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It sits in the borrowers bank account, where its totally accessible. So the lender has no assurance the borrower will keep the money to serve as a safety net (which is the intended purposes of cash reserves). More Prevalent in Wake of Housing Crash.
Cash reserves are nothing new. Theyve been around as long as the lending industry itself. But two things have changed over the last few years. More lenders are requiring them today, and the amounts have gone up in many cases.
If they keep harassing you, contact your bankruptcy attorney. I took out a payday loan yesterday to put money towards a car. And found out with all my credit issues I can't get a car with out a cosigner. I called the payday place and told them I'm filing for bankruptcy due to lots of debt.
30 mins later at 8:30 pm a corporate allied bank personal loan philippines threatens me and says i better not file else I will get in big trouble with the law. I already closed bank accounts and got a new debit card ordered. I am going to file Friday. Now I'm scared because the lady said I'm frauding.
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