Tribe Sovereign Status at Risk? WikiLeaks?

By | Jan 12, 2017

By: Jer Ayles at Trihouse Consulting. 702-208-6736

There’s an interesting “Conversation” written by Matthew Fletcher Professor of Law & Director of the Indigenous Law & Policy Center, Michigan State University.

His thesis is that a negative outcome of a personal injury case under review by the Supreme Court could expose Indian tribes to new legal risks and put their “sovereign immunity” status  in jeopardy.

Certainly, as a direct lender, a consultant to tribes and a conduit for capital infusions into tribal business enterprises, this topic and it’s outcome are of great interest to both me and my clients.

So, first my thoughts followed by a link to Professor Fletcher.

So long as the sovereign tribe maintains a forum for litigants to bring suit and be fairly adjudicated, I see no issues here. It’s as if a limo driver employed by the French Embassy were in a similar circumstance. There are legal avenues for “forum shopping” lawyers in similar circumstances. Tribal businesses have access to insurance as do other entities and sovereign nations. Sovereign tribes do not intentionally shirk their responsibilities. However, having counseled and represented tribes in collaborations with online payday loan and installment loan management groups and capital infusions for several years, I have witnessed instances in which the resources of the tribes have been stretched. This “friction” is not due to a reluctance by the tribes to negotiate fair and reasonable alliances but rather a lack of experience in such business endeavors because Big Brother in D.C. denies, delays and inhibits their financial success. Success that would enable the tribe to fund their own businesses, build infrastructure including medical care, education, housing… and GET OFF THE GOVERNMENT TIT as they prefer to do!

Jer Trihouse Consulting

Jer Trihouse

Finally, having equity in payday loan and installment loan stores plus my own capital at work via online lending portfolios and continuing to serve payday lenders, installment loan lenders, car title loan lenders, investors… in a consulting capacity, I certainly understand why there are those in our “micro-lending/alternative lending” industry who would like nothing better than for the tribe lending model to fall off the face of the earth. Why? Because state licensed lenders perceive an online tribal lender as having the advantage of zero regulatory, compliance, auditing, etc. oversite. Well, as President Trump often says,”WRONG!” I will not dwell on all the regulatory hoops and convolutions tribal lenders must comply with at this time but I assure you dear reader that THERE ARE MANY.

Ultimately, there is room in the business of lending money for all players and licensing models. Whether you’re a small mom-and-pop with a tiny portfolio and just a few core customers or a publicly traded behemoth like Enova, there is, and will continue to be, demand for your inventory: MONEY!

Zero lenders in the business of lending money to consumers and small business for the long-term will embrace the abuse of their customers. Zero lenders will risk the wrath of the FED’s, the State, their peers and MOST OF  ALL their friends and family members; their community.

Of course there are “outliers.” They exist in all industries including the media and in government. But eventually, as we have all witnessed during this LONG election cycle, Julian Assange will get the DOPE on the bad guys! And the results ain’t pretty!

So… on to Professor Fletcher and “The Conversation.

Comment? Reach out! Help? Let me know! Haters? Bring it on… I’ve been at this awhile. Meanwhile, 2017 is proving to be ONE HELL OF AN OPPORTUNITY!

Signing off: Jer Trihouse. 702-208-6736

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Texas OCCC Payday Loan License Expires?

By | Dec 28, 2016

Texas OCCC Regulated Lender Licenses Expire at Midnight on 12/31/16.

tx-occc-logoFor those of us offering loans in Texas, here is a copy of the alert we received from the Texas OCCC:

Good afternoon,
This is a final reminder that regulated lender license renewal is now open online via ALECS and must be renewed by December 31st.
Licenses will expire at midnight on the 31st. The fee to reinstate a canceled license is an additional $1000.

To renew the license online , you can follow the steps below:
1. Log in to ALECS and from the left hand menu click on “Manage My Business.”
2. Under the License heading, click “Renew License” then from the drop down menu at the top, select Regulated Lender.
3. Select the licenses you would like to renew by checking the box next to the license number, or click the box under “Select All” to choose all licenses.
4. Check the box at the bottom of the page to confirm renewal, then click “License Renewal”
5. Select payment type, enter payment information and follow the prompts.
The fee to renew an ACTIVE license if $510. The fee to renew an INACTIVE license is $250. Volume fees are based on 2014 Annual Report data.
To verify that your license has been renewed you can go to your Dashboard and click the “My Recent Activity” tab.

After following these steps, if you continue to have questions or problems, feel free to call us at 512-936-7605.
PLEASE HAVE YOUR MASTER FILE OR LICENSE NUMBER AVAILABLE.
Licenses expire at midnight on December 31st.
Thank you and have a good day!
Licensing Department
Office of the Consumer Credit Commissioner
512-936-7605
https://alecs.occc.texas.gov
www.occc.texas.gov

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CFPB Under Attack Again by PDL, Banks, Credit Union Trade Groups

By | Dec 8, 2016

Congress Attacks All Planned CFPB Rules

Jer Trihouse

Jer Trihouse

By: Jer Ayles-Trihouse. Financial, fintech, banking and credit union trade groups are storming Congress to  repeal all upcoming CFPB [Consumer Financial Protection Bureau] rules governing arbitration, payday lending, debt collection and prepaid cards by using its authority under the Congressional Review Act.

