The Washington State payday loan law limits the size of a payday loan to 30 percent of a person’s monthly income, or $700, whichever is less. It also bars people from having multiple loans from different lenders, limits the number of loans a person can take out to eight per 12 months, and sets up a database to track the number of loans taken out by people.

Payday loan limit is capped at $700.00 or 30% of gross monthly income, whichever is less.

A statewide databases established so that payday lenders can track their borrower’s loans.

If a person is not in a position to repay on time, they can ask the lender for an installment plan, which the lender must provide free.

Payday loan lenders may not harass people who can’t pay

Payday loan consumers have access to 8 payday loans per year.

I suppose the rational is that by not acting as a lender of last resort, the families having exhausted all other means of obtaining cash to pay their rent, buy food and keep the lights burning, these families would have accessed the public dole much sooner.

But wait! The study goes on to describe how the U.K. government is stretched beyond capacity to contend with the growing numbers of families having no where to turn for emergency financial help. Another recent report revealed the government of the U.K experienced a 28% increase in demand by the financially challenged for “crisis loans.”

These people are nuts! Their report actually states, “Cheap credit has pulled the UK’s poorest families into a spiral of debt.” What are they thinking? Would not these families have run out of options even sooner had the “door stop lenders”, payday loan operators, car title and other “no credit checks and no questions asked” lenders failed to provide emergency cash?

Because we make money available to families who have no where else to go WE ARE TO BLAME for their misfortune! Man, I don’t get it.

Wisconsin payday loan regulators have stitched together a compromise bill that offers strong consumer protection and allows the very popular payday loan product to continue to be offered as one of many financial solutions for Wisconsin residents.

In essence, the proposed Wisconsin payday loan bill will limit payday loan consumers to a maximum $600 payday loan or 35% of a borrower’s 2-week gross income, whichever is less. This proposed $600 maximum payday loan would include any fees associated with the payday advance.

This payday loan legislation would not cap the annual interest rate that lenders can charge on payday loans. A previous bill would have limited them to 36 percent. Rep. Donna Seidel, D-Wausau, said, “The cap would have gone too far in choking off credit for borrowers struggling in the economic downturn by essentially wiping out the industry.”

Additionally, the proposed payday loan legislation allows payday loan borrowers one payday loan at a time. This would be assured by the implementation of a Wisconsin payday loan data base to be industry funded; $1 per payday loan.

Consumer protectionists applauded the proposed Wisconsin payday loan legislation because it specifically prohibits payday loan lenders from “rolling over” a payday loan consumer’s outstanding debt into a new payday loan. This addresses the so-called “cycle-of-debt” issue, a practice attacked by competitors against payday loan products. This includes banks, installment lenders and credit unions.

In 2008 Wisconsin, it’s estimated there were 530 payday loan stores that gave out 1.2 million loans totaling $723 million.

If you’re one of the millions of payday loan consumers out there, BEWARE!

Collection company agents are scamming payday loan users out of their hard earned cash.

The Kansas Attorney General, Steve Six, reports that Kansas residents are complaining about collectors calling with claims that the consumer took out an Internet based payday loan and never repaid it.

There are unsubstantiated claims by residents of other states as well.

Some of these payday loan collection agents are posing as law enforcement officers! It’s not uncommon for these collectors to threaten consumers with jail.

Payday loan consumers should be aware that their is no debtor’s prison in America.

These scam artists often identify themselves as ACS, National Affidavit Processing Department and United Financial Crime Division. The calls may be originating offshore.

It’s not unusual for the payday loan collection agents to have the ability to provide their victims with personal data including social security numbers and bank account information; even computer IP numbers.

Western Union appears to be the preferred method of payment requested of the consumers.

If contacted, consumers should demand a written notice specifying the amount of the debt, the name of the payday loan company, contact information of the payday loan company, and validation of the debt.

We advise the consumer to immediately determine if the payday loan company is licensed in the consumer’s state! If not, do not pay!

One last point; our readers should not conclude that these collection scams are singularly focused on the payday loan industry. These vultures ply their wares in virtually every financial product offered in the marketplace today.

This is an interesting article by Thomas Sowell at the National Review.

It’s a good read! Mr. Sowell begins … “Words are not the only things that enable political rhetoric to magically transform reality. Numbers can be used just as creatively — and many voters are even more gullible about statistics than they are about words, apparently because statistics seem more objective.

The latest congressional crusade is to clamp down on small finance companies that provide “payday loans” and check-cashing services in many low-income neighborhoods, where there are few banks.”

He goes on… “A common practice in making small loans of a few hundred dollars for a few weeks is to charge about $15 per hundred dollars lent. Politicians, the media, community activists, and miscellaneous other busybodies are able to transform these numbers into annual percentage charges of several hundred percent, thereby creating moral melodramas and demands that the government “do something” about such “abuses.”

