road. Read Next: Maximize saving for your retirement and cut down on taxes: . 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. Image: Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article After A 4-Year Pause, Student Loans Are Destroying Credit Scores — One Borrower Says It Cost Her 137 Points In Weeks originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
24-05-2025
- Business
- Yahoo
My bank closed my account. What can I do about it?
Banks have the right to close accounts for various reasons, including inactivity, low balance or suspicious activity. Prompt action and communication with the bank are crucial if an account is unexpectedly closed. The unexpected closure of a bank account can have a significant financial impact, making it important to take preventative measures. Most of us rely on our bank accounts for managing our finances, paying bills and receiving a paycheck. So, when a bank closes an account unexpectedly — whether it's a checking or savings account — it can be both inconvenient and worrying. If you've experienced this, you're probably wondering why this happened to you and what you can do about it. Here are some of the reasons a bank may close your account, what you can do next and how to avoid future bank account closures. It's important to understand that banks have the right to close accounts based on their discretion and internal policies. There are several reasons a bank might decide to close your account: Inactivity or low activity over an extended period of time. Having a zero or negative balance or suspicion of fraudulent activity. Excessive bounced checks or overdraft fees. Flagged for suspicious activities or violating the account's policies. When a bank closes your account, several things can happen: You'll receive any remaining balance: The bank typically mails you a check for the money left in your account. It may be reported to ChexSystems: If the closure was due to suspected fraud or unpaid fees, it could affect your ability to open accounts elsewhere. Automatic payments and deposits stop: Any scheduled transactions will fail, which could cause late fees or missed income. If you find your bank account suddenly closed, it's essential to take prompt action. Here's what you can do: Contact the bank immediately: As soon as you become aware of the account closure, reach out to your bank. Ask them for the specific reasons for the closure and inquire about the procedure to collect any remaining funds. Stop direct deposits and automatic withdrawals: To avoid bouncing checks or missing bill payments, reroute your direct deposits to another account. Also, cancel any automatic payments linked to the closed account. Settle any outstanding balances: If your account was closed due to a negative balance, find out how to settle the amount. Clearing this debt is crucial to prevent it from being sent to a collection agency, which could harm your credit score. File a complaint if necessary: You can submit a complaint to the federal Office of the Comptroller's Customer Assistance Group if you believe your account was wrongly closed. Explore other banking options: Start looking for new banking options. If you're having difficulty opening a new account due to your banking history, consider second-chance bank accounts designed for customers with past banking issues. Monitor your accounts regularly: To avoid similar situations in the future, keep a close eye on your account activity. Set up alerts for low balances or unusual transactions and regularly review your bank statements for any errors. Keep documentation of all your interactions with the bank regarding the account closure. This includes notes from phone conversations and copies of written notices. Prevention is the best option when it comes to avoiding bank account closures. Here are some proactive steps you can take: Handle checks with caution: To prevent check fraud, be careful with how you handle checks. If you need to mail checks, take them directly to the post office. Avoid accepting checks from people you don't know. Stay in communication with your bank: Respond promptly to any communications from your bank. If you plan to make any significant financial changes, such as a large deposit or lifestyle shift, inform your bank ahead of time. Sign up for alerts and notifications: Enroll in your bank's notification services. These alerts can help you monitor your account balance and transactions, helping you avoid falling below minimum balance requirements. Maintain account activity: Regular account activity demonstrates to the bank that your account is not a risk. Avoid keeping your account at a zero or negative balance and ensure you use your account regularly. Avoid high-risk transactions: If possible, avoid transactions or business activities that banks might consider high-risk, such as online gambling or certain types of sales. By