Loans on prepaid cards may seem to be a contradiction in terms, but CheckSmart’s Insight Cards have two different loan features. Consumers who have their public benefits or wages directly deposited onto the cards can enroll in overdraft “protection” at a cost of $15 per $100 overdraft, or they can take an advance of their income at a rate of $14 per $100 plus 35.9% interest. The loans are repaid immediately upon the next direct deposit, resulting in an annual rate of 390% to 401% for a two-week loan.

“Banks simply should not be in the business of facilitating payday lending, which just leads cash-strapped consumers into a cycle of debt,” added Jean Ann Fox, director of financial services at the Consumer Federation of America.

“We urge the OCC to crack down on Urban Trust Bank for facilitating this deceit, which is an abuse of the national bank charter,” concluded NCLC’s Saunders.

The  coalition letter to the OCC; a  legal analysisand  related exhibitsto the OCC from the National Consumer Law Center, the Center for Responsible Lending, and the Consumer Federation of America; and an  Issue Briefon prepaid card payday loans are available at www.nclc.org.

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Since 1969, the nonprofit National Consumer Law Center® (NCLC®) has worked for consumer justice and economic security for low-income and other disadvantaged people, including older adults, in the U.S. through its expertise in policy analysis and advocacy, publications, litigation, expert witness services, and training.

The Center for Economic Integrity engages in research, education and advocacy to strengthen local economies by mobilizing and protecting marginalized people, holding corporations and industries accountable to communities and cultivating support for good business practices.

The Consumer Federation of America (CFA) is an association of nearly 300 non-profit consumer organizations that was established in 1968 to advance the consumer interest through research, advocacy, and education.

Policy Matters Ohio is a non-profit, nonpartisan policy research organization founded in January 2000 to broaden the debate about economic policy in Ohio. Our mission is to create a more prosperous, equitable, sustainable and inclusive Ohio, through research, media work and policy advocacy.

Payday loan legislation moving along… DE PDL Law

This picture says it all! This “graphic wrap” for your business is a no-brainer. Drive it… move it… park it… better than signage. It certainly can compensate for a poor location! Budget $2500 depending on your locale. Email us for your local installer.

Need know-how? Want to start a payday loan business? Sign up for our Payday Loan Boot Camp Click here to join us for an intensive 2-day Boot Camp in our “LIVE” Store in Southern California (near Disneyland).

Are you thinking about getting into the Payday Loan business? Do you want to really know the in’s and outs of owning a payday Loan company? Reading a Manual is one thing, but actually performing the daily task of owning and operating a payday loan company is a whole different beast. A Payday Loan Manual cannot answer specific questions that arrive after just reading it. So stop reading and start doing!!

Come to our Payday Loan Boot Camp and experience the actual day to day operations in a live store to see if this business is right for you!!

We will show you how to:

• Get a customer and exactly what to do when your first customer arrives.
• How to qualify and process a Payday loan candidate.
• How to collect once you have your first customer.
• We will enable you log into our software and teach you step by step the process of writing a payday loan.
• We will answer all of your questions at that very moment to end any speculation that may occur.
• We will show you exactly how to organize you office to handle your daily tasks.
• What to do if a loan goes bad.

So, stop guessing how this business works and come learn on the job!! Our boot camp will save you a tremendous amount of time and money. When you leave our payday loan store, you will have the tools and experience needed to start a payday loan business!!

Click here for Schedules and Pricing Information
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Trihouse Consulting PaydayManual.com
1-702-208-6736

Interesting Post at Bank Technology News regarding Zest Cash Expansion in more States and implementation of technology to fund more consumers.

It’s not too late to register for the CFSP California Financial Service Providers Convention in Coronado, Calif. It’s May 6 – 8, 2012.  You want to know the latest regarding trends, tactics, compliance, regulation… ? Register Now! Even better, this year it’s at the beautiful Loews Coronado Bay Resort and Spa!

I’ll be there. Call me at 702-208-6736 (Cell).  Email Jer@PaydayLoanIndustryBlog.com

As those of you who receive my Monthly Newsletter know, the past 30+ days I’ve visited Cancun Mexico, Miami, the Bahamas (Nassau) and, as I write this, San Jose, Costa Rica. All of these fact-finding trips focused on various payday loan licensing models and outsourcing of various integral pieces of payday loan operations to service payday loan consumers and develop strategies to profit in our industry.