Read the article in its entirety here: National REview.com

From their web site: ”

We have all seen and heard about the devastation in Haiti.  As an organization and an industry who knows the hardship of people in need, we wanted to bring you some information about donating to the relief effort.

Congressman Meek has directed us to the InterAction website which lists multiple charities to whom you may wish to contribute.  Click InterAction to access their webpage.

We have been advised that the best way to help is to donate financially to organizations responding to a disaster.  Cash donations allow relief professionals to procure exactly what is needed in a disaster situation and ensure that donations are culturally, dietary, and environmentally appropriate.

You can also click Red Cross to go directly to their donation page.

You can donate $10 to the Red Cross and have it charged to your cell phone bill by texting “HAITI” to “90999.” (There will be no processing fees).”

The Online Lenders Association organized in an effort to provide a sense of standards and guidelines for Internet based payday loan lenders.

As the Online Lenders Association OLA web site states, “All member companies have agreed to a List of Best Practices and Code of Conduct developed by OLA to ensure that consumers are fully informed and fairly treated and are using all lending products and practices responsibly.”

If any of these “protect us from loan sharks” advocates would simply visit a payday loan store, read the disclosures on the walls, take a look at the 14pt fonts on a typical contract and, MOST IMPORTANTLY, talk to a real, live payday loan customer, they would focus on building our economy via jobs and not more restrictions.

For those of you in the market for a turnkey payday loan business, we have one!

Here’s the lowdown from the seller:

“Small Internet Payday Advance company for sale.  10+ year old
company is winding down business and is currently maintaining its
current customers and is not processing any new advance requests.
Customer base has set payment plans in place to payoff all advances
by year end 2010. Many returning customer and new requests are not
being accepted or funded.

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Company website and URL’s are included.  Use Payday Loan Manager
(PLM) system, Accurint and Teletrack.  Has large data base of applicants.

If interested email your inquiries to:
4SaleInternetCo@PaydayLoanIndustry.com

Run this strictly as a payday loan Internet business or take the plunge, embrace the Internet and combine this opportunity with your store.

You get an Internet business with an existing revenue stream and customer base. You can hit the ground running with an immediate revenue stream AND you’ll get training from operators having 10+ years of experience!

So again… email:
4SaleInternetCo@PaydayLoanIndustry.com
INCLUDE YOUR CONTACT INFO AND BEST TIME TO REACH YOU.

ALSO… what subjects do you need covered?

Are you a vendor or supplier? Advertise here:
http://www.paydayloanindustry.com/payday-loan-vendors.html

Want to be a contributor? Enjoy writing? Got a topic, a product? A Solution? A bone-to-pick? Let me know!!

Jer
jer@PaydayLoanIndustry.com
The Team at Trihouse Payday Loans
702-889-9555
email us: PaydayGuys@PaydayLoanIndustry.com
http://paydayloanindustry.com/cash-advance-store.html Knowledge Store

http://www.PaydayLoanIndustry.com Everything Payday Loan
http://www.PaydayLoanIndustryBlog.com Checkout our Blog
http://www.CheckDataSystems.com Help with Collections
http://www.PaydayLoanLegislation.com Laws & Legislation
http://www.AutomobilePawn.com Make $$ in Auto Pawn
http://www.GoldintoLoot.com Buy Sell Scrap Gold & Silver

Your customer data has tremendous value. And there are companies willing to pay you a ton of money every month for this information. You can monetize your customer data at zero expense to you and with no risk of cannibalizing your data.

And there is zero risk of ANY marketing to your data by third-parties!

This is literally FREE CASH FOR YOU!

So…  want to know how this works and what it means in dollars and cents to you and your operation?

Read on…

You, the data owner or Contributor, “park” your consumer data records with “THE COMPANY” via a data transfer to a secured FTP web site. The data is stored using state of the art security to protect all data. “THE COMPANY” scrubs this data against their current database of records. Any data records “THE COMPANY” doesn’t already have in their database are accepted and held in the Contributor’s (that’s you).

When one of the clients of “THE COMPANY” (typically a licensed and bonded debt collector or law firm) performs an authorized social security search for a consumer and they find it in your file and purchase the consumer record from “THE COMPANY”, you share in the revenue derived from that sale.

So… a debt collector has paid “THE COMPANY” for the consumer data that you provided “THE COMPANY” thus enabling you to receive a commission for your data contribution.

Let’s use an example.

XYZ Payday Loan Company dumps 100,000 records into “THE COMPANY’s” database on January 5. “THE COMPANY” reconciles the 100,000 consumer records provided by XYZ and discovers 37,000 of those consumer names are unique and not yet in “THE COMPANY’s” database. (Let’s say the other 67K consumer names were already present having been contributed by other Payday Loan Companies.) So… continuing our example, let’s say for the next 25 days remaining in January, clients of “THE COMPANY” search for 50,000 records of which 75 “hits” come from records previously submitted by XYZ Payday Loan Company.

