Carter Doughtery with Bloomberg wrote an informative piece on payday loan lead generators.
Internet Lenders MUST solve these issues regarding consumer trust, privacy and data protection or they’ll never achieve the velocity they strive for, nor the ability to take market share, from the “brick-n-mortar” stores.
Ultimately, the only consumers who will choose to enter a relationship with an Internet lender, be it a state-licensed, choice-of-law, a tribe, or an offshore operation – this is assuming consumers can even make this determination – will be those consumers who reside in a state that does not have safe-harbor legislation in place nor can the consumer drive across their state border to get one (very common!).
It should be pointed out that a current trend in the payday loan/micro-lending industry is that lead generators are evolving into lenders as well! Their margins are getting squeezed badly and the data-scrubbers are getting very efficient.