I always get some “heat” for discussing these issues and strategies! Some of us are making serious money in the payday loan space and want to “keep it a secret.” Others already in our space worry that the  CFPB and State  AG’s will become aware of our methods and “attack”us. (DUH, they know we exist and when setup by pros there is zip they can do. Just follow TILA, FDCPA, disclose everything clearly and don’t beat on your customers!)

Operators with brick-n-mortars are sometimes envious of the perceived simplicity and low barrier to entry into the Internet payday loan space. Many Internet operators sweat out state/provincial licensing approaches.  Then you have all the brick-n-mortar players who think because they have a solid management Team in place it’s a simple transition to the internet. Nothing could be farther from the truth!

Store-front expertise doesn’t mean jack when attempting to build a successful Internet payday loan operation! I’ve seen very experienced store Teams fail miserably at managing Internet portfolios. You need a much different skill-set and some experienced partners when you have to rely on buying payday loan leads, providing round the clock call-center services, collecting $500 from a consumer in default 1000+ miles away from you, re- marketing to your existing customer base, taking market share away from your competitors, being compliant with all the State/Federal/Provincial laws and regs, getting your payday loan software provider to respond to your requests for support, maintaining a <1% charge-back ratio with your ACH provider and dealing with all the other hassles and risks in the payday loan industry. And let’s not leave out your Search Engine Optimization, Search Engine Marketing, Adwords and Bing account managers and on and on and on.

Why do it? The money! Done well, I know of very little else offering the ROI of payday loan businesses.

You don’t have to have all these skill sets in-house. Find “partners” and vendors that provide the pieces you’re missing. It’s one thing to buy 50 leads/day, and fund 10 of them. Depending on your lead source, your under writing criteria, and your collections Team, this could be accomplished in a small office anywhere using any off-the-shelf software.

But to reach serious velocity, and we estimate at least 325,000 payday loans occur daily just in the  in the U.S., you must evaluate what you bring to the table (capital, legal, marketing, collections, IT, call center expertise…) and create your “secret sauce.”

I’ll follow up on these issues shortly. I’m  wrapping up a convention focused on offshore based payday companies using call centers, lawyers, taxation pros, bankers and financiers and more in Costa Rica this week. These are pros from around the world. The tribes are well represented as well and offer some enticing, sophisticated “boiler plate” that can enable you to reach your goal.

Do you want to thoroughly understand the tribal/sovereign nation model? It’s basically the Texas CSO payday loan business model. The strategy is to employ a “servicer/marketer” and a” Lender.” Read our highly popular CSO/CAB Report and you’re on the road to understanding the payday loan tribe model. Get this… It’s the last item we offer here: http://paydaymanual.com/cash-advance-store.html

And don’t bother to start harping on tax evasion. These business models incorporate methods and strategies to service consumers around the world including The U.S., Canada, AU, Mexico, Scandinavia, Europe, The UK and many more locales. Cost reduction and tax minimization are the goals – just like Google, Coca Cola, IBM, Microsoft and more.

Finally, regarding all you guys that think it’s too late to start a payday loan, car title, scrap gold buying, tax service and more all under one-roof, complementing one another, quit crying! I speak with very competent, multi-unit store owners who are salivating over what they perceive to be a tremendous growth  opportunity.

You want to finally get off the dime and start playing in the ruff and tumble payday loan industry?Put some smart guys together in a room, and build a Team with complimentary skill sets to achieve the dream and IT CAN STILL BE DONE! Pay for solid experience to guide you, find the right vendors to help you down the path and you too can attend Payday Loan – micro-lending conventions around the world on the Governments dime – seek legal counsel )

Jer@TrihouseConsulting.com

http://www.PaydayManual.com

702-208-6736

http://www.loansafe.org/bill-could-allow-payday-lenders-back-into-pa

Pennsylvania payday loans on the way… look for this to become a reality in many of the “dark States.”

DFC Global -DLLR- is getting their hands on $200 million dollars at 3.25%! Yeah, the notes have a convertible feature with a 21% premium but geez Louise! My clients and I have to pay 2% – 3% A MONTH for capital to put on the street.

