Bloomberg-Payday Loan Lead Generators

By | Jun 9, 2012

'Buzz Bee.BBM logo.500v382' photo (c) 2010, Pierre Rattini - license: http://creativecommons.org/licenses/by-nd/2.0/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.

 

Here is a link to the Article: Carter Daughtery – Bloomberg – PDL Lead Generators

 

Nice job Carter and thanks for the reference! Jer – PaydayLoanIndustryBlog.com


 

Share
5 Comments so far
  1. Franklin June 9, 2012 7:07 pm

    I’ve been making a lot of $$ over the years as a payday loan affiliate. This issue is worrying me! I’m attempting to partner with the most discriminate lenders in the PDL space. Additionally, I too would like to evolve into the lending piece.

    I’m thinking small; maybe one state to begin funding and continue to “offload” the apps coming in from the states I do not want to fund.

    Thoughts?

  2. Payday Loan Industry June 9, 2012 7:12 pm

    Certainly “doable.”

    The lending side is a whole new ball game. Lot’s of issues to confront. Software, licensing, ACH, scrubbers, capital, collections, call center…

    I would suggest a partner having the skills you lack.

    Be prepared to have sufficient capital for 6 – 14 months of “feeding” and developing your “secret sauce.”

    This is not for the feint-of-heart but can certainly be extremely rewarding!

    Jer – Trihouse

  3. Steve June 9, 2012 8:25 pm

    Jer,

    Good afternoon!

    I just finished reading Mr Dougherty’s article on payday loan lead generators. It was very informative!

    In your opinion, was is the likelihood that Senator Merkley’s bill to outlaw online payday loan lead generators will pass?

    Why not require lead generators to be licensed as an alternative, but to just wipe all of us out seems wrong! Maybe they should levy large fines on those companies that are fraudulent and/or abusive to weed them out.

    I really look forward to hearing your thoughts as to what you think is going to happen!!

    Thanks,

    Steve

  4. Payday Loan Industry June 9, 2012 8:26 pm

    Steve,

    NOT A CHANCE! This issue impacts all verticals… dating, insurance, auto… they will not successfully single out the payday loan industry!

    Jer

  5. Stanley June 25, 2012 9:24 pm

    Data leakage is a serious problem between lead gens and lenders. Bad actors skimming the ping tree. How else are the fraudulent debt collection scams accumulating so much detailed data about individual consumers?

    Lead gen has to find a way to truncate data for evaluation purposes and pass full records only after purchase.

Leave a Comment

If you would like to make a comment, please fill out the form below.

Name (required)

Email (required)

Website

Comments

What is 14 + 15 ?
Please leave these two fields as-is:
IMPORTANT! To be able to proceed, you need to solve the following simple math (so we know that you are a human) :-)
© 2009-2019... Payday & Title Lending, - Payday Loan Biz Resources & Courses How to Start Title Loan Business Website Legal Terms Disclosure
Share
Share