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

ACH for State and Tribe Lenders-Google Payday Loans

July 21st, 2016

Wondering why payday loan ads are still showing in Google Adwords?

[Now Available for tribe and state lenders: ACH, credit card payments, Image Cash Letters (ICL) and ACH transaction verification for NACHA compliance. 24+ banks signed on. Email Jer@TrihouseConsulting.com ]

I just checked my Google search results for “payday loan” on both my cell phones, my laptops, my desktop computers and my iPad. Payday loan ads are still showing. [Confession: I owe Check-N-Go roughly $12 because I clicked on their Google PPC ad. SORRY!]

Google delayed implementation of their new Google PPC adwords program an additional week. And, they’re “rolling it out” in a piecemeal fashion.

Here’s a link to Google’s official Policy Page: Google Payday Loan Adwords Policy.

In a nutshell, this is big brother Google’s payday loan guidelines:

  • When promoting financial services and products, you must comply with state and local regulations for any region that your ads target — for example, include specific disclosures required by local law.
  • Your ad may be disapproved for:
  • Failure to provide legitimate contact information for a physical location for the business being promoted
  • Failure to disclose associated fees
  • Failure to include links to third-party accreditation or endorsement where affiliation is asserted or implied, particularly when it serves to improve the reputation of the site

 

Personal Loans: Google defines personal loans as “lending money from one individual, organization, or entity to an individual consumer on a non-recurring basis, not for the purpose of financing purchase of a fixed asset or education. Personal loan consumers require information about the quality, features, fees, risks, and benefits of loan products in order to make informed decisions about whether to undertake the loan.”

  • Examples: Payday loans, title loans, pawnshops
  • Not included:: Mortgages, car loans, student loans, revolving lines of credit (such as credit cards, personal lines of credit)

“Advertisers for personal loans must prominently disclose additional information on their destination site or app.”

  • Your ad may be disapproved for:
  • Failure to provide minimum and maximum period for repayment
  • Failure to provide maximum Annual Percentage Rate (APR), which generally includes interest rate plus fees and other costs for a year, or similar other rate calculated consistently with local law. [What about tribe – sovereign nation lenders?]
  • Failure to display a representative example of the total cost of the loan, including all applicable fees
  • We want to protect our users from deceptive or harmful financial products.
  • We do not allow the promotion of:
  • Personal loans which require repayment in full in 60 days or less from the date the loan is issued (we refer to these as “Short-term personal loans”). This policy applies to advertisers who offer loans directly, lead generators, and those who connect consumers with third-party lenders.

High APR Personal Loans

  • “In the United States, we do not allow ads for personal loans where the Annual Percentage Rate (APR) is 36% or higher. Advertisers for personal loans in the United States must display their maximum APR, calculated consistently with the Truth in Lending Act (TILA).This policy applies to advertisers who make loans directly, lead generators, and those who connect consumers with third-party lenders.”

So… what about tribe payday lenders? What has Google decided is their fate?

Madden v. Midland Funding: Turns Fintech & Payday Loan Industry Upside Down?

July 14th, 2016

Should non-bank debt purchasers who buy loan portfolios from Fintech, tribe payday lenders, and national banks make certain the usury rates of these portfolios do not exceed State maximum interest rates? Do these portfolios require lower valuations when the borrowers reside in the Second Circuit (Connecticut, New York and Vermont)? Will access to credit to residents of these States be impeded?  Should these original lenders maintain valid economic interests in these loan portfolios when assigned or sold?

5000 Payday Lenders Win via U.S. House of Representatives

July 9th, 2016

Payday Loan Lending

By Jer Trihouse. The battle between the CFPB and payday lenders is not yet decided. It appears the members of the  U.S. House of Representatives understand how important access to credit is for consumers throughout America!

It’s refreshing to witness the heroic efforts by our representatives in the House against unelected CFPB bureaucrats and their draconian efforts to place  credit restrictions on consumers for solving their daily financial challenges.

Car title loan company

Start a PDL Business

FISCA represents the thousands of small mom and pop payday loan operators offering short-term, small dollar loans to their  clients.

Having actually visited payday loan stores in California, Nevada and Tennessee recently (unlike any CFPB employee), I can attest to the fact that consumers are scared. They are VERY worried that they will no longer have access to a $300 – $1000 payday loan from thier local loan center when facing a financial emergency.