implementing these measures, you can significantly reduce the risk of an unexpected bank account closure. Remember, the key to a healthy banking relationship is communication, responsible usage and understanding your bank's policies. If you're in the position to open a new account, read Bankrate's guide How to open a bank account. If you prefer doing your banking from your computer or smartphone, check out Bankrate's primer How to open a bank account online. Does a bank need to alert you to a closed account? While banks can close your account without prior notice, they typically will notify you after the fact to explain the closure and guide you on how to retrieve any remaining funds. It's crucial to reach out to your bank promptly if your account is closed to understand why and secure your balance. What happens to the money in a bank account if closed? If your bank account is closed with a balance remaining, the bank will issue a refund, typically by mailing you a check. If the account is closed due to suspected criminal activity, the bank has the right to freeze your assets. What happens when my bank account is locked? If your bank account is locked, you can still view your account and make deposits, but withdrawals and transfers are blocked. Autopay bills will also fail, as previously authorized transactions are stopped. The unexpected closure of a bank account can be both inconvenient and worrying, but there are steps you can take to prevent it from happening. By staying informed, communicating with your bank and being responsible with your account, you can avoid the potential financial impact and maintain a healthy banking relationship. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Japan Times
15-05-2025
- Business
- Japan Times
Sumitomo Mitsui braces for tariff fallout with more buffers
Sumitomo Mitsui Financial Group is shoring its buffers to prepare for U.S. President Donald Trump's trade war, even as it forecast another year of record profit. Japan's second-largest lender expects net income to climb about 10% to ¥1.3 trillion ($8.8 billion) in the year that started in April, it said on Wednesday. That is slightly less than the ¥1.37 trillion average estimate of analysts as the company said the U.S. tariff measures may have a ¥100 billion impact on profit. Tokyo-based Sumitomo Mitsui is the first of Japan's biggest banks to give profit guidance as earnings drivers come under strain from Trump's tariffs. Lending income has benefited from the Bank of Japan's interest-rate hikes — a campaign that is now in doubt as recession fears mount. Net income for the fourth quarter tumbled 75% to ¥42 billion as the bank booked losses on bonds and securities trading and set aside ¥90 billion in "forward-looking provisions' for "recession risks initiated by U.S. tariffs' and high interest rates, Sumitomo Mitsui said in a presentation. It still beat its ¥1.16 trillion profit goal for the year, posting a record ¥1.18 trillion. The bank's clients are becoming cautious about making deals and investments, CEO Toru Nakashima said at a briefing in Tokyo. Companies in the U.S. have paused mergers and equity underwriting transactions, he added. For Sumitomo Mitsui, too, Nakashima said now is not the time to aggressively pursue more acquisitions. His hesitation comes after a flurry of dealmaking to expand globally. The company's main banking unit last week agreed to buy a 20% stake in India's Yes Bank for about 135 billion rupees ($1.6 billion), as it seeks opportunities in faster-growing markets. It also clinched a deal to expand in private credit in the U.S. Sumitomo Mitsui unveiled plans to buy back up to 1% of its shares for as much as ¥100 billion and cancel them. It will consider further repurchases this fiscal year, depending on performance and capital conditions. Bank stocks are among the worst performers in Japan since Trump announced his so-called reciprocal tariffs on April 2. Shares of Sumitomo Mitsui have slid about 12% from an 18-year high in March. The Bank of Japan earlier this month slashed its growth forecasts, citing "extremely high' uncertainties. Japan's economy probably shrank in the first quarter, even before the tariffs started hitting the country in earnest. Sumitomo Mitsui said bad-loan costs are likely to reach ¥300 billion this fiscal year, down from ¥344.5 billion in the previous year.
Argaam
14-05-2025
- Business
- Argaam
Saudi Cable receives SAR 15.3M dividend from Midal Cables
Saudi Cable Co. (SCC) received a Q1 2025 dividend of SAR 15.3 million from its associate, Midal Cables Co., on May 13, the company said in a statement on Tadawul. The board of Midal Cables approved, on May 8, a dividend payout for Q1 2025. The dividend will support SCC's working capital and raise its manufacturing capacity utilization. The dividend is projected to have a positive financial impact as of Q2 2025, the statement said.
