Payday and Title Loan Requirements

October 18th, 2016

Typical Criteria Required to Apply for a Payday Loan, Installment Loan, or Car Title Loan

This is a list of fairly typical requirements of consumers to qualify for a loan. These criteria are dependent on the state the borrower resides in, the status of the lender [startup, seasoned…]…

Payday Loan/Installment Loan:

  • Valid ID/DL
  • Proof of Income
  • Debit Card {No temp cards}
  • Completed Loan Application
  • Pass credit reporting agency filters
  • Military Exemption
  • Reside in state having enabling payday loan legislation
  • References 3

Title Loan:

  • Valid ID/DL
  • Titled Vehicle
  • Title – Lien Free {Co-signors?}
  • Valuation – 50% Rough Value/Salvaged 20% Rough Value
  • Proof of Residency – Utility Bill/Lease/Mortgage Statement
  • Proof of last payroll amount
  • Completed Loan Application
  • Completed Vehicle Evaluation Sheet
  • Military Exemption
  • Cell phone statement {make copy}

Click this link to get the “Bible” on “How to Start a Payday Loan or Title Loan Company.”

How-Start-Car-Title-Pawn-Business

Payday Loan Franchise?

Bedford Texas City Ordinance: Payday Loan Stores

October 16th, 2016

 

A Typical Texas Payday Loan City Ordinace

ORDINANCE NO. 16-3183

AN ORDINANCE OF THE CITY OF BEDFORD, TEXAS SETTING FORTH REGISTRATION

REQUIRMENTS AND CREDIT EXTENSION GUIDELINES FOR CREDIT ACCESS BUSINESSES;

CONTAINING A SAVINGS CLAUSE; PROVIDING A PENALTY CLAUSE; AND PROVIDING AN

EFFECTIVE DATE.

WHEREAS, the City of Bedford, Texas is a home rule city acting under its Charter adopted by the

electorate pursuant to Article XI, Section 5 of the Texas Constitution and Chapter 9 of the Local

Government Code; and,

WHEREAS, the City of Bedford, Texas contains credit access businesses, which provide payday

loans and advances to consumers who work and reside within the City; and,

WHEREAS, the City Council of the City of Bedford has determined that certain credit access

businesses engage in abusive and predatory lending practices, offering easy money to those

members of our community who are in a tight spot with onerous terms and fees; and,

WHEREAS, the practices of certain credit access businesses cause members of our community to

become trapped in a cycle of short term, high interest loans resulting in large debt and huge

payments; and,

WHEREAS, the Pew Charitable Trusts, in their publication entitled Payday Lending in America: Who

Borrows, Where they Borrow, and Why, (July 2012), wrote that “payday loans are sold as two-week

credit products that provide fast cash, but borrowers are actually indebted for an average of five

months per year.” The report further noted that “on average, a borrower takes out eight loans of $375

each per year and spends $520 on interest;” and,

WHEREAS, the Pew Charitable Trusts, in their publication entitled Payday Lending in America: Who

Borrows, Where they Borrow, and Why, (July 2012), also noted: “How much borrowers spend on

loans depends heavily on the fees permitted by their state. The same $500 storefront loan would

generally cost about $55 in Florida, $75 in Nebraska, $87.50 in Alabama, and $100 in Texas, even if it

were provided by the same national company in all those states. Previous research has found that

lenders tend to charge the maximum permitted in a state;” and,

WHEREAS, the Pew Charitable Trusts, in their publication entitled Payday Lending in America: Who

Borrows, Where they Borrow, and Why, (July 2012), also stated that “the vast majority of borrowers

use the loans on a long-term basis, not temporary one. Thus it seems that the payday loan industry

is selling a product few people use as designed and that imposes debt that is consistently more costly

and longer lasting than advertised;” and,

WHEREAS, the Community Financial Services Association of America (CFSA), the national trade

association for companies that offer small dollar, short-term loans or payday advances includes the

following in the “Member Best Practices” as listed on its Internet site (http://cfsaa.com/cfsa-memberbest-practices.aspx):

“Members shall not allow customers to rollover a payday advance (the

extension of an outstanding advance by payment of only a fee) unless expressly authorized by state

law, but in such cases where authorized will limit rollovers to four or the state limit, whichever is

less.” The need for consumer understanding was also outlined on this website: “A contract between

a member and the customer must fully outline the terms of the payday advance transaction. Members

agree to disclose the cost of the service fee both as a dollar amount and as an annual percentage rate

