The Business of Lending Money: Tricks & Scams Just Plain Stupid!

By | Jan 15, 2018

Attention payday, car title, signature, student, line-of-credit and yes, even Bitcoin lenders!

Do not play games with the FTC! They are “dialing for dollars.”

Opportunities to help US consumers abound! Consider just this one telling statistic: “About 46 percent of Americans said they did not have enough money to cover a $400 emergency expense. Instead, they would have to put it on a credit card and pay it off over time, borrow from friends or family, or simply not cover it at all.”

So… demand for our loan products continues unabated! However, that’s not an excuse for us to get sloppy with our marketing, customer on-boarding or transparency and disclosures.

This may be a new year BUT there still remains a lot of “cowboys” in our vertical that don’t have a clue about the risks they’re exposing themselves to when they screw with the FED’s.

Sure, the CFPB is unraveling thanks to President Trump. And as a result, all of us – including bankers and wall street – are getting some well deserved breathing room. Turns out a little less regulation has proven to give our economy a big kick in the pants; up she goes!

Still, the stupid stuff being done by a small group of knuckleheads in our industry continues. Here are links to just a couple of boners…

  • Fake payday loan debt: Link
  • $1.3B Fine against payday loan lender: Link
  • Lead generator fined $21M: Link
  • Think Finance debt collection fakes: Link
  • There are OH SO MANY MORE…

FTC staff are on an hourly hunt for lenders and a multitude of other industry players who make offers on their websites that cause consumer misunderstandings and products that default to a consumer “opt-in” while failing to disclose fees and ongoing relationships.

The FTC matter referenced below came to light in 2009. However, the supposed violations occurred back in 2006 & 2007. Imagine? Some tactic your company employed more than 10 years ago comes back to haunt you?

So… you MAY BE getting away with your tricks and scams today, but does what you’re doing pass what I call in our training materials, “the sleep test?”

Do you really want to do crazy stuff today only to pay big time – a la Scott Tucker – tomorrow?

DON’T think lender website violations are no longer taking place. I see it every day as I put on my consulting cap and advise my clients while reviewing their marketing and website IP.

And if anything, the FTC, CFPB and every other government acronym out there CONTINUES to scrutinize your lead generation and lending website for  deficiencies that will result in your paying a large fine to the agency in order to avoid litigation; even when you are not breaking any laws. It’s often cheaper in the long run to just pay off the regulators than to fight them; even if they’re wrong about you!

Avoid trick tactics that force consumers into your products and services that do not CLEARLY and CONSPICUOUSLY disclose all fees, recurring charges, APR’s… and related products designed to appear to be free to the consumer but in actuality result in a payment of some kind by the consumer.

This best practice also applies to any partnerships/collaborations you enter into when your goal is to capture consumer personal data for later resale to a lead generator or other consumer service provider.

Look! Just play it straight!! Don’t do crazy stuff!!! Again, THERE IS NO NEED!

Don’t attempt to trick consumers into anything that fails to pass the sniff test. You don’t have to. If you’ve been reading my ramblings for ANY length of time, YOU KNOW that the last FDIC study revealed 52% of US households cannot get their hands on $400 cash in a pinch!  Yeah, I know that sounds NUTS but it’s true!!

So… you can be the lender! Disclose EVERYTHING. Make it simple and clear to every potential borrower exactly what you offer and how much it costs.

Your BEST tactic for building a successful consumer loan business is to provide OUTSTANDING 100% service focused on your CUSTOMER! There is ZERO need for you to hide ANYTHING!

PLUS, YOU’LL SLEEP AT NIGHT! And, that is worth a lot of $$$$$. Just ask Scott Tucker…

Oh, and by the way! Don’t trust your attorney!! Question everything. Record everything. Get it ALL in writing. Get a second and third opinion. Google “Cash Call” for examples. While were at it, don’t trust your consultant either  :-)

Now, read the FTC inquiry below and smile if you are not currently a target.

Payday Loan Debit Cards

Payday Loan Debit Cards

Payday Loan, Signature Loan Debit Cards

Payday Loan, Signature Loan Debit Cards

Get our “Make Money Lending Money to the Masses” here: “The Loan Bible”

How to Loan Money to the Masses!

How to Loan Money to the Masses!

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Payday Loan Collections

By | Jan 3, 2018

Got too many online payday loans defaulting?

Need help collecting on your online payday loans?

Online payday loan borrowers blowing you off? Payday Loan consumers refusing to pay you back on their loan or worse, disappearing on you?

How to screw your payday loan company

Payday Loan Help

Help is here! DO this!! The simple collection tactics still work!!!

Your payday loan, car title and small dollar loan borrowers move often. And, in hopes of receiving an IRS refund, they usually provide a forwarding address to the US Post Office.  (Payday loan borrowers should NEVER do this! Instead, they should use a PMB. If you’re a payday loan borrower, NEVER have your mail forwarded by the US Postal Service  :-)

Here’s a trick we online/store front payday loan lenders use to track you down. It’s the simple task of sending a letter or postcard to your last known address with the words, “RETURN SERVICE REQUESTED” printed on the front. If you’ve moved and you’re forwarding your mail, the post office will return your our payday loan lender’s letter to you with a sticker that reveals your new address!