All of us in the payday loan, installment loan, short term loan and car title loan industry are fully aware that the CFPB is about to finalize several rules, including arbitration, small dollar, third-party debt collection prepaid cards… having a deleterious and ultimate choke hold on consumers, the economy, and balance sheet lenders.

It’s time for Congress and President Trump to implement their authority under the Congressional Review Act (CRA) to blow-up these threats by the CFPB!

Meanwhile, we’re all forced to spend HUGE amounts of MONEY and Time dealing with CFPB rules that will likely NEVER SEE THE LIGHT OF DAY!

The structure of the CFPB has been determined to be unconstitutional by a federal D.C. Court!

So, let’s get back to serving the desires of the millions of borrowers who VOTE for payday loans, title loans, small dollar short term loans demonstrated by their DAILY USE OF OUR FINANCIAL PRODUCTS, and allow us to continue to develop new loan products at reduced rates and fees for our clients.

The CFPB is already a dinosaur that stifles competition, destroys consumer ability to make choices that fit their own unique financial situation and puts millions of dollars in the pockets of lawyers, consultants and lobbyists RATHER than allowing balance sheet lenders to focus on providing outstanding service at fair rates!

The future of our small dollar, short term lending industry has not looked this bright in a LONG TIME. There is still tremendous opportunity for “mom-and-pops,” venture capitalists, hedge funds, and vendors such as loan management softeare companies, ACH/ICL/DEBIT providers, tribes, money transfer system conduits… to enter and SERIOUSLY PROSPER in our industry!

Excited? Wnat to learn more? Need help? Got a question? Jer@TrihouseConsulting.com 702-208-6736

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 and we are not jerks!

Now go make some $$. Jer Trihouse

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Bank Accounts for Payday Loan Lenders

By | Nov 28, 2016
By: Jer Ayler at Trihouse Consulting

Payday loan lenders and micro-lenders continue to suffer from “bank discontinuance” issues as a result of “Operation Choke Point” launched by the Obama administration in August 2013.

The Community Financial Services Association of America (CFSA) and Advance America said ” a preliminary injunction was needed to end the back-room campaign of coercion by the Federal Reserve, the Federal Deposit Insurance Corp, the Office of the Comptroller of the Currency, the CFPB [ruled unconstitutional by a D.C. Court]  and competitors masking themselves as so-called consumer protectionists.”

U.S. regulators are collaborating in an attempt to stop banks from offering banking services to micro-lenders in an effort to force consumers in need of emergency funding to beg, borrrow or steal when facing financial stress.

Nearly 50% of U.S. residents are unable to access $400 cash [Link to Federal Report] when faced with the need to fix their car to continue working, purchase a medical prescription for their child or a family member, turn on their heating or electricity…

Payday lenders, istallment lenders and additional small dollar lenders requested a federal judge for immediate relief! 

Jer Ayles-Ayler Trihouse Consulting

Jer TrihouseConsulting

The survival of mom and pop loan businesses is at stake!

It’s rumored that the big, multi-billion dollar online Fintech lending companies – SOFI, Lending Club, Prosper, Marcus, Avant, Enova… are adding additional pressure to wipe-out the small dollar lending industry; including the small independent store owners.

Advance America said its own situation became dire after five banks decided in the last month to cut ties, including a 14-year relationship with U.S. Bancorp, “putting it on the verge of being unable to maintain a bank account.”

The small lender national association injunction requests the federal court to “order the agencies to cease and desist from harming the reputations of Advance America and other CFSA members; from applying pressure on banks, encouraging them to terminate relationships with the banks and other CFSA members; denying CFSA members access to financial services; and from depriving members ability to pursue business.”

Instead of eliminating the “bad apples” of the payday industry, the agencies have “set about to choke off the life-sustaining financial oxygen that the entire industry, and millions of under-banked individuals, depend on.”

The CEO for CFSA, Dennis Shaul, stated that the results of Operation Choke Point for the payday loan, installment loan and micro-lending industry has been “dire.”

Mr. Shaul says that U.S. Bank has dropped its affiliation with several members, including Advance America, allegedly putting the company “on the verge” of being unable to maintain a bank account.

Another example by CFSA is thata smaller payday lender, DollarSmart Money Centers,  was forced to close when it lost all its banking services.

Here’s a link to the Injunction by the CFSA vs. the FDIC

Here’s a link to the Original Request

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Payday and Title Loan Requirements

By | Oct 18, 2016

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

Jer Trihouse Payday Loan Industry ResourcesThis 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?

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