(“APR”);” and,

WHEREAS, the Center for Responsible Lending, a non-profit, non-partisan organization, states on its

internet site (http://www.responsiblelending.org/other-consumer-loans /tools-resources/fastfacts.html)

that: “car title loans are based on the value of a borrower’s car – the ability to repay the

loans is not factor in the lending decision…”; “loan rates for a car title are typically 20-30 times that

of rates charged by credit card issuers…”; “the average car title customer renews their loan 8

ORDINANCE NO. 16-3183

times…”; and, “on a $500 title loan, this average customer will pay back $650 in interest over eight

months; the principal borrowed will be in addition;” and,

WHEREAS, lenders hold onto the motor vehicle title and when borrowers cannot continue to pay the

fees, they can lose their vehicles, which can drastically affect the borrower’s means of transportation

for work and other essential household functions; and,

WHEREAS, the City Council of the City of Bedford, Texas hereby finds and determines that the

regulation of credit access businesses as set forth herein is in the best interest of the public and is

in furtherance of the public health, safety, morals, and general welfare.

NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BEDFORD:

SECTION 1. That all matters stated in the preamble are hereby found to be true and correct and are

incorporated herein by reference as if copied in their entirety.

SECTION 2. That Chapter 26, “Businesses” of the Code of Ordinances of the City of Bedford, Texas is

hereby amended by adding Article IV. “CREDIT ACCESS BUSINESSES” to read as follows:

Sec. 26-121. – Short title and purpose.

(a) This article may be known and cited as “Credit Access Businesses Regulation.”

(b) The purpose of this article is to protect the welfare of the citizens of the City of Bedford by

monitoring credit access businesses in an effort to reduce abusive and predatory lending

practices. To this end, this article establishes a registration program for credit access businesses,

imposes restrictions on extensions of consumer credit made by credit access businesses, and

imposes recordkeeping requirements on credit access businesses.

Sec. 26-122. – Definitions.

As used in this article:

(1) Certificate of registration means a certificate of registration issued by the director under this

article to the owner or operator of a credit access business.

(2) Consumer means an individual who is solicited to purchase or who purchases the services

of a credit access business.

(3) Consumer’s language of preference is the language the consumer understands best.

(4) Credit access business has the meaning given that term in Section 393.601 of the Texas

Finance Code, or successor section.

(5) Deferred presentment transaction has the meaning given that term in Section 393.601 of the

Texas Finance Code, or successor section.

(6) Director means the City Manager or the person designated by the City Manager directed to

enforce and administer this article.

(7) Extension of consumer credit has the meaning given that term in Section 393.001 of the Texas

Finance Code, or successor section.

(8) Motor vehicle title loan has the meaning given that term in Section 393.601 of the Texas

Finance Code, or successor section.

ORDINANCE NO. 16-3183

(9) Person means any individual, corporation, organization, partnership, association, financial

institution, or any other legal entity.

(10) Registrant means a person issued a certificate of registration for a credit access business

under this article and includes all owners and operators of the credit access business

identified in the registration application filed under this article.

(11) State license means a license to operate a credit access business issued by the Texas

Consumer Credit Commissioner under Chapter 393, Subchapter G of the Texas Finance Code,

or successor section.

Sec. 26-123. – Violations; penalty.

(a) A person who violates a provision of this article, or who fails to perform an act required of the

person by this article, commits an offense. A person commits a separate offense for each and

every violation relating to an extension of consumer credit, and for each day during which a

violation is committed, permitted, or continued.

(b) An offense under this article is punishable by a fine of not more than $500.

(c) A culpable mental state is not required for the commission of an offense under this Article IV of

Chapter 26 of the Bedford Code of City Ordinances and need not be proved.

(d) The penalties provided for in Subsection (b) are in addition to any other remedies that the city may

have under city ordinances and state law.

Sec. 26-124. – Defenses.

It is an affirmative defense to prosecution under this article that at the time of the alleged offense the

person was not required to be licensed by the state as a credit access business under Chapter 393,

Subchapter G, of the Texas Finance Code.

Sec. 26-125. – Registration required.

(a) A person commits an offense if the person acts, operates, or conducts businesses as a credit access

business without a valid certificate of registration.

(b) A certificate of registration is required for each physically separate credit access business.

26-126. – Registration application.

(a) To obtain a certificate of registration for a credit access business, a person must submit an

application on a form provided for that purpose to the director. The application must contain the

following:

(1) The name, street address, mailing address, facsimile number, email address and

telephone number of the applicant.

(2) The business or trade name, street address, mailing address, facsimile number, email

and website address and telephone number of the credit access business.

(3) The names, street addresses, mailing addresses, email addresses and telephone

numbers of all owners of the credit access business, and the nature and extent of each

person’s interest in the credit access business.