“THE COMPANY” bills their clients (Collection Companies) net 30 at the end of January for let’s say 75 hits X $20.00/ea. = $1500.00. “THE COMPANY” collects this $1500.00 from their client by March 1 and pays you, the Data Contributor, X% of the $1500.00 collected. Typically, you’ll receive payment about 60 days after your first data contribution followed by monthly cash payments after that.

Benefits to you, the Data Contributor?

Additional revenue by monetizing the consumer data you have anyway! Consumer data from your dormant or denied files and non-current customers; data you have zero use for! Dead data that would not normally yield revenue to you!! FREE MONEY!!!

How it works.

Simple! You simply dump your data at a secured FTP web site. Virtually all file types are can be accepted. Then you make regular data dumps to the FTP site to keep growing your record base. Hot lining the data after the initial transfer usually yields higher returns. Just ask we will explain!

How to Qualify.

You really need at least 50,000 records less than 12 months old. Data records older than 12 months are acceptable but not as valuable. Contact us! Let us know what you have! This program is for both Internet and Store-front operators in consumer related industries.

How to Turn Your Consumer Data into $$$$$$

Send an email to:
4DataDollars@PaydayLoanIndustry.com
Your Name, Phone, Best time to call.
Please include an approximate number of records you have along with the aging. For example: I have 65k records from the last 6 months, 100k records in the 6-12 months age and another 200k over 12 months old.

All information is kept strictly confidential and your company name will never be disclosed as a data contributor.

Does this sound like a no-brainer? Your thoughts? What micro-lending information do you desperately need?

Do you have a  that’s service, product or opportunity that is relevant to our readers?

TALK TO ME!
Jer
Jer@PaydayLoanIndustry.com

1) You’re not simply a payday loan provider, a car title loan lender, a rapid tax refund agent, a check casher, a bill pay processor, a rent-to-own center, a pawn shop… you’re in the micro-lending industry; a giant niche worth billions of dollars annually throughout the world.

2) Embrace the Internet or Die!

3) Joint ventures and partnerships can make a great deal of sense.

4) Canadian affiliate program opportunity.

Read this Newsletter online here:
http://www.PaydayLoanIndustryBlog.com

Although not a new trend, the combination of brick-n-mortar locations with an Internet presence is certain to eventually become the dominate model. We continue to stress this strategy over and over again to our clients for whom we consult and in our own store and Internet businesses.

If you have a physical location(s), why would you choose to be solely dependent on attracting potential clients from a 5 - 8 - 10 mile radius around your store when, with the aid of a little technology, you can service residents of your entire state or province. And it’s not a huge stretch to service an entire country. In addition to actually funding these loans, there are a multiplicity of methods to develop revenue streams from these leads. See: Payday Loan Affiliate Programs

Sure, more than a few of your customers insist on, and are most comfortable, with face-to-face transactions only. But we all know that consumers in larger and larger numbers are becoming more and more comfortable conducting their business via the Internet.

Another trend we’re witnessing is joint ventures between payday loan, car title lenders and other micro-lenders in niches such as installment lending, rapid-tax refund providers, and more.

Let’s get specific…

*****************Our Sponsor****************************************
Need help with Collections?
Get Every Loan You Make Guaranteed.
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Take the recent announcement by BHM Financial Inc. regarding their partnership with The Money Stop.

The Money Stop is a payday loan chain having physical locations in British Columbia and Alberta, Canada.

BHM Financial Inc. is a financing company specializing in secured bad credit loans, installment loans, car title loans, mobile home and RV refinancing; mostly on the Internet.

The strategy for this partnership is that, until their affiliation with BHM Financial, The Money Stop was only able to finance small dollar amounts with short lending terms (payday loans). Because The Money Stop is now offering financing through BHM, they’re able to offer their clients larger loans with flexible rates and longer repayment terms regardless of the client’s credit history. This permits The Money Stop to gain new business they might have otherwise lost due to not having the capability of offering these types of loans.

BHM gains the added business brought in by individuals seeking loans from local lenders in face-to-face-transactions. Until now, BHM Financial was strictly an Internet lender. BHM Financial’s problem was that consumers are not always comfortable applying for a loan online, and BHM has the majority of their application process on-line. The team at BHM Financial felt they were missing out on the opportunity to enter transactions with these non-Internet savvy consumers. Their partnership with The Money Store enables them to service these consumers by allowing them to apply in person with a local lender. Through The Money Stop, BHM Financial Inc. can offer the more personalized, one on one service that BHM found difficult to accommodate via the Internet.

Specifically, why is this partnership good for The Money Stop? Well, as our readers know, the majority of payday lenders (depending on locale) are only able to advance small sums amounting to a percentage of the client’s paycheck. Additionally, repayment was due on the client’s payday with little flexibility in repayment terms. Now, due to its affiliation with BHM, The Money Stop will be able to offer car title