THE BLOG

21
Jan

Heads-Up: EZCORP Live Earnings Call Jan. 23rd

Jer,

Heads-up! Live over the Internet earnings call January 22, 2013 for EZCORP 3:30 Central Time:
http://www.videonewswire.com/event.asp?id=91507

“EZCORP is a leading provider of instant cash solutions for consumers employing approximately 7,200 teammates and operating over 1,275 Company-operated pawn, buy/sell and personal financial services locations in the U.S., Mexico and Canada.  We provide a variety of instant cash solutions, including pawn loans, consumer loans and fee-based credit services to customers seeking loans. At our pawn and buy/sell stores, we also sell merchandise, primarily collateral forfeited from pawn lending operations and used merchandise purchased from customers.”

Jer~Trihouse 702-208-6736
Knowledge Store:
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17
Jan

Payday Loan and Car Title Pledge Loans: Unintended Consequences of Access to Credit

There is a strong argument for advising regulators to avoid restricting consumer access to credit alternatives. A piece written by Todd Zywicki and Robert Sarvis  at Mercatus.org does a good job of championing a multitude of financial products including car title “pledge” loans and payday loans. Here’s a portion:

“Well-intentioned legislators and regulators assume that restricting particular forms of credit will lead to fewer bad financial outcomes. But this is misguided and can lead to worse, not better, outcomes. Restrictions on particular types of consumer credit don’t necessarily induce consumers to refrain from unnecessary purchases or to avoid bad out- comes. Consumers resort to these financing options because they have pressing needs. So repressing one form of consumer credit will often only lead to a shift to other new or existing forms of consumer credit offered on less favorable terms for consumers. Restrictions on payday lenders might simply turn them into title lenders, as they seek to make up for caps on fees and interest rates by demanding collateral to reduce losses in the event of default, or push consumers to online payday lenders, which often charge higher rates than brick-and-mortar payday lenders. The ad hoc regulatory program of restricting disapproved forms of consumer credit thus has a whack-a- mole nature to it; limiting one form simply spawns a new one that avoids existing regulations.”

Read the entire article here: http://mercatus.org/publication/pitfalls-regulating-consumer-credit

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16
Jan

Payday Loan Companies Using Facebook and Twitter

There’s an interesting piece at American Banker discussing the merits of payday loan companies using consumer social media footprints for credit risk analysis.

Does your small dollar loan company incorporate your applicant’s Facebook, Twitter, Google+… tracks? Can you offer a reward for “friending” your company? For a favorable Yelp review?

American Banker quotes Ken Rees, CEO at Think Finance, “That while analysis of customers’ social networking activity is more useful for fraud detection, there are uses for credit risk. One simple check is finding out if a borrower actually has a social media footprint. Facebook and Twitter have become so ubiquitous that not having accounts can set off a red flag. ‘It’s better to have an online ID. Not having one is like walking into a brick and mortar store without a driver’s license,’ he says.”
American Banker full article

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15
Jan

Banks Getting More Heat on Payday Loan Lending

Banks, just like our industry, are getting more heat for attempting to offer payday loan products. From Richard Bluementhal, CT Senator:

“In the letter, the senators urge the Federal Reserve, FDIC and Comptroller of the Currency to stop federally regulated banks from engaging in payday lending and to prevent further expansion of payday lending before this predatory practice spreads”

Read the piece in it’s entirety here: Senators Request Federally Chartered Banks to stop Offering Payday Loans

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