ORDINANCE NO. 16-3183

(4) A copy of a current, valid state license held by the credit access business pursuant to

Chapter 393, Subchapter G of the Texas Finance Code.

(5) A copy of a current, valid certificate of occupancy showing that the credit access

business is in compliance with the Code of Ordinances of the City of Bedford.

(6) A non-refundable application fee as set out in the fee ordinance.

(b) An applicant or registrant shall notify the director within 45 calendar days after any material

change in the information contained in the application for a certificate of registration, including,

but not limited to, any change of address, including email and website addresses and telephone

number(s) and any change in the status of the state license held by the applicant or registrant.

Sec. 26-127. – Issuance and display of certificate of registration; presentment upon request.

(a) The director shall not issue to the applicant a certificate of registration until a completed

application under Section 26-126 is received and approved.

(b) A certificate of registration issued under this section must be conspicuously displayed to the

public in the credit access business. The certificate of registration must be presented upon

request to the director or any peace officer for examination.

(c) Denial of application or revocation of registration.

(1) An application may be denied for failure to comply with the requirements of this article, city

ordinances or state or federal law.

(2) A registration may be revoked for failure to comply with the requirements of this article, city

ordinances or state or federal law.

(3) Appeal. The denial of an application or the revocation of registration may be appealed to the

City Manager.

Sec. 26-128. – Expiration and renewal of certificate of registration.

(a) A certificate of registration expires on the earliest of:

(1) One year after the date of issuance; or

(2) The date of revocation, suspension, surrender, expiration without renewal, or other termination

of the registrant’s state license.

(b) A certificate of registration may be renewed by making application in accordance with Section 26-

  1. A registrant shall apply for renewal at least thirty (30) days before the expiration of the

registration.

Sec. 26-129. – Non-transferability.

A certificate of registration for a credit access business is not transferable.

Sec. 26-130. – Maintenance of records.

(a) A credit access business shall maintain a complete set of records of all extensions of consumer

credit arranged or obtained by the credit access business, which must include the following

information:

ORDINANCE NO. 16-3183

(1) The name and address of the consumer.

(2) The principal amount of cash actually advanced.

(3) The length of the extension of consumer credit, including the number of installments and

renewals.

(4) The fees charged by the credit access business to arrange or obtain an extension of consumer

credit.

(5) The documentation used to establish a consumer’s income under Section 26-131.

(6) If applicable, the documentation described in Section 26-132 for persons unable to read an

agreement or extension.

(b) A credit access business shall maintain a copy of each written agreement between the credit access

business and a consumer evidencing an extension of a consumer credit (including, but not limited

to, any refinancing or renewal granted to the consumer).

(c) A credit access business shall maintain copies of all quarterly reports filed with the Texas Consumer

Credit Commissioner under Section 393.627 of the Texas Finance Code.

(d) The records required to be maintained by a credit access business under this section must be

retained for at least three years.

(e) The records required to be maintained by a credit access business under this section must be made

immediately available for inspection by the director or a peace officer upon request during the usual

and customary business hours of the credit access business.

Sec. 26-131. – Restriction on extension of consumer credit.

(a) The cash advanced under an extension of consumer credit that a credit access business obtains for

a consumer or assists a consumer in obtaining in the form of a deferred presentment transaction may

not exceed twenty percent (20%) of the consumer’s gross monthly income.

(b) The cash advanced under an extension of consumer credit that a credit access business obtains for

a consumer or assists a consumer in obtaining in the form of a motor vehicle title loan may not

exceed the lesser of:

(1) Three percent (3%) of the consumer’s gross annual income; or

(2) Seventy percent (70%) of the current retail value of the motor vehicle.

(c) A credit access business shall use a paycheck or other documentation establishing income to

determine a consumer’s income.

(d) An extension of consumer credit that a credit access business obtains for a consumer or assists a

consumer in obtaining and that provides for repayment in installments may not be payable in more

than four installments. Proceeds from each installment must be used to repay at least twenty-five

percent (25%) of the principal amount of the extension of consumer credit. An extension of consumer

credit that provides for repayment in installments many not be refinanced or renewed.

(e) An extension of consumer credit that a credit access business obtains for a consumer or assists a

consumer in obtaining and that provides for a single lump sum repayment may not be refinanced or

renewed more than three (3) times. Proceeds from each refinancing or renewal must be used to repay

at least twenty-five percent (25%) of the principal amount of the original extension of consumer credit.

ORDINANCE NO. 16-3183

(f) For purposes of this section, an extension of consumer credit that is made to a consumer within seven

(7) days after a previous extension of consumer credit has been paid by the consumer will constitute

a refinancing or renewal.

