Cash America Conference Call-Abandons Payday Loans-Profits-China-CFPB-FCA and more

By | Jul 27, 2014

July 24th Cash America Conference Call

July 24th Cash America Conference Call

Grab some lunch, put up your feet and listen to this audio file. Cash America talks about China, abandoning the payday loan market, record, profits, the CEO’s retirement, and a host of other topics. YOU will profit and you will learn…
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Starting a Car Title Loan Business

By | Jul 25, 2014
Start a Car Title Loan Business

Start a Car Title Loan Business

By: AutomobilePawn.com [Learning/Training Center]. Our world of custom built, small dollar loans is evolving rapidly!
The incumbents have been knocked back on their heels. P2P, Kickstarter models, Lending Club, the DOJ, the CFPB, mobile banking, bank discontinuance… have DISRUPTED our playing field.

By systematically severing and dissecting custom built, “bespoke” consumer loans into small, discrete units of satisfaction, a disruptive Team can upset the current playing board and construct a new consumer game that attracts beguiles, and seduces not only borrowers, but capital.

You’ve invested hundreds of hours searching Google for every bit of information you can find on the car title loan industry.

Car title lenders and collateralized loan lenders are not being scrutinized to the same extent as payday loan lenders. Since payday loan lenders are pulling out of the industry, borrowers have fewer places to go for small, custom built loans. By now you should know Cash America is leaving the pdl industry for pawn. And, supremely experienced pawn teams have entered the collateralized loan industry to teach entrepreneurs how to succeed with collateralized loan businesses and provide the  automated tools enabling a lender to employ Ebay and Craigslist to earn unusually high ROI’s on their capital.

  • How to get started?
  • Are they legal in your state/province?
  • How much profit can you make?
  • How much money do you need to get started?
  • Where’s the best place to locate? Do you need a license?
  • What loan management software is available and how much of
  • an investment is it?
  • How can you add a car title/collateralized loan service to your existing
  • business?

Your first step to answer most of these questions? GO GET ONE! That’s right, visit your potential competitor – the biggest and the baddest – and get a car title loan; get a collateralized loan.

Go through the loan process. Get copies of EVERYTHING. Ask the clerk open ended questions.

What? You’re telling me you don’t have the title to a vehicle so you can’t do this “mystery shopping?” Then take your mom, your sister, your best friend… take someone with a title to their vehicle and MAKE THIS HAPPEN! Borrow your Dad’s watch or go beg grandma to smooth this bump to achieve your dreams. Beg if you must!

If you can’t pull-off this simple exercise, STOP NOW AND GET YOURSELF A JOB. You don’t have what it takes to make serious money in the car title loan industry much less providing collateralized loans to borrowers by the tens of thousands!

Want to learn more?
Visit http://www.AutomobilePawn.com [Car Title]

Visit http://paydayloanindustryblog.com/pawn/ [Pawn & Collateralized Loans]

Email: Jer@PaydayLoanIndustryBlog.com
PUT CAR TITLE or COLLATERALIZED in the subject in YOUR EMAIL!

It’s time for action. Focus on the one or two things you need to do today. Daily achievement will result in all the other dogs tied to your sled having their noses up your ass rather than vice versa. Complements? Complaints? Ideas? jer@trihouseconsulting.com

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Operation Choke Point-Payday Loans-H.R. 4986

By | Jul 22, 2014

Watch Rep. Blaine Luetkemeyer discuss H.R. 4986, the End Operation Choke Point Act. The bill is designed to put an end to government attempts to shut down entire portions of the private sector based on what it deems to be unacceptable. This includes payday loans, small dollar loans, guns, debt collectors, MLM industries, car title lending

Rep. Leutkemeyer makes a great deal of sense by defending legal businesses and their continued access to banking. Banks should not be put in a position of determining which industries fail and which ones survive. Additionally, digital technologies are disrupting traditional banking in ways we cannot comprehend.
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“ACE used false threats, intimidation, and harassing calls to bully payday borrowers into a cycle of debt,” said CFPB Director Richard Cordray.

By | Jul 10, 2014
Ace Payday Loan Training Manual

Ace Payday Loan Training Manual

WASHINGTON, D.C. — Today the Consumer Financial Protection Bureau (CFPB) took enforcement action against ACE Cash Express, one of the largest payday lenders in the United States, for pushing payday borrowers into a cycle of debt. The CFPB found that ACE used illegal debt collection tactics – including harassment and false threats of lawsuits or criminal prosecution – to pressure overdue borrowers into taking out additional loans they could not afford. ACE will provide $5 million in refunds and pay a $5 million penalty for these violations.

“ACE used false threats, intimidation, and harassing calls to bully payday borrowers into a cycle of debt,” said CFPB Director Richard Cordray. “This culture of coercion drained millions of dollars from cash-strapped consumers who had few options to fight back. The CFPB was created to stand up for consumers and today we are taking action to put an end to this illegal, predatory behavior.”

ACE is a financial services company headquartered in Irving, Texas. The company offers payday loans, check-cashing services, title loans, installment loans, and other consumer financial products and services. ACE offers the loans online and at many of its 1,500 retail storefronts. The storefronts are located in 36 states and the District of Columbia.