And again, these folks OFTEN expect an IRS refund so they blindly make this blunder.

Want more tricks and tactics for avoiding paying back your payday loan lender? Get our Manual: “How to Loan Money to the Masses Profitably.” We thoroughly explain every aspect of starting and operating a payday loan, car title, signature loan and line of credit loan business.

How to Loan Money to the Masses!

How to Loan Money to the Masses!

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Bank Accounts for MSB’s, PDL, Check Cashers: “Bank Discontinuance Solved.”

By | Dec 20, 2017

A seriously experienced provider [20+ years in the industry] for MSB bank accounts, money transmitters, check cashers, ACH services, Pin Debit & EBT, ATM services… reached out to me today for introductions to our industry.

If you’ve ever received a 30 day “Bank Discontinuance Notice” from your bank you’ll recall that sick feeling in your gut! And if you really think “Operation Choke Point” is a thing of the past, I have a bridge for you to invest in; it’s a crypto digital bridge so you know it will 1000X in the next day or two  :-)

It’s likely you need a back-up Bank! Read on…

Here’s the nitty-gritty on this “Solution:”

For all MSB’s, Online Money Transmitters, Store Front Check Cashers, Storefront Money Transmitters…

  • Banking
  • RDC
  • Cash Services- Vaulting, Cash delivery, cash pickup
  • ACH
  • PIN debit and EBT
  • PINless debit
  • Credit card
  • ATM services
  • We provide services to large and small MSB’s in every state.

“We have a unique approach to the MSB market. In a typical Agent Model, the Agent controls the bank account(s) and remits to the Licensed MSB. We do the opposite. All depository accounts are in the Licensed MSB’s name and controlled by the Licensed MSB. The Licensed MSB simply pays the Agent their commissions. Our solution eliminates collections, improves cash flow and facilitates execution. For the Agents, this reduces their oversight and costs associated with the services provided by the licensed MSB.”

“Our solution mitigates the continuing assault and increasing regulatory pressure put on our industry daily by state and federal agencies by providing a level of compliance our industry has not experienced until today.”

“Improved MSB profitability: We have merchant processing solutions that eliminates fees for the merchant and passes them on to your customer.”

“Our solution magnifies the capabilities of storefronts by providing PINless debit and EBT. This enables your MSB to perform ATM type transactions at the cashier and add multiple methods for transactions.”

“We use state chartered banks who’s infrastructure is more compatible with MSB’s regulatory requirements.”

We have:

  • 2 banks that service all 50 States
  • 3 ACH providers
  • 3 PIN debit providers
  • 3 PINless debit providers
  • 2 Credit Card processing solutions

“We can set up concentration as well as settlement accounts, operating accounts, and depository accounts  for you, our valued client.”

“We API integrate to virtually any platform or POS.”

FOR A PRIVATE, DISCREET INTRODUCTION, GO HERE: “Click for Private Intro.” or Form Below.

Here’s a few Success Stories and Testimonials: 

700 location MSB with online money transmitter program.

We were able to secure Pin debit and EBT for the storefronts. This MSB did not previously have merchant processing at their locations prior to partnering up with our Team and our solution. They did have processing for their online money transmission program. We cut their costs by 40%. “XXX Inc. [redacted by Jer] is an experienced team that really understands the challenges we face as MSB’s. They not only secured payment processing for our online solution, but they cut our costs considerably. I searched for months for an affordable solution. Not only did I experience reduced costs but additionally I was able to add additional processing services to my store fronts where I did not have processing in the past.”

POS Provider:

“We are now a preferred vendor for certain POS systems used in the MSB space. We provide banking and processing to anyone they refer to us. XXX Inc. [redacted by Jer] is a single point of contact that supplies bank account and processing. XXX Inc. [redacted by Jer] are knowledgeable and efficient. I did not have to go back and forth with them to negotiate pricing. I got a great deal. They deserve rave reviews.”

MSB Agent program:

A 3200 location convenient store consortium. XXX Inc. [redacted by Jer] sets up bank accounts and  merchant processing for my convenient stores who are licensed MSB’s. We are in 32 states. XXX Inc. [redacted by Jer] provides a complete suite of services including Cash Pickup, Cash Delivery and Vaulting. We would recommend them to anyone for their banking solutions. This is traditional banking services and the banks are motivated to expand their MSB footprint.”

FOR A PRIVATE, DISCREET INTRODUCTION

Provide your contact info: online form.

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CFPB Employee Files Whistle Blower Charges: Payday Lender Ace Cash Express $10M Fine Bogus

By | Dec 14, 2017

A former CFPB examiner filed whistle blower charges against her employer, the CFPB, claiming she was terminated for refusing to falsify ACE Cash Express documents that resulted in a $10,000,000 fine levied against Ace!

The CFPB continues to be revealed as a reprehensible, rogue government organization whose management enabled their personal prejudices to attempt to destroy lawful, private and publicly traded businesses.