Sec. 26-132. – Requirement of consumer understanding of agreement.

(a) Every agreement between the credit access business and a consumer evidencing an extension of

consumer credit (including, but not limited to, any refinancing or renewal granted to the consumer),

must be written in the consumer’s language of preference. Every credit access business location

must maintain on its premises, to be available for use by consumers, agreements in the English and

Spanish languages.

(b) For every consumer who cannot read, every agreement between the credit access business and a

consumer evidencing an extension of consumer credit (including, but not limited to, any refinancing

or renewal granted to the consumer) must be read to the consumer in its entirety in the consumer’s

language of preference, prior to the consumer’s signature.

(c) For every consumer who cannot read, every disclosure and notice required by law must be read to

the consumers in its entirety in the consumer’s language of preference, prior to the consumer’s

signature.

Sec. 26-133. – Referral to consumer credit counseling.

A credit access business shall provide a form, to be prescribed by the director, to each consumer

seeking assistance in obtaining an extension of consumer credit which references non-profit agencies

that provide financial education and training programs and agencies with cash assistance programs.

The form will also contain information regarding extensions of consumer credit, and must include the

information required by 26-130(a)(1)-(5), and subsection(6) where applicable, of this ordinance specific

to the loan agreement with the consumer. If the director has prescribed a form in the consumer’s

language of preference, the form must be provided in the consumer’s language of preference.

SECTION 3. That should any article, section, part, paragraph, sentence, phrase, clause, or word of this

ordinance, for any reason be held illegal, inoperative, or invalid, or if any exception to or

limitation upon any general provision herein contained be held to be unconstitutional or

invalid or ineffective, the remainder shall, nevertheless, stand effective and valid as if it had

been enacted and ordained without the portion held to be illegal, inoperative,

unconstitutional, invalid, or ineffective.

SECTION 4. That any person violating any of the provisions of this ordinance shall be deemed guilty

of a misdemeanor and upon conviction thereof shall be fined in a sum not to exceed

Five Hundred Dollars ($500.00) and a separate offense shall be deemed committed upon

each day during or on which a violation occurs or continues.

SECTION 5. That this ordinance shall become effective and shall be in full force and effect from and

after the final date of passage and adoption by the City Council of the City of Bedford,

Texas and following publication as provided by law.

PRESENTED AND PASSED this 27th day of September 2016, by a vote of 7 ayes, 0 nays and 0

abstentions, at a regular meeting of the City Council of the City of Bedford, Texas.

__________________________________

Jim Griffin, Mayor

ORDINANCE NO. 16-3183

ATTEST:

________________________________________

Michael Wells, City Secretary

APPROVED AS TO FORM:

Stan Lowry. City Attorney

CFPB Takes Broadside- Leadership Structure Ruled Unconstitutional!

October 11th, 2016

CFPB Leadership Structure Ruled Unconstitutional by D.C Circuit Court -)

This just in from Ben Lane:

“In a unanimous decision of the three justices of the United States Court of Appeals for the District of Columbia Circuit, the court ruled that the CFPB’s current structure allows the director to wield far too much power, more than any other agency in the government.”

‘Because the Director alone heads the agency without Presidential supervision, and in light of the CFPB’s broad authority over the U.S. economy, the Director enjoys significantly more unilateral power than any single member of any other independent agency,’ the court writes.

And it gets worse for the CFPB.

“From the court’s decision:By “unilateral power,” we mean power that is not checked by the President or by other colleagues. Indeed, other than the President, the Director of the CFPB is the single most powerful official in the entire United States Government, at least when measured in terms of unilateral power. 

That is not an overstatement. What’s this mean  for the Payday Loan Industry?

What about the Speaker of the House, you might ask? The Speaker can pass legislation only if 218 Members agree. The Senate Majority Leader? The Leader needs 60 Senators to invoke cloture, and needs a majority of Senators (usually 51 Senators or 50 plus the Vice President) to approve a law or nomination. The Chief Justice? The Chief Justice must obtain four other Justices’ votes for his or her position to prevail. The Chair of the Federal Reserve? The Chair needs the approval of a majority of the Federal Reserve Board. The Secretary of Defense? The Secretary is supervised and directed by the President. On any decision, the Secretary must do as the President says. So too with the Secretary of State, and the Secretary of the Treasury, and the Attorney General.

In short, the court writes, the director of the CFPB is the “single most powerful official in the entire U.S. Government, other than the President,” in terms of unilateral power.

Email TrihouseConsulting for a PDF of the Original D.C. Court Decision: Original Article Put “DC Circuit in Subject.”

