Texas secures $15.7 million settlement against insurance firms

Texas Attorney General Greg Abbott has reached a settlement with two auto credit insurance companies his office claims did not provide required refunds to policyholders who had paid off their car loans in advance.

Under the terms of the settlement, more than 46,000 Texas vehicle owners who bought credit insurance from Service Life and Casualty Insurance Co. in Austin will receive refunds totaling $14.4 million from the company.

In addition, another 6,500 vehicle owners will receive $1.3 million in refunds from Old United Life Insurance Cos. in Mission, Kan.

Officials with Service Life and Old United could not immediately be reached for comment on the settlement.

The refunds apply to vehicle owners whose loans terminated between 2002 and 2006.

These policies were sold to cover vehicle payments in the event the borrower died or became disabled.

According to the Attorney General's Office, the companies' customers bought single-premium policies that were paid in a lump sum, usually when the customers bought the vehicles. The full cost of the credit insurance was then bundled into the buyer's vehicle loan, which in some cases was as long as six years.

Under state law, Service Life and Old United were obligated to refund unearned portions of the insurance premiums to those customers who paid off their loans ahead of schedule. However, the state claimed the companies never refunded the unearned portion.

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Debt consolidation for saving money

Riding on their strong economic condition the modern day youth often ignore the necessity to save money. The increase in the real income of young adults has therefore led to a dangerous trend, which often leads to an increase in debt burdens on youth. Therefore, it makes sense to adopt several money saving techniques to avoid such untoward situations.

In case you are facing a similar situation as described above do not panic. Instead, simply adopt debt consolidation techniques to save your hard-earned money. You can easily augment your savings by taking the debt consolidation loans. You can take the help of some web browsing tools in order to find the appropriate debt consolidation program.

The debt consolidation loan will help you to get rid of all niggling financial worries in no time at all. To get the best debt consolidation loan rate all you need to do is go through the websites containing different quotes from lenders only to find out which one suits your interest best.

Make sure that the lender you are dealing with discloses all the information regarding fees, charges incurred and other associated costs. By acting with a little bit of precision you can easily consolidate your debts and save thousands of dollars in no time at all. It is also very important to select the right debt consolidation rate. The apparent nominal differences in rate can actually help you to save a lot of money. A recent media report, which reflected how debt consolidation loans helped people to save a lot of money in no time at all, bears testimony to the fact.

For people who have the habit of overspending debt consolidation settlement program is the best bet. Debt consolidation loans are the safest way of getting rid of your financial woes when you are in a state of bankruptcy. Incase you are not being able to decide about what suits you best go for credit counselling. Debt consolidation programmes claims a much lower rate of interest than other relief programs. There are also numerous debt brokers present who help to negotiate the total debt balance on behalf of the consumers.

A very popular mode to obtain debt relief is to post a collateral, which may be a home or a vehicle to lower the lender's risk. This will automatically lower the rate of interest and in the process help to relief debt at a much faster pace.

Debt consolidation can easily turn out to be an effective money saving technique for the young generation. However, when opting for debt consolidation loans pick the secured ones, which offer a much lower rate of interest than the unsecured ones.

So, if you are facing a credit crunch opt for debt consolidation loans to save some your money and restore your financial prowess in no time at all. But as a safety measure before obtaining the loan make it a point to properly calculate the debt and interest amounts so that you can land up with the best deal possible.

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Garware Polyester accepts IDBI settlement package

CHENNAI: Garware Polyester Ltd has informed the BSE that the board of directors of the company has approved the one-time settlement (OTS) package offered by IDBI vide a circular resolution dated September 28.

The package was sanctioned by IDBI vide its letter dated March 15. Subsequently, IDBI modified the said package vide letter dated August 2.

The main package entails cash payment of Rs 84.24 crore toward principal outstanding of NCDs, corporate loan, zero coupon bonds and negotiated settlement amount (Rs 83.24 crore) and deferred interest (Rs 1 crore) and conversion of Rs 6 crore out of defer red interest into equity as per SEBI guidelines.

It also stipulates conversion of remaining Rs 49.54 crore of deferred interest on NCDs/corporate loan into 0.01 per cent cumulative redeemable preference shares, which would be redeemable in three equal annual instalments between April 1, 2014 and April 1, 2016.

The package provides for waiver of Rs 27.95 lakh payable towards further interest and other charges (liquidated damages).

The board has also approved a plan to increase the authorised share capital of the company and make a preferential issue to IDBI. - Our Bureau

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