Thursday, February 19, 2009

Payday Advance Loans Stores, Swiss Banks May Be Targets

Payday loans stores targeted by policies

Payday advance loans stores have worried for some time that new policies would run them out of business. In some states, legislators have come pretty close to doing just that.

Now, Swiss banks owned by UBS are worried that new policies could drive them out of business, too.

Does no more secrets mean no more business?

Yesterday UBS agreed to comply with orders from U.S. officials and turn over banking records of United States taxpayers who had accounts with their Swiss banks.

Many are concerned that this will “open the floodgates” to other countries requesting that USB break confidentiality agreements. People worry that if UBS and other organizations change its practices, they will lose business. Payday advance loans stores also pledge to protect customers’ privacy, but that is only to protect their personal information, not to avoid taxes.

Predictions coming true

Since UBS agreed to pass along client information to the United States’ government in order to avoid criminal charges, some other countries have already started to push for a change in Switzerland’s policies.

Countries such as neighboring Germany are pressing Switzerland to amend banking secrecy laws that  they say promote tax evasion.

German Finance Minister Peer Steinbrueck said last year the Swiss should be put on a "blacklist" of uncooperative tax havens. ... click here to read the rest of the article titled "Payday Advance Loans Stores, Swiss Banks May Be Targets"

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