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Evil Center for Responsible Lending vs Payday Loan Industry

October 4th, 2016

Why do payday loan lenders take a beating by the media and the politicians so often? Because of organized campaigns like this one launched by the CRL. [Remember the Center for Irresponsible Lending? Founded by credit union and bank executives – think Wells Fargo – whose mission is to crush the payday loan industry so they can maintain their 2000% APR NSF fees?]

The CFPB has received over 170,000 positive payday loan testimonials from real borrowers. That’s great! We’ve done a good job with this. But our “system” for asking our happy customers to enter  these positive stories on the CFPB website is CLUNKY, SLOW and CUMBERSOME.

Now, take a look at the CRL campaign to bury us:

stop-payday-loan-sharks

The CRL makes it so easy. They send every Tom, Dick and Harry to this website. The negative payday loan commentary is already present in the comment box. All their sycophants have to do is enter a fake name, email address and zip code, hit “Submit” and the dirty deed is done! We eat it!

SMOOTH! SMART!! And EVIL!!!

Here’s their website: CRL EVIL WEBSITE

And, in case you didn’t submit a POSITIVE payday loan testimonial – which you should – here’s their EVIL “Thank You Page.”

Here’s what you need to do:

  • Go to the CRL website
  • Enter phony information like the CRL idiots do
  • “Submit” your bogus info and share the Thank You page with friends, family and customers; like they do.
  • Oh, and even better, write a simple positive payday loan “Template” testimonial for those with whom you share.

PDL-Biz: 2:00 Minute Video Can Save You $2.8M Dollars.

September 25th, 2016

Need money? GROWING your operation? Or, starting a new one? You need capital!

I have it!

Let me tell you my story.  And it’s not a story of triumph.  There is no happy ending here.

I was a computer guy and my computer business became a grind.  Razor thin margins kept getting thinner… and so much work.  I was tired of it.  And it wasn’t making great money.

The guy next door to my office was running a payday loan office.   I was amazed.  He was never there and he had only one really dumb – but very attractive – employee.  As I sat in my lonely and boring computer store, I’d see these people line up next door and borrow money.  The employee would come in very late.  Be gone for 2-3 hours for lunch.  And would leave early.

Yet, these customers kept coming back.  Sometimes 3-4 times per day.  There was obviously real demand here.  The owner decided he didn’t feel like running this business anymore, and the landlord for the building asked me if I would like to take over the location.

I jumped at the chance.  It couldn’t possibly be worse than trying to set up AOL for people that were 200 years old.

I got my Florida State deferred presentment license and opened up my first check cashing/payday loan store in 1998.   It was a beautiful time.  There was no CFPB, and State regulations were minimal.

I was earning amazing returns.   Very few collections issues.  Very little fraud.  It was the “golden age” of lending!

But my success was causing me problems.  I wasn’t that well capitalized.  I was quickly running out of money to lend.  People would ask to take out a loan. I would tell them to come back on Friday, after I had received some payments.  And sometimes, I didn’t have the money for them on Friday, so they’d come back on Saturday.

I was stuck.  I was turning away too many people. There weren’t many banking options available.  So I found a partner.  I offered up 50% of my 4 month old company for $150,000.00.  He agreed to lend the business the money and I thought that I had hit the jackpot.

Over the next 10 years, the one store grew to 5.  And our revenues were pretty great.  Then the partnership went bad.  We wanted to go in different directions. I called it the Internet -)

Eventually I sold my 50% of the loan business just to escape from the conflict and negativity.

Looking back, I realize that the investors’ original $150k had been so VERY expensive.   As the business grew, so did his salary, his expense account and his dividends.  I’m not disrespecting his investment.  Or the risk that he took.

When you’re starting out, you try and focus on not failing.  But you have to also consider what happens if you’re successful?  I hadn’t really put any limitations or contingencies for the growth of one store into a small chain.  Our small stores had low overhead and were very profitable.

From this business, the funding partner collected approximately $2.8 million dollars.  That was pretty awesome.

For him.

But not for me.

If I had other funding options at the time, it would have been amazing.

If I had the ability to arrange a combination of bank financing to grow my business, the difference in my results after 10 years of work?

Awesome!

Epic!!

It would have been life changing!!! I would have earned more than DOUBLE the income.  No partnership conflict and in total control of my company and my future.

So now, years later, I discover this unique and effective funding platform, I get really excited.  I have to share this with every guy that’s starting out.  Or growing.  If you have a half-way decent credit rating, this program can get you the funding you need.  

Holy CRAP!

Without giving up your precious equity.  And creating a platform for further growth, as you need it.

Remember?  Life changing.  Access to the capital you need without losing control?