From the Press Release:

The notes will be unsecured, senior obligations of the Company and will pay interest semi-annually at a rate of 3.25%. Prior to October 15, 2016, the notes will be convertible only upon the occurrence of certain events and during certain periods, and thereafter, at any time until the second scheduled trading day preceding the maturity date. Upon conversion, holders will receive cash up to the principal amount and shares of the Company’s common stock in respect of any excess conversion amount. The initial conversion rate for the notes is 46.8962 shares of common stock per $1,000 principal amount of the notes, which is equal to a conversion price of approximately $21.32 per share, representing a 29.0% conversion premium based on the closing price of the Company’s common stock of $16.53 per share on April 10, 2012. The notes mature on April 15, 2017.

Payday loan tribe model: wrong move? Robinson v. Tucker — RICO Class Action against Miami Tribe/Santee Sioux Payday Lending Business Partners
Get the Case  filed in Kansas City District Court Here: Robinson v. Tucker      It’s available via Adobe Acrobat from our server at PaydayManual.com

Jer – Trihouse 702-208-6736

The payday loan industry has been partnering with tribes for a few years. Some of these “partnerships” do not pass muster. But, much like the gaming and energy industries have successfully entered into financially beneficial business enterprises with federally recognized tribes, so can payday loan lenders. Both the tribe and the lender must employ experienced counsel to navigate the challenges.

“Rent-a-tribe” and “sham agreements” are really not necessary to put these deals in place. Our Federal Government specifically supports sovereign tribal nations in their efforts to share in the American dream. However, these enterprises must be created properly with all sides aware of the requirements to create a fair and equitable business, employ full disclosure and solve a need in the market place.

When a break down occurs, you get the following result…

Los Coyotes win case against Eagle Rock Training Center – Military contractor must get its stuff off tribal land by June

A San Diego County Indian tribe has emerged victorious in its legal battle to boot ERTC, a military contractor from its land.

Beginning in 2011, Los Coyotes Band of Cahuilla and Cupeno Indians has been trying to evict Eagle Rock Training Center (ERTC), a combat training facility. The tribe alleged that a 25-year lease agreement with ERTC signed in 2010 by then-tribal spokesperson Francine Kupsch, which also included a waiver of the tribe’s sovereign immunity, was void because it had not been reviewed by the Bureau of Indian Affairs; nor had it been ratified by the tribe’s General Council.

When the tribe attempted to evict ERTC last year, the company refused. Facing physical expulsion from the land by tribal police, ERTC took the tribe to federal court.

Los Coyotes took its case to Intertribal Court of Southern California, which heard arguments in December. Tribal Chief Judge Anthony Brandenburg issued his ruling on Feb. 1, siding with the tribe and rendering the lease invalid.

Chief Brandenburg noted that the contract did not include the official tribal stamp; nor could ERTC provide evidence that the General Council had voted on the lease. ERTC’s attorneys argued that it believed Kupsch could make decisions on behalf of the tribe, a position the judge disagreed with; particularly regarding the issue of waiving tribal sovereign immunity.

“Allowing a single person to do so is unheard of in Indian Country and is contrary to the sacred principle,” the judge wrote.

The judge did not award damages to either party since the tribe had received some compensation from ERTC’s activities. However, the judge made it clear he believes ERTC exploited the tribe’s naivete:

“The bargaining positions of the parties completely favored ERTC. Los Coyotes economically is a poor tribe. Couple with their remote location, high rate of unemployment and lack of economic standing in the Tribal world they are clearly in need. As presented at Tribal meetings and by way of testimony at trial ERTC’s promises to the tribe were almost [too] good to be true, at times grandiose. There is no doubt in the court’s mind that during negotiations ERTC had the upper hand. Promises of Hollywood productions, exposure on the Discovery Channel, million dollar greenhouses, military exercises, a new tribal hall, a children’s park, automobiles and more were made. It is understandable why lacking the same bargaining position, legal and business acumen Ms. Francine Kupsch did what she did. However her good intentions do not compensate for her actions.”

Payday loan partnerships with tribes are being done PROPERLY every month! Pay a few bucks and get this right!

See San Diego City Beat article by Dave Maass for the entire piece.

Jer – Trihouse Consulting 702-208-6736