Payday Lenders Win

Per Ed D’Alessio, FiSCA’s Executive Director, “By passing H.R. 5485 and rejecting the Sewell-Waters Amendment, this bipartisan group of lawmakers took an important step in keeping critical and often lifesaving lines of credit open for hard-working Americans.”

“H.R. 5485 requires the Consumer Financial Protection Bureau (CFPB) to pause the implementation of the proposed federal rules governing small dollar lending in America, an extensive and economically devastating regulation that would deny access to short-term credit options to millions of Americans.”

Financial Service Centers Of America Statement In Response To H.R. 5485 And Sewell-Waters Amendment Votes

WASHINGTON, July 8, 2016 /PRNewswire/ — Financial Service Centers of America (FiSCA), the national trade association representing 5,000-member financial service center locations around the U.S., issued the following statement today in response to the votes on H.R. 5485, the FY 2017 Financial Services and General Government Appropriations Act, and the Sewell-Waters Amendment #17: “We applaud the…

From Prison to Payday Loans to Entrepreneurship to CFPB Testimony

July 7th, 2016

In February, I was given the unlikely opportunity to testify before Congress on the Consumer Financial Protection Bureau’s (CFPB) proposed small-dollar lending rule.

My testimony was unlikely because I grew up in public housing, spent time in federal prison for selling drugs – and I’m a satisfied customer of the payday lending industry.

Now with the CFBP officially releasing its proposed rule on June 2, a rule that will threaten access to small-dollar loans for millions of Americans just like me, I felt compelled to tell my story and make sure others know the true value these loans have for people in need of short term credit.

Mine is a true success story and I owe a great deal of it to the payday lending industry.

Without the payday and title loans I was able to get, nothing that I have been able to achieve would have happened.

Ten years ago, I started a commercial cleaning business, Imperial Cleaning Systems, Inc. in my hometown of Nashville, Tennessee. Today I have…

Read Robert Sherrill’s full story here on The Hill, the U.S. Congress Blog:

http://thehill.com/blogs/congress-blog/economy-budget/286718-what-payday-loans-mean-to-me

Here’s a shorter link via Google if you need it: http://goo.gl/GqTZL3

Mr. Sherrill’s story is amazing! Forward this email to EVERYONE. Help our industry.

Thank You, Jer – Trihouse

Texas Payday Loan City Ordinance

July 4th, 2016

Payday Loan City Ordinace Issues

“The Ordinance,” a documentary film created by Deidox Films, will debut at 7 p.m. Thursday July 7th at Grand Avenue Theater, 2809 Oak Mark Drive in Belton.

The film follows the passage of payday loan-related city ordinances across Texas, and prominently features the passage of the Temple city ordinance in December 2015. The showing will be followed by a 30-minute panel discussion with the filmmakers, Temple Mayor Danny Dunn, and local faith and nonprofit leaders who were involved in the passage of the Temple ordinance.

The public is invited to a free showing of the 30-minute film.

Temple City Council deliberated and voted in late 2015 to adopt a city ordinance that has now been passed by more than 30 Texas cities. The ordinance requires payday and auto title businesses to file with the city, provide the loan terms in a borrower’s first language, and put a percentage of each rollover payment toward the principal amount. Previously, rollover fees did not get applied to the principal, but only extended the terms of the loan. Thus, many borrowers ended up paying more in fees and interest than the principal, and still had the entire principal amount to pay off. With the new ordinance in place, effective March 2016, a portion of each rollover fee is applied to the principal.

Here’s a Google link to “The Temple Daily Telegram” discussing the film:

The post Texas Payday Loan City Ordinance appeared first on Payday & Title Lending.

CFPB vs ACH Processor Intercept EFT

June 7th, 2016

ACH Processor for Payday Loan and Car Title Loan Lenders Charged by CFPB

42. For example, an ODFI complained to Defendants that one of its clients, an auto title lender, which was debiting varying amounts from consumers’ accounts multiple times, did not have the contractual right or proper consumer authorization to do so, stating that it was “not ok [for the] merchant to us[e] the ACH to ‘sneak’ attack a consumer’s account, [as] it will only draw regulatory attention.” 