So, I’m begging you.  IF you’re looking for some capital to grow your business, PLEASE fill out this short form and get in touch with me. [Click: Easy Form.]

My capital raising programs are so much better than seeking out private money at 20-30%, or giving up equity.

Here’s a 2 minute video to explain what I do.  Two minutes!  I WANT to save you $2.8 million dollars.

Can you afford NOT to invest 2 minutes to get serious money for your business?

With Jer at Trihouse, I’ve already successfully helped payday, title loan and MSB’s get money that makes sense! [And a few other industries as well.]

DO THIS! It costs you nothing and there is no obligation. Give your business a chance!

Click here: “Yes I’m interested!” Watch the 2 minute movie explaining everything.

After investing 2 minutes of your time, simply click the APPLY button at he bottom of the 2 minute movie page and I’ll get your money for you.

AGAIN, there is no cost or obligation to see where you are and what I can do for you.

Be awesome out there.  And don’t let anybody, or anything hold you back!

Sincerely,
Miro P. with Jer at Trihouse

Finally, to receive future updates from us, simply plug in your First Name and your email address. Then click on the “Subscribe Link” that you’ll shortly receive in your Inbox. No Spam and no Garbage. Spam is for jerks anw we are not jerks! Now go make some $$.

Connecticut: Tribe Payday Loan Lender May Continue

September 16th, 2016

PayDay Loan Ruling: Connecticut Sovereign Nation Status

The state of Connecticut’s banking department must decide whether to appeal a ruling that appears to allow an Oklahoma Indian tribe to continue to offer payday loans in Connecticut. The Otoe Missouri Tribal Nation brought a lawsuit claiming tribal sovereignty protects it from Connecticut usury rate enforcement, after the Connecticut banking department determined the Otoe Missouri Tribal Nation had violated state loan laws. The Otoe Missouri Tribal Nation offres payday loan products having interest rates of more than 400 percent APR’s. However, a superior court judge has found in the tribe’s favor saying “its rights have been prejudiced.”

And the beat goes on…

CFPB Grossly Understates Positive Payday Loan Testimonials it Received

September 12th, 2016

We all know that our U.S. government agencies lie, cheat and steal even more than our politicians do. After all, these agencies are made up of ordinary people.

So it comes as NO SURPRISE that the CFPB failed to honestly reveal that 98.5% of the puny total number of payday loan testimonials submitted by ordinary borrowers on the CFPB payday loan website portal were POPSITIVE about the payday loan product!

According to the CFSA, during the 5 years data has been made available, “12,308 comments (or more than 98%) of the 12,546 comments submitted on short-term loans praised the industry and its products and services, or otherwise indicated positive experiences. “

Thus the old saying, “Statistics can be made to prove anything.” Ofcourse, in this CFPB instance, the government agency simply lied. So… what’s new? Zip!

To learn how to make money by lending money, Click Here!

Hillbilly Elegy: Best Selling Memoir Talks Payday Loans

September 2nd, 2016

Best Seller J.D. Vance Memoir Tells Us About Payday Loans

“On that day, a three-day payday loan, with a few dollars of interest, enabled me to avoid a significant overdraft fee. The legislators debating the merits of payday lending didn’t mention situations like that. The lesson? Powerful people sometimes do things to help people like me without really understanding people like me.”

“Robert Pondiscio of U.S. News says that “the book should . . . be required reading among those of us in education and ed policy.” Helen Andrews of National Review calls it “an intelligent and vivid exploration of Scots-Irish culture in the United States.” And Clarence Page of the Chicago Tribune explains that “Vance helps us to understand how shrinking opportunities for low-income whites helped to fuel the rise of Trump.”

“Hillbilly Elegy” is one of the most surprising books out this summer. Written by J.D. Vance, it’s his story of a  challenged childhood and his”rise out of poverty. ” Widely regaled for its true grit description of the hardships faced by millions of people living in this great nation, the U.S.A.

Forbes writer Joe Colangelo says: “To this list, I’d like to add another reason the book is important: Vance’s memoir demonstrates that too often, government officials create regulations that undermine the needs of the people they’re supposed to be helping. This is particularly clear in a passage about payday lending.”

Check it out on Amazon: Click Here to Review on Amazon

Here’s a Forbes piece by Joe Colangelo about Hillbilly Elegy.
You gotta read it! Read Forbes

The smartest way to defend your business is to ALWAYS BE LEARNING

Learn how to make money lending money: Invest in our Training Manuals:  “Start a Payday Loan Business” and “Start a Car Title Loan Business.”