Payday loans are often described as a way for consumers to bridge a cash-flow shortage between paychecks or other income. They are usually expensive, small-dollar loans that must be repaid in full in a short period of time. A March 2014 CFPB study found that four out of five payday loans are rolled over or renewed within 14 days. It also found that the majority of all payday loans are made to borrowers who renew their loans so many times that they end up paying more in fees than the amount of money they originally borrowed.

The CFPB has authority to oversee the payday loan market and began supervising payday lenders in January 2012. Today’s action resulted from a CFPB examination, which the Bureau conducted in coordination with the Texas Office of Consumer Credit Commissioner, and subsequent enforcement investigation.

Illegal Debt Collection Threats and Harassment

The CFPB found that ACE used unfair, deceptive, and abusive practices to collect consumer debts, both when collecting its own debt and when using third-party debt collectors to collect its debts. The Bureau found that ACE collectors engaged in a number of aggressive and unlawful collections practices, including:

· Threatening to sue or criminally prosecute: ACE debt collectors led consumers to believe that they would be sued or subject to criminal prosecution if they did not make payments. Collectors would use legal jargon in calls to consumers, such as telling a consumer he could be subject to “immediate proceedings based on the law” even though ACE did not actually sue consumers or attempt to bring criminal charges against them for non-payment of debts.

· Threatening to charge extra fees and report consumers to credit reporting agencies: As a matter of corporate policy, ACE’s debt collectors, whether in-house or third-party, cannot charge collection fees and cannot report non-payment to credit reporting agencies. The collectors, however, told consumers all of these would occur or were possible.

· Harassing consumers with collection calls: Some ACE in-house and third-party collectors abused and harassed consumers by making an excessive number of collection calls. In some of these cases, ACE repeatedly called the consumers’ employers and relatives and shared the details of the debt.

Pressured into Payday Cycle of Debt

The Bureau found that ACE used these illegal debt collection tactics to create a false sense of urgency to lure overdue borrowers into payday debt traps. ACE would encourage overdue borrowers to temporarily pay off their loans and then quickly re-borrow from ACE. Even after consumers explained to ACE that they could not afford to repay the loan, ACE would continue to pressure them into taking on more debt. Borrowers would pay new fees each time they took out another payday loan from ACE. The Bureau found that ACE’s creation of the false sense of urgency to get delinquent borrowers to take out more payday loans is abusive.

ACE’s 2011 training manual has a graphic illustrating this cycle of debt. According to the graphic, consumers begin by applying to ACE for a loan, which ACE approves. Next, if the consumer “exhausts the cash and does not have the ability to pay,” ACE “contacts the customer for payment or offers the option to refinance or extend the loan.” Then, when the consumer “does not make a payment and the account enters collections,” the cycle starts all over again—with the formerly overdue borrower applying for another payday loan.

The ACE cycle-of-debt training manual graphic is available at: http://files.consumerfinance.gov/f/201407_cfpb_graphic_ace-cash-express-loan-process.pdf

Enforcement Action

Under the Dodd-Frank Wall Street Reform and Consumer Protection Act, the CFPB has the authority to take action against institutions engaging in unfair, deceptive, or abusive practices. The CFPB’s order requires ACE to take the following actions:

· Pay $5 million in consumer refunds: ACE must provide $5 million in refunds to the overdue borrowers harmed by the illegal debt collection tactics during the period covered by the order. These borrowers will receive a refund of their payments to ACE, including fees and finance charges. ACE consumers will be contacted by a third-party settlement administrator about how to make a claim for a refund.

· End illegal debt collection threats and harassment: The order requires ACE to ensure that it will not engage in unfair and deceptive collections practices. Those practices include, but are not limited to, disclosing debts to unauthorized third parties; directly contacting consumers who are represented by an attorney; and falsely threatening to sue consumers, report to credit bureaus, or add collection fees.

· Stop pressuring consumers into cycles of debt: ACE’s collectors will no longer pressure delinquent borrowers to pay off a loan and then quickly take out a new loan from ACE. The Consent Order explicitly states that ACE may not use any abusive tactics.

· Pay a $5 million fine: ACE will make a $5 million penalty payment to the CFPB’s Civil Penalty Fund.

The full text of the Bureau’s Consent Order is available at: http://files.consumerfinance.gov/f/201407_cfpb_consent-order_ace-cash-express.pdf

Jer@TrihouseConsulting.com
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San Diego Payday Loan Store for Sale

By | Jul 8, 2014

Here’s a good opportunity for an internet lender to establish a brick-n-mortar, an existing lender to add the beautiful city of San Diego to their portfolio or for a new small dollar loan entrepreneur to buy an established business.

  • Located in San Diego, California.
  • Monthly rent is $3500. Seller willing to subsidize rent down to $3000/mo with 4% increase per year.
  • The space is approximately 1850 square feet. The lease terms can be 3 years plus with options.
  • Seller invested $70K in improvements
  • Zoned for payday/check cashing/pawn/tax/insurance
  • Owner is motivated; wants out today.
  • Price? $35K – $40K range
  • Want more info? Shoot an email to Jer@TrihouseConsulting.com INCLUDE YOUR CONTACT INFO with Subject: San Diego
San Diego Payday Loan Store for Sale

San Diego Payday Loan Store for Sale

 

 

Interior of San Diego Payday Loan Store

Interior of San Diego Payday Loan Store


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