Category: payday loan collections

03
Jan

Payday Loan Collections

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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05
Jan

Example Payday Loan Partial Payment Agreement

Example Payday Loan Partial Payment Agreement

Do you need an example of a payday loan partial payment agreement; sometimes called a “Delayed Deposit Partial Payment Agreement?” [For this form and all the others you’ll need to successfully make money by lending money in the payday loan, installment and car title loan industry, get our “Bible.”]

Let’s face it. Payday loan lenders, car title loan lenders, installment loan lenders, crowd funding and peer-2-peer lenders  must often take a softer approach. Nothing wrong with this. But, get everything in writing AND spend the time necessary to explain the details to your borrower. Do not gloss over this! Invest the time with your borrower to make it clear what your borrower needs to do and what will occur if they fail to meet their obligation.

DELAYED DEPOSIT SERVICES PARTIAL PAYMENT AGREEMENT (CASH)

 

Licensee Name: __________________________      Customer Name _________________________

Address: ________________________________       Address:_______________________________

________________________________________       _______________________________________

Telephone: ______________________________       Telephone: _____________________________

 

Customer acknowledges:

  • I entered into a delayed deposit transaction with Licensee on __________________.
  • The check which I wrote in that transaction has been returned unpaid.
  • The returned check number is _________.
  • The amount of the returned check is $__________.
  • Licensee has added a penalty fee of $___________.
  • The total amount I owe to Licensee is $_________.
  • I wish to make partial payments in order to pay off the full amount I owe to Licensee.

 

Customer and Licensee agree as follows:

  • Customer will make payments to Licensee in satisfaction of the above debt in the minimum amount of $______.
  • Such payments will be made

___Weekly; ___Bi-weekly; ___Monthly; ___Other (Specify:_________________).

  • The payment is due on the _____ day of each ___________; ___Other (Specify:_____________).
  • The payments will be made in cash or by money order. Checks cannot be accepted.
  • Customer is entitled to a receipt for each payment.
  • Customer may pre-pay all or part of the above debt at any time.
  • If Customer makes payments according to this schedule, Licensee will not attempt other collection methods available to Licensee and will not re-present the check.
  • If Customer fails to make the first payment under this Agreement, Licensee is entitled to re-present the original check for payment. At its option, Licensee may re-present the check electronically within 7 business days of the missed payment date, and may separately electronically debit Customer’s account for the penalty fee.  Licensee may re-present the check more than once.  Customer will receive no additional notification of re-presentment(s) of the check.  Customer may incur costs from the financial institution each time the check is returned unpaid.
  • If Customer defaults, in whole or in part, under the Agreement, Licensee may utilize any collection methods available to it under the law. Customer may incur additional costs as a result.
  • Licensee will keep a record showing every payment received from Customer. Customer is entitled to a copy of such record during Licensee’s regular business hours, and a copy of this contract.
  • Upon successful completion of this contract, the original check will be returned to Customer.

 

____________________________________               __________________________________

Customer Signature                                                    Licensee Representative Signature

 

Date: _______________________________              Date:_____________________________

 

                                                                                                  

                                                                                                          DDS Partial Payments Form/Cash

DELAYED DEPOSIT SERVICES PARTIAL PAYMENT AGREEMENT (ACH)

 

Licensee Name: __________________________      Customer Name _________________________

Address: ________________________________       Address:_______________________________

________________________________________       _______________________________________

Telephone: ______________________________       Telephone: _____________________________

 

Customer acknowledges:

  • I entered into a delayed deposit transaction with Licensee on __________________.
  • The check which I wrote in that transaction has been returned unpaid.
  • The returned check number is _________.
  • The amount of the returned check is $__________.
  • Licensee has added a penalty fee of $___________.
  • The total amount I owe to Licensee is $_________.
  • I wish to make partial payments in order to pay off the full amount I owe to Licensee.
How to start a payday loan business

Start a PDL Company

[Want this form for your own use? Need it as a PDF or Word document? Email Jer@TrihouseConsulting.com or invest in our “Bible.” Both our payday loan and our car title loan Manuals include a multitude of aldditional forms, docs, check lists and more.]