Cassandra Jackson, a former CFPB employee, filed documents strongly indicating she was fired for attempting to report that Ace Cash Express was adhering to CFPB rules and regulations.

It’s common knowledge that Ace Cash Express chose to pay the $10M fine rather than enter into costly, lengthy legal challenges against the one governmental agency having unfathomable deep pockets.

Ms. Jackson also asserts that she “encountered widespread racism and gender discrimination from management” and was eventually forced out due to an “incredibly hostile work environment.”

Jackson said her superiors at the CFPB insisted she falsify documents while she investigated Texas-based payday lender, Ace Cash Express.

Jackson said “she was asked to remove document evidence proving that Ace Cash Express adhered to CFPB regulations and her superiors insisted she write a report including findings she knew to be “false and fabricated.”

“I was specifically told to cite Ace Cash Express for a violation for which I had verified the company was in compliance and to state that Ace Cash Express did not provide, and that the CFPB did not receive, documents that would have satisfied the CFPB’s guidelines, despite having received that information from Ace Cash Express,” Jackson said.

Cassandra Jackson, a former CFPB employee, filed documents strongly indicating she was fired for attempting to report that Ace Cash Express was adhering to CFPB rules and regulations.

Cassandra Jackson, a former CFPB employee, filed documents strongly indicating she was fired for attempting to report that Ace Cash Express was adhering to CFPB rules and regulations.

 

CFPB Employee Files Whistle Blower Charges: Payday Lender Ace Cash Express $10M Fine Bogus

CFPB Employee Files Whistle Blower Charges: Payday Lender Ace Cash Express $10M Fine Bogus

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Payday Loan Borrowers: “Those People.”

By | Dec 11, 2017

Jer Trihouse Payday Loan Consulting

Jer

By: Jer Ayles. Banks do not want payday loan consumers as customers. It’s true that a bank’s cost of capital is low, but they do not service sub-$3000 signature loans efficiently enough to make serious profits. Frankly, they do not want to be bothered. Bankers are too busy funding Bitcoin ETF’s and ICO’s, even if only privately.

Simple minded bank employees just want to get the payday loan demographic out of their bank branches; “those people.” Anyone who has worked in a bank knows exactly what I’m saying.

Hell, even the CEO at Elevate, a publicly traded Internet lender that reinvented itself (100% payday loans to signature loans at 100%+ APR’s), said as much during a recent interview! Jer Trihouse.

The fact is, the CFPB is undergoing a major reconfiguration. Their unjustified attacks against lawful businesses are at an end. A “new sheriff is in town.” “The Trump administration now has a perfect opportunity to close the corrupt and ideologically partisan Consumer Financial Protection Bureau (CFPB).” Payday lenders and other former, or potential, CFPB targets have been partying: World Acceptance (NASDAQ:WRLD), OneMain Holdings (NYSE:OMF), Santander Consumer (NYSE:SC), PHH Corp. (NYSE:PHH), Enova (NYSE:ENVA), Ezcorp (NASDAQ:EZPW)…

Meanwhile, our payday loan business model has evolved into a 6 – 24 month amortized loan product. ABILITY TO PAY HAS ALWAYS BEEN OF GREAT IMPORTANCE TO LENDERS; in spite of the ridiculous assertions made by politicians, the media and regulators.

Payday loan, car title, signature loan lenders… WE WANT OUR MONEY BACK! We submit our customers application data through a multitude of highly specialized underwriting data bases and perform significant due-diligence on every loan applicant. Ultimately our decision to fund a loan is based on our assessment of our loan applicant’s ability to pay us back.

This transaction – in spite of what the naysayers peddle – really MUST BE a win-win for both the lender and the consumer!

Meanwhile, there are basically three arenas you, as an entrepreneur, can go to battle in today:

  • Lending money to the masses. Your inventory? MONEY. (Yes dollars – not fruit, not books, not goods…) Profits? 100%+ annually IF you don’t screw up.
  • Cannabis. We all know that, in spite of the FED’s Schedule 1 designation, serious money continues to be made with the marijuana plant. Until the IRS cancels 280E, it’s a challenge to make serious, bankable profits. I’ve attended the biggest Cannabis Business Convention in the world the past 4 years in a row and it would blow your mind to witness the bags of cash floating around “looking” for a bank so the owner can legitimize their revenue.
  • Cryptos. I admit it. I got my Coinbase account back in 2013 and bought my first Bitcoin at $325. Today, I own Bitcoin, Ethereum and Litecoin. I’m gambling on a few more today…

Lending Money: Now that the CFPB has been deconstructed by President Trump, the interest in launching and funding small dollar loan companies by venture capitalists, family offices, and entrepreneurs from all walks of life is through the roof! The business of lending money to the masses is back!!  You interested?

How to Loan Money to the Masses!

How to Loan Money to the Masses!

Revised and updated for 2018. “How to Start a Payday Loan, Signature Loan, Small Dollar Lending Business” by Trihouse Consulting.

green-buy-now

Jer-Trihouse

Schedule a call with Jer

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