Consumer Financial Protection Bureau, Plaintiff, v. Intercept Corporation [InterceptEFT],

d/b/a InterceptEFT,

Bryan Smith, individually, and as owner and president of Intercept Corporation,

Craig Dresser, individually, and as owner and CEO of Intercept Corporation Defendants

Alleged by the CFPB:

Defendants have failed to heed warnings from banks and consumers.

40. Defendants have ignored warnings from ODFIs and consumers that some of Intercept’s clients’ business activities were likely illegal or that debits were not authorized by consumers.

41. Intercept’s ODFIs have expressed concerns to Intercept, Smith, and Dresser about potential indicia of fraud by certain of Intercept’s clients, such as high return rates, discrepancies between the dates and amounts debited from consumers’ accounts compared to what the consumer had authorized, changes in lender names from the initial loan agreements with the consumer, and missing telephone scripts for ACH transactions authorized by phone.

42. For example, an ODFI complained to Defendants that one of its clients, an auto title lender, which was debiting varying amounts from consumers’ accounts multiple times, did not have the contractual right or proper consumer authorization to do so, stating that it was “not ok [for the] merchant to us[e] the ACH to ‘sneak’ attack a consumer’s account, [as] it will only draw regulatory attention.”

43. On numerous occasions, Smith and Dresser have been personally involved in responding to Intercept ODFIs when those banks expressed concerns about certain Intercept clients or transactions, including concerns about high transaction volumes, high return rates, loans being made to consumers in states where those loans were illegal, or  complaints from consumers that they had not authorized withdrawals.

44. If an ODFI raised concerns or terminated its relationship with Intercept, Smith and Dresser would find a new ODFI to process on behalf of Intercept for the same clients. As a result, Intercept had relationships with eight different ODFIs between 2008 and 2014, sometimes processing through three different ODFIs at the same time. Case 3:16-cv-00144-ARS Document 1 Filed 06/06/16 Page 8 of 269

45. For example, in at least once instance, Intercept entered into a short-term or trial period with an ODFI to process a limited number of transactions through the bank, and then, instead, ran millions of dollars of ACH transactions through the bank, generating high volumes of returns in disputed transactions.

46. The ODFI was initially reluctant to do business with Intercept due to Intercept’s projected transaction volume and historical return rates for certain clients. Defendant Dresser responded to these concerns by urging the bank to continue processing for a trial period, stating that what made Intercept successful was its willingness to do business with companies that others would not, including companies that were not considered “clean business.”

47. The ODFI continued to express concerns about the number of returns generated by Intercept’s ACH transactions, which exceeded the terms of their trial period, stating that the bank was receiving thousands of returns per day. The bank further warned Defendants that the return percentages were so high they could trigger an audit.

Here’s a link to the complete Complaint and Civil Action: CFPB vs ACH Processor Intercept EFT

Need an ACH Processor and an alternative to ACH?

Fill out my online form.

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Google Blows Up Payday Loan Industry. Lending Club Impact

May 11th, 2016

Hey PaydayLoan Biz Fan,

Google update and Lending Club implodes? This means total upheaval in our industry:
From Google today:

“To enforce the policy, those seeking to market financial products through Google’s sprawling advertising network will be required to disclose the length of the loan and the annual interest rate before they will be allowed to place ads. In addition to the broad payday loan ad ban, Google will not display ads from lenders who charge annual interest rates of 36 percent or more in the United States. The same standards will apply to sites that serve as middlemen who connect distressed borrowers to those lenders.”

My immediate interpretation? 

* Google = total hypocracy! Google Ventures provided $14 million dollars to Sasha Orloff at Lendup – a payday lender – back in 2013!

* A tremendous opportunity for those of us with the creativity build-out alternative marketing channels enabling small dollar loan consumers to solve their temporary financial challenges and to tell Google and Facebook to F%%$$ off. MassRoots is doing it for cannabis. Gun sales continue to thrive via new strategies as well.

* Lead generators are toast for now. Witness T3 leads. They were experiencing bad times long before this latest Google policy change.

* Brick-n-mortar operators move up the food chain and are in “the catbird seat.” Location, signage, branding, offline marketing, mobile phone friendly websites, blogging… is more important than ever. B & M valuations headed up for this cycle. Suddenly, the guy or gal consumed with running their store(s) no longer needs to dissect Google’s PPC strategy.