Best, Jer@TrihouseConsulting.com

Scummy PDL Marketing Tactics: Continued

August 16th, 2016

If this wasn’t so EVIL, I’d be jealous!

If you have a business website or are planning one, read on.

If this topic is too technical for you, forward it to your website developer! It’s a big deal if you’ve been hit!

Static HTML websites are dead. WordPress sites having responsive, mobile friendly capabilities are the direction for our loan industry.

I’ve previously written about Google’s Adwords policy regarding loan products.

Google has banned all loan products having >36% APR’s.

So…for those of us who were foolish enough to depend solely on Google Adwords to drive our loan transaction volume, we’ve been crushed.

UNLESS your Team has the talent to take advantage of this Google development.

The creators of 404 to 301 Plugin Redirect did!

“A 404 error is often returned when website pages have been moved or deleted.. If you care about your website, you should take steps to avoid 404 errors as it affects your search engine optimization [SEO] negatively. 404 ( Page not found ) errors are common and we all hate it, especially Search engines like Google and Bing! Install this plugin then sit back and relax. It will take care of 404 errors!”

Without getting too technical, the creators of 404 to 301 Plugin Redirect created a Plugin for WordPress websites that inserts the following code on your Homepage AND on an Exit Popup:

“Make Ends Meet With Payday Loans.”

“It is often very easy to face any financial emergency if you have adequate money to pay for them. But, this can seem all too impossible if you often live from one paycheck to another. How will you be able to pay for your urgent financial emergencies? Most often than not, you can’t. Face the reality, when your job is unable to pay for your financial emergencies, it is best to turn to payday loan providers out there.”
[rest of content removed including link to payday loans site]

NOTE: This evil tactic came to my attention because my Team runs several websites on WordPress platforms including eCheckSystem.com, Automobilepawn.com, PaydayLoanIndustryBlog.com.

What happened?

You run a website using a WordPress platform. You want to avoid 404 errors. You find a free plugin to enable your site to avoid displaying a 404 error. EXCEPT, this plugin advertises payday loans for your competitor!

Get rid of this Plugin! Today!

And be on the lookout for more dastardly tactics employed by your payday loan competitors.

Read the original article by Wordfence HERE: WordFence

TREND: Online Title Loan, Installment and Line of Credit Lending

August 14th, 2016

More “Fintech” Lenders Enter the Online Lending Arena

Startups offering 100% online installment, car title and line-of-credit lending are receiving a LOT of attention these days. And NOT just by the CFPB.

VC’s, hedge funds, family offices and entrepreneurs are entering the alternative financial services space in droves.

Lending money using a car, motorcycle, RV or boat title as security has been around a long time. So has installment, payday and line-of-credit lending.

We’ve been making $2500+ loans in California since 1998. In the “good old days” we charged borrowers 15% – 30% PER MONTH on their unpaid loan principal.

Today – at least in Los Angeles – we get 6% – 8% per month. Still not a bad return! 96% per year… In Texas, payday, title and installment lenders charge 20% – 30% per month on the unpaid principal. Every State varies…

A $3000 California loan on a $6000 automobile yields $360/month to $480/month interest.

And, the borrower still owes us the $3000 loan principal.

So, when I hear about new “FinTech” lenders launching loan platforms offering borrowers title loans serviced 100% online, I’m not surprised.

Example? Finova Financial just secured $52.5 million in funding.

What does Finova Financial do? Cloud and mobile-based auto title loan lending. Basically, Finova Financial is marketing, funding and servicing auto title loans 100% via the Internet.

Who funded Finova Financial? 500 Startups, Refractor Capital, the founder of NerdWallet and a company based in the United Arab Emirates.

Is this really some unique, cutting edge loan platform offering title loans? Hell no!

As we’ve written about in our Title Loan Training Manual, there are already a number of online title lenders that enable borrowers to access, qualify for and receive funding for a title loan via the Internet. All done with no brick-n-mortar footprint!

Some of these business models offer title loans. Some offer installment loans. Others, like Finova Financial offer a hybrid title loan line-of-credit [LOC].

New players are entering the “alternative financial services” space every day; in spite of the noise coming out of the CFPB.

The potential profits and the HUGE demographic that these loan products appeal to is hard to turn your back on!

Money has been and will continue to be MADE!

Business Wire reports 70 million consumers pay $138 billion in fees annually for alternative financial products.

FOR SALE: Online Installment loan company in business since early 2015. State licensed.
$2.5 million out on loan
$400,000 per month in revenue
18% delinquency
3400 loans to date. Info? Jer@TrihouseConsulting.com

Finova claims they will focus on “social-impact, they will be providing up to 70% lower costs to consumers on Car Equity Line of Credit (C-LOC) with complete loan term transparency.” Finova Financial will not employ the typical 30-day loan principal due date forced on consumers by the majority of title loan lenders.

