Category: Trends & Tactics

17
May

FTC-More Great News for Payday Loan Customers, Lenders & Businesses in General

And the news just KEEPS ON GETTING BETTER for payday loan customers and their service providers.

A new leader at the FTC once defended payday lender AMG Services

In 2012, Mr. Smith was also part of the legal team that defended AMG Services, the payday lender founded by the Scott Tucker.

“It’s outrageous the F.T.C. would pick the lawyer for a criminally convicted racketeer’s payday loan company as consumer protection chief,” said Senator Elizabeth Warren, Democrat of Massachusetts, who opposed Mr. Smith’s selection.”

“The agency should pick someone with a track record of protecting consumers, not companies that cheat people.”

ISN’T LIFE GREAT  😛

Here’s a link to the full story: Payday Loan Lawyer Heads FTC.

PS: Need a bank account, ODFI or high risk merchant processing for your business? Start here: Banking & Processing

 

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09
May

Again: Why Banks, Credit Unions & So-Called Consumer Advocates Hate the Payday Loan Industry

There are SO many excellent points made in this article on The Hayride that it makes little sense to do anything more than quote a few statements and provide a direct link:

And as RedState has noted, those people have been joined by Google. The internet giant, as it turned out, made a $1.5 billion investment into LendingClub, the peer-to-peer loan site, back in 2013 and has been on board with the assault on payday lending ever since. Payday lenders are not allowed to advertise with any of Google’s products or platforms, which is both (1) somewhat understandable given that they’re now competitors with Google to an extent, and (2) also the kind of creepy monopolistic practice which argues strongly for someone coming along and treating Google as a trust needing to be broken up like Standard Oil and Ma Bell. But we digress.

The long and short of this is during the Obama administration, some of the key funders of the Democrat Party – most notably a man named Herb Sandler, who together with his wife Marion essentially broke Wachovia Bank by dumping $15 billion in bad subprime paper on them before the housing crisis hit and who skated away from that mess with enough money to bankroll something called the Center for Responsible Lending – declared war on the payday loan industry around 2014.

And Forbes noted another nonsensical provision tucked into the 1,690 pages of the CFPB rule…

  • Exemptions made for alternatives to payday lenders, including credit unions and community banks: If a lender derives less than 10% of its revenue from payday loans, it is exempt from some of the most onerous rules. This particular restriction is odd. Why is the hated payday lending product acceptable, so long as the institution making the loan only generates 9.99% of its revenue from such activities? Are high rates and frequent rollovers acceptable when coming from a bank? Or is there a presumption that payday lenders are evil while bankers are not?

This whole attack on an industry providing a service people obviously find valuable is beyond obnoxious. On its face it’s literally insane – who are the Center for Responsible Lending and the Louisiana Budget Project to tell people who they can and can’t borrow from? And if they do win the day, does that somehow mean people won’t find a way to do short-term borrowing? Of course not, which is why this is so pernicious – once that hole in the market is made, not accounting for the Cosa Nostra or local dope dealer entering into the less-salutary side of the business Google will be there to fill it, if the government in the person of the Post Office or some other failing agency is not. You’d either have a private or public monopoly on short-term lending instead of a competitive marketplace like you have now.

Given how well the government performed via Fannie and Freddie in bringing on the housing collapse, we know how well it would work taking over the payday loan industry. As for Google, given their Big Brother-style presence in your life as is do you really want one of their tentacles to emerge as a monopoly in short-term lending? Think about that – who’s creepier than Google or the government when it comes to your private information, particularly your financial information in the event you should have the kind of money problems necessitating a payday loan? You OK with that?

Questions? Help? Getting started lending money to the masses? Jer@PaydayLoanUniversity.com

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19
Jan

CFPB Drops Suit against 4 Payday Loan Tribes

The CFPB continues to capitulate in the payday loan space!

President Trump and acting director Mick Mulvaney have had an astoundingly positive influence on the outlook for payday lending and the upbeat environment for US households as well.

Previously, the CFPB received an astounding 1,000,000,000+ comments from US consumers “praying” for continued access to payday loans and other small dollar loan products.

These consumer comments in the form of electronic and hand written communications fell on deaf ears at the CFPB.

The CFPB ignored them. Additionally, the CFPB ignored the payday loan industry, their employees, vendors and pro-payday loan legislators throughout the USA – of whom there are many.

This continued attack of a lawful industry became further weakened today by the announcement that the CFPB is dropping all lawsuits against 4 payday loan tribal lenders!

The lenders are: GOLDEN VALLEY LENDING, INC., SILVER CLOUD FINANCIAL, INC., MOUNTAIN SUMMIT FINANCIAL, INC., AND MAJESTIC LAKE FINANCIAL, INC.

The reason the CFPB threw in the towel? They want to ” consult with new leadership” at the CFPB  🙂

Before Hon. Julie A. Robinson, the FED’s filed a “Notice of Voluntary Dismissal” against the four lenders owned and operated by the Habematolel Pomo of Upper Lake.

NO REASONS WERE GIVEN!

[Sponsor: Need a bank account for your MSB or lending business? Want to “push” loan funds to a consumer’s phone? Need ACH, credit card or debit card process? Need a second “backup” enabling your Team to sleep at night? Get an introduction here: Click “PROCESSING.”

Recall that last October, under the lead of former Director Richard Cordray, the CFPB had intended to implement new rules requiring all lenders to make a determination as to the borrower’s ability to repay the loan.

This would have caused massive disruption; after all, the typical payday loan is less than $400! How on earth coild a lender be expected to analyize ther loan applicant’s personal income, household and expense situation? Most of these folks are simply caught in a temporary financial emergency; utilities turned off, car repair, prescription needed…

For many LONG months, the payday and car title loan industry has been expecting overly aggressive CFPB rules to be implemented.

Today? These expectations are at an end! President Trump’s administration has delivered a HUGE dose of common sense to “the business of lending money to the masses.”

[As a result, our inbound phone calls and emails for consulting, capital raises, bank accounts, credit and debit card processing and “$$ push to borrowers” is escalating dramatically! TrihouseConsulting@gmail.com]

These are proving to be VERY GOOD TIMES for US households and lenders! It’s been such a LONG time that we’ve had a sense of optimism and entrepreneurship in America.

FEELS GREAT!!

Here’s the announcement from the CFPB regarding the 4 tribes:

notice-of-voluntary-dismissal-c-4-Tribes-01-19-2018

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15
Jan

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

By Jer Ayles. 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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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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