This new Google initiative doesn’t mean payday loan ads will no longer appear. It simply means the 1st 4 ads at the top of Google search results will not contain sponsored ads.

Anyone with a brain knows the single-payment PDL product has been phasing out.The new mantra is “personal loan,” installment loan,” “line-of-credit…” These holier than thous will never succeeed in shutting down financial services products that millions of consumers want and need!

On another front, Lending Club imploded yesterday. Their CEO got caught with his hand in the cookie jar. What’s this mean for us? Lendup loaned out $1 Billion dollars in the 1st quarter of this year! This was off-balance sheet money. Now, Lendup, Prosper, OnDeck, Kabbage, Avant… the “FinTech’s” will have a hell of a time offloading, securitizing and enticing the “capital” to their lending platforms. Although they have a tendency to appeal to 620 and higher FICO scores, they generate leads and funnel them to PDL lead generators and direct lenders. Competition from them is on the decline; at least for the forseeable future.

One more time: DISRUPTION = OPPORTUNITY. Seize the day! Lending money to consumers and small businesses will not go away!

Will car title loans get the shaft from Big Brother Google as well? http://www.AutomobilePawn.com

Finally, I want to thank Google for making it easier for ENOVA to make money in the payday/small dollar lending space. Enova started as CashNetUSA back in the 90’s. They have a HUGE data base of borrowers that probably doubled in value after this Big Brother action by Google. I own a lot of ENOVA shares -)

Comment? jer@TrihouseConsulting.com

Was this email forwarded to you? Get my alerts on the PDL and title loan industry here:
http://www.PaydayManual.com
702-208-6736
https://www.linkedin.com/in/jerryayles
Teacher… Lender… Resource… Answers…

Jer@TrihouseConsulting.com 702-208-6736
Knowledge Store:
http://www.PaydayManual.com/
http://www.AutomobilePawn.com
http://www.PaydayLoanUniversity.com

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Why We Teach Entrepreneurs How to Make Money Lending Money

April 5th, 2016

By: Jer – Trihouse Consulting

Jer and Team Trihouse have taught thousands of entrepreneurs the correct way to identify, evaluate, negotiate, perform due diligence on, finance, turn-around and operate payday loan, car title loan, and installment loan businesses; the business of making money by lending money. Some people think we’re nuts for doing this, but the truth is that we’re far from crazy.

We make money doing it and so can YOU

Beginning in 1998, everyone  – and I mean EVERYONE – has paid money for our Manuals, “Bibles,” consulting assignments and phone consultations. This includes mom and pop startups, hedge funds, VC’s, tribes, franchises and every vendor serving our industry.

This is NOT B.S.

Everyone in the small dollar credit industry knows our CEO, “Jer” and the Trihouse Team. And, we can honestly say, the only complaints we’ve ever heard is that sometimes we don’t respond fast enough and Jer can be too blunt and direct [like using the term “loan shark”]. We are NOT sorry folks! We are BURIED!! The business of making money by lending money is fast paced, ever changing and when done correctly, HIGHLY profitable!

[Note: here’s a link to Jer quoted in The Wall Street Journal and here’s another to Bloomberg.

We learn too

Imagine how great it is to receive daily phone calls from payday loan operators, car title lenders and vendors who want to talk about their successes, their failures, their challenges, their industry, their fears, their profits… It’s AMAZING how much we continue to learn every day about the business of lending money!

payday loan marketing graphic wrap

We Teach You How to Make Money Lending Money

We receive  inbound phone calls  and emails DAILY enabling us to tap into a huge knowledge base about what is and isn’t working in the small dollar credit space. It’s like being on the front lines, in the trenches all over the USA, Canada, AU… hearing first hand about new strategies, new tactics, legislation, new lending products and vendor offerings BEFORE anyone else. This is a HUGE advantage for us and our clients.

We make money with this knowledge and share it with our clients.

Vendors offering ACH, same day funding, Image Cash Letters (ICL), debit card programs, call center services, direct mail programs, loan management software, collection solutions, marketing programs, etc. come to us FIRST! Why? Because they know we’re at the top of the food chain. We have an email list of thousands of payday loan and car title loan enthusiasts. We have our hand on the pulse of the lending industry. Vendors want to bounce ideas off us. You have a new solution for lenders? How do you get the word out? Buy a booth at one of the annual industry conventions? Pitch it to us! If it flys, we can intro it to the ENTIRE INDUSTRY IN ONE FELL SWOOP! IMMEDIATELY!!