How-Start-Car-Title-Pawn-Business

Title Loan Biz

Finova Financial also claims on their website, “By providing an online lending platform that offers fast, affordable loans based on the equity in your car. It aims to deliver an online option to 70 million underserved Americans as well as 24/7 access to capital.”

Finova Financial is certainly NOT the first to enter this industry offering online servicing. Nor will they be the last. What they have accomplised is a PR event. They’ve made some noise, raised some money and assembled a Team.

Nothing anyone reading these words cannot accomplish!

You don’t even need to build the lending platform yourself! There are several quality “off-the-shelf” lending platforms available that enable a new lender to launch in a matter of days. It’s the same situation for consumer underwriting. There are a multitude of consumer underwriting platforms that easily integate with these same cloud-based and mobile friendly loan platforms. [I know them all!]

This is only the beginning!!! Consumers need money every day; since the beginning of time. Sure, we as lenders must always evolve, adapt, adjust, pivot, transform… develop new products… but we will never go away! Our customers need us and there is serious money to be made. After all, it’s not as if you’re buying a restaurant franchise and watching your produce rot! Your inventory is M-O-N-E-Y.

Questions? Help? Want to purchase a $2.5M installment loan portfolio having 3400 loans on the books? Jer@TrihouseConsulting.com

Open a Payday Loan Company

August 5th, 2016

You want to start a small dollar loan business?

A payday loan or car title loan company for example?

Don’t overly complicate this.

How to start a payday loan business

Start a PDL Company

If they are legal where you live, simply visit a competitor offering the types of loans you would like to offer. Appy for an receive a loan. Borrow the minimum amount; say $50 – $100. Get copies of EVERYTHING. All the documents, take a quick picture of the loan charts on the walls. Take note of the licensing authority typically disclosed on the walls of this competitor as well. In the USA, Canada, UK… these consumer disclosures are mandated.

Then, take these docs home and reach out to the licensing authority for details on applying for a license. There is much more to this subject than can be explained here… consider our Payday Loan Startup Manual described here: Payday Loan Business Bible

And, if payday loan or car title loan companies are not legal where you live/work, consider offering them via the Internet. This is not much more challenging than opening a payday loan or title loan store. And of course, we thoroughly teach you how to do this in our “Bible.”

Questions? Jer@PaydayLoanIndustryBlog.com

PDL Business Intel: Get Your Competion to Spill Their Guts

July 27th, 2016

How to sit down with your competition’s employees and get them to spill their guts!

Every payday loan, title loan and installment loan business owner needs information. Want to know what your competition is doing?

Want to know what’s working for other payday loan, title loan and installment lenders in your area?

Thinking of starting a loan business but you’re not sure of where to begin?

Sit down with your competition’s employees and allow them to spill their guts.

Try Craigslist.com. Run an ad. Here’s how to get the dirt on the competition…

Payday loan ACH, credit cards and ICL

Here’s a free template you may use to start:

Job Description

LOAN REPRESENTATIVE & AREA MANAGER

YOUR COMPANY NAME Loans is a short-term consumer finance company specializing in car title and payday loans.

We are currently seeking a Loan Representative & an Area Manager to join our growing company and work in our YOUR CITY office.

We are actively recruiting candidates that are looking for a career opportunity with our company. We value the relationships we have cultivated in the communities we serve and expect our employees to be an example of honesty and respect when dealing with them.

YOUR COMPANY NAME Loans has a special approach to business and we only desire experienced candidates that can step up and work towards the exceptional customer service and image we represent.

Daily Responsibilities to include:

• Providing customer service in person as well as over the phone.
• Processing loans and payments.
• Outbound collection calls.
• Managing defaulted accounts.
• Daily reporting.
• Daily deposits (no cash handling required).
• Handling heavy phone volume.
• General office duties.
• Marketing.

Job Requirements

To be considered eligible for our Loan Representative or Area Manager positions, you must meet the following requirements:
• 12+ months experience with a PDL/title lender (We guarantee we’ll be discreet).
• Excellent customer service skills.
• Computer proficient with full understanding of basic operating systems.
• Basic math skills.
• Excellent communication and organizational skills.
• Ability to multi-task and work in a fast-paced environment.
• Ability to handle heavy phone volume.
• Ability to advance and make serious $$.

And, when I’m lucky enough to get a superior candidate, I often hire, collaborate or at least pay them a couple of hundred bucks for their time. It just feels right.

Jer@PaydayManual.com