Customer and Licensee agree as follows:

  • In satisfaction of the above debt, Customer authorizes Licensee to electronically debit the account on which the check was written. Licensee will use an Automated Clearing House (ACH) method, which is a nationwide electronic funds transfer system.
  • Licensee will electronically debit the account in the amount of $______.
  • Licensee will electronically debit such amount:

___ Weekly; ___Bi-weekly; ___Monthly; ___Other (Specify:_________________).

  • The electronic debit will occur on the _____ day of each ___________; ___Other (Specify:_____________).
  • Customer may pre-pay all, or if electronic debits have been made, the remaining portion of the above debt, in cash at any time. If Customer satisfies the full amount of the debt, this authorization for electronic debiting is immediately revoked.
  • If Customer makes payments according to this schedule, Licensee will not attempt other collection methods available to Licensee and will not re-present the check.
  • Customer will receive no additional notification of these electronic debits from Licensee. Customer may incur costs from the financial institution if any electronic debit is refused for insufficient funds.
  • If Customer defaults, in whole or in part, under the Agreement, or revokes this authorization for electronic debiting by giving written notice to Licensee at the above address, Licensee may utilize any collection methods available to it under the law. Customer may incur additional costs as a result.
  • Licensee will keep a record showing every payment received from Customer. Customer is entitled to a copy of such record during Licensee’s regular business hours, and a copy of this contract.
  • Upon successful completion of this contract, the original check will be returned to Customer.

 

____________________________________               __________________________________

Customer Signature                                                    Licensee Representative Signature

 

Date: _______________________________              Date:_____________________________

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10
Apr

Illegal Payday Loan Company Collects Phantom Debts-FTC

FTC, Illinois Attorney General Halt Chicago Area Operation Charged With Illegally Pressuring Consumers to Pay ‘Phantom’ Debts

The Federal Trade Commission and the Illinois Attorney General’s Office have obtained a court order temporarily halting a fake debt collection scam located in Aurora, Illinois, a western suburb of Chicago. The defendants are charged with illegally using threats and intimidation tactics to coerce consumers to pay payday loan debts they either did not owe, or did not owe to the defendants.

The FTC’s case against K.I.P., LLC, Charles Dickey, and Chantelle Dickey is the agency’s seventh ‘phantom’ debt collector matter.

“This company scared and tricked people into paying debts they didn’t owe,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “Working with terrific partners like the Illinois Attorney General, we will keep going after phantom debt scams like this one and shutting them down.”

“The defendants have threatened and intimidated their way into stealing hundreds of thousands of dollars from unsuspecting people all across the country,” Illinois Attorney General Lisa Madigan said. “Between our two offices, we have hundreds of complaints. It is clear they must be stopped.”

According to the complaint, since at least 2010, the defendants used a host of business names to target consumers who obtained or applied for payday or other short-term loans, pressuring them into paying debts that they either did not owe or that the defendants had no authority to collect.

Often armed with sensitive financial information, the defendants would call consumers and demand immediate payment for payday loans that were supposedly delinquent. To pressure consumers to pay, the defendants threatened that they would:

Garnish consumers’ wages;
Suspend or revoke their drivers’ licenses;
Have them arrested or imprisoned; or
File a lawsuit against them.
In response to the defendants’ repeated calls and alleged threats, many consumers paid the debts, even though they may not have owed them, because they believed the defendants would follow through on their threats or they simply wanted to end the harassing phone calls.

The complaint also charges the defendants with failing to provide consumers with a notice containing: 1) the amount of the debt; 2) the name of the creditor to whom the debt is owed; 3) a statement that unless the consumer disputes the debt, it will be assumed to be valid; 4) a statement that if the consumer does dispute the debt in writing, the defendants will verify the debt is correct; and 5) a statement that upon the consumer’s written request, the defendants will provide the consumer with the name and address of the original creditor if different from the current creditor.

Finally, the complaint charges that the defendants: called consumers at work when they knew such calls were prohibited by consumers’ employers; harassed and abused consumers; used obscene or profane language; and called consumers repeatedly with the intent of annoying or abusing them.

The complaint also alleges that the defendants violated the Illinois Consumer Fraud and Deceptive Business Practices Act and the Illinois Collection Agency Act, and that the defendants are not licensed debt collectors as required by Illinois law.

Defendants named in the case include: K.I.P., LLC; Charles Dickey, individually and as an owner, member, or managing member of K.I.P., LLC, and also doing business as (d/b/a) Ezell Williams and Associates, Corp.; Ezell Williams, LLC; Excel Receivables, Corp.; Second Chance Financial Credit, Corp.; Second Chance Financial, LLC; Payday Loan Recovery Group, LLC; Payday Loan Recovery Group; Payday Loan Recovery; International Recovery Services, LLC; International Recovery Services; and D&R Recovery. The complaint also names Chantelle Dickey, also known as Chantelle Rudd and Chantelle Williams, as an individual and as a manager of K.I.P.

The FTC and the Illinois Attorney General’s Office appreciate the Aurora Police Department, North Aurora Police Department, Better Business Bureau of Chicago and Northern Illinois, and the U.S. Postal Inspection Service Chicago Division for their valuable assistance with this matter.

Note: Original FTC Press Release

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15
Mar

1 Simple Payday Loan Collection Tactic

“We’ve been taught to collect only one way. Heavy demand. Lots of thunder. But before you start firing all your collection bullets, how about a different approach?” Steve Hodgdon, founder of Modern Asset Management, reminds all of us to not overly complicate the task of getting borrowers to pay us.

Watch Steve’s short video and put some serious cash in your pocket. [After watching Steve’s collection video, READ THIS!]

The Best Collection Question. The single, best question to get your borrower to TALK to you. Let me know what you think.

Collections driving you nuts? Reach out to Steve.
Steve Hodgdon
President
Modern Asset Management, Inc.
1-415-596-2415 cell
1-800-617-3680 ext 801

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08
Apr

Soft-Collections-vs-Silent-Collections-Payday-and-Car-Title

What Keeps You Up at Night?

The CFPB? That State AG’s are after you? Is it the Legislators regulating you out of business? Where do all these issues start from? Consumer complaints. Does every loan you make turn into a complaint? No, complaints only come from consumers who don’t repay the loan on time.

I’m a bill collector. I’ve been doing this for a while too. Started collecting department store checks in Christmas of 1980 – 32 years as a collector, lender, debt buyer, and 17 of those operating the squeaky cleanest collection agency ever.

Guest Post by Steve Hodgdon . Help? Explore? Email Steve!

Short of just forgiving every loan, you’re going to have use some kind of collection method. Pick your poison, outsourcing, calling yourself or selling the accounts to recoup some losses. You’ve already learned they all have their negatives.

Silent Collections

About 3 years after buying my first agency, I had a breakthrough. Not a breakdown, a breakthrough, an epiphany. Clients viewed me as a necessary evil. I was “Guido”, the enforcer, the bad guy. They always took the debtor’s side, even though it was their money! How dare they! So, I turned my techniques upside down. Being a collector is being a salesman. Nothing more. It’s my job to sell you, the borrower, on the benefits of paying your bill. So, here’s your first take away:

  • The money is in the first call. First contact is the best contact. Take your time and “close the sale”.
  • EVERYBODY wants to be heard. Building empathy and recognizing you’re talking to another human being with the same kinds of problems you’ve faced will pay off for both of you. Don’t sympathize; just make sure they know you LISTENED.
  • What’s in it for them? We’re all motivated this way. Why should they pay you? What do you have to give them in return? Every collector should have a positive and negative list to work from.

I promised my agency clients that there would be no complaints – PERIOD. I worked for charity hospitals in some of the toughest, poverty stricken areas. You and I were neighbors! The same consumer who borrowed money from you paid me first. No doubt about it. How? Here’s your 2nd takeaway:

  • My collectors LOVED their job. Careful hiring and lots of hand holding for new hires. We were practically a cult. Folks would leave for greener pastures and come right back.
  • We built a team. We all had each others’ backs. They knew they could count on me.
  • There were achievable goals, public recognition, and contests all the time.
  • Commission Commission Commission. Pay them and they’ll stay.

You should check under the hood… BEFORE the CFPB does!

The regulatory mood is, and always will be, pro-consumer. Look at the FTC settlements over the past year. If AMEX settles for $85 million among many others, seems likely that the door is wide open for more actions.

State regulators and consumer attorneys take their lead from the CFPB and FTC. Federal sanctions play really well in State courts. There’s no need to fear the CFPB if you’re doing things right. You can stop living on the edge and sleep better with some simple steps. Takeaway #3:

  • Google your agency partners.. Do they dominate the debtor boards?
  • Conduct a mini audit. Internally and externally. Listen to 10 calls on paying accounts to start. What, you can’t listen to call recordings? No time? I’ll audit for you.
  • Go to www.webrecon.com. It’s a great database of FDCPA lawsuits. Search your vendors. I scrub every portfolio I buy through this to identify known litigious debtors.
  • Add a layer of protection. Update your 3rd party contracts to include TCPA, GLB, and PCI compliance for starters.
  • Is your complaint resolution process geared toward getting customers back or collecting money? Ask me how client satisfaction leads to better collections, for free!

Ask yourself this – Would you let the agency call customers in YOUR NAME? Do they present your values? Could what they say to a customer be said in person? Is the collector hiding behind an alias, at an untraceable number, with no published address?

Doesn’t Anybody Like Us?

Reputation management can be more than damage control. Remember, CFPB’s view is that you are liable for bad acts performed by agencies. Let’s get ahead of the regulators.

If all your practices treat consumers as YOUR CUSTOMERS, even if they didn’t pay, all these problems go away. I know from personal experience you can generate thank you letters from consumers and improve liquidity at the same time.

Caveat Venditor – “Seller Beware”

Debt buyers should be vetted through the steps above and more. It’s the Wild, Wild West out there. You want to know what happens to your customer post sale. Liability and reputation damage continue forever.

The difference in price between an ethical, insured, licensed buyer and a cowboy is zero. Market price is market price. Choose buyers you’d let coach your kids soccer team.

You can improve your valuation by documenting and adhering to good underwriting rules. As a buyer of payday loans, my hot buttons are frauds and excessive rollovers. Three reference numbers will boost your valuation 10%.

If you do a good job underwriting then the charge-offs will perform better. That leads to a good reputation in the buyer community and a higher price for you. When we take your product to market, telling the story of your excellent verification procedures adds value.

All good buyers want good sellers. Our investors are spending $10,000 to $1,000,000 for good portfolios. We analyze data and get competitive bids in days, not weeks

I personally oversaw agency management of 500,000 payday loans in 2012. Nothing is better than an “in the trenches” knowledge of the consumer, the lender, and the regulatory landscape.

Putting It All Together – Revenue Cycle Management

  • Tune up internal practices. Are you the best payday shop to work at in your market? Let’s start the party!

Examine value add of 1st party outsourcing. Can it be better, faster, cheaper and not degrade your selling value?

  • Set a high bar for agency and buyer qualification. Do business with the best.
  • And, of course, use an experienced guide to get you home safe and sound. In 30+ years, I’ve seen and done everything in the A/R spectrum. Knowing where to look for problems gets you to the solution faster.

Fluff up that pillow and worry about something else.

Need help with your collections? Advice? Counsel? Shoot an email to Steve Hodgdon

What do YOU think? Leave a comment! What’s YOUR biggest challenge TODAY? What does your Team need help with? Jer@TrihouseConsulting.com

 

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