It’s our hobby and we enjoy it

When we started writing and talking about the business of lending money, it was back in an era when there were no books on the topic. We had great fun writing about what we did all day, and it gave us not only pleasure, but was also a form of therapy. It was, in many ways, like keeping a diary. Over time, the books, courses and boot camps became our hobby, and the folks who invested in them became like members of our family. Many of the guys and gals we’ve worked with over the past decade still keep in touch. One friend with stores in Canada calls me every year from Mexico where he spends his winters running his payday and car title loan stores via the Internet!

We are not trying to own every payday loan, car title loan, or installment loan company in America

For those who think that we should want to buy all the loan companies ourselves, I think we can prove the insanity of that concept with some simple math. The payday loan industry generates roughly $50 billion dollars per year in revenue and between $4B and $6B in fees. WE DO NOT HAVE THE RESOURCES TO OWN THIS MARKET.

It’s estimated there are 40+ million U.S. residents who get a small dollar loan each year. There are several publicly traded small dollar credit lenders having hundreds of millions of dollars in annual revenue. [Disclosure: We own stock shares in several including ENOVA.] There are roughly 18,000 brick-n-mortar lenders in the USA. We have equity in some stores and in a few Internet portfolios plus stock positions in Enova and others. Hitting ownership of 100 stores would be a miracle, a GIANT pain in the ass, not a practical goal and would ruin my life-style. [Anyone who has ever called me knows that half the time I’m kayaking around the harbor in Newport Beach, Calif. or goofing off at some exotic location at one of the industry conventions.] We are happy with our holdings, but equally happy for everyone else who enters the small dollar credit space. There is more than enough to go around.

By training others on how to run and value payday, installment and car title businesses, we spare ourselves from idiots who ruin the market

Jer Trihouse Consulting

Jer Trihouse

93% of the small dollar credit lenders out there are good folks running a legitimate operation and treating their customers fairly. Then, there are the idiots who make our lives miserable. They abuse our customers. They attempt to avoid paying taxes. They push the envelope and bring unwarranted regulatory attention to all of us. This doesn’t have to be the situation but it occurs in all industries.

Everytime I hear about some payday loan borrower paying $2000 in fees on their payday loan and still owe the $500 principal it infuriates me! Why do this? IT’S GREEDY! And this creates havoc in our industry.

The media loves this stuff! How many more times will I have to read about some greedy payday loan or car title lender taking advantage of a borrower? How many more CFPB fines will be levied against an Internet lender? [Of course, we all know these lenders often simply settle because it’s cheaper than fighting the issue even when the charges are unfair. But that’s the subject of another Post.]

We all know about Scott Tucker and the $1.2B clawback the FED’s are pursuing against him. This situation is the exception not the norm. A payday or car title lender who operates within the rules can still make serious money. And this opportunity will continue to be the reality. Average folks NEED MONEY! Someone has to lend it to them. Lacking this, we’ll live in a very nasty environment.

If  our government makes it unprofitable to lend money to consumers and business, armageddon will occur. The rest of us will have to try and solve the mess created by these idiots. We want people to know how to correctly start and improve small dollar credit companies for our own selfish reasons.

Many of those we train bring us deals

Another HUGE side benefit to teaching, training and providing a marketplace for payday loan, installment loan and car title loan operators is that people we train often bring us deals and opportunities. This has been a source of great deals for our portfolio, as well as a way for these individuals to make a lot of money. This is a win/win that is a direct result of our teaching hobby.

Conclusion

While our day “job” will always revolve around managing and adding to our portfolio of payday loan , car title loan, installment loan and whatever the next iteration of lending products appear [Fintech, merchant cash advances…], our night job of writing and teaching about the small dollar lending industry has been equally enjoyable. We find this to be a great hobby, and have no plans to ever scale back on it.

Comments WELCOMED! Jer@PaydayLoanIndustryBlog.com 702-208-6736

The post Why We Teach Entrepreneurs How to Make Money Lending Money appeared first on Payday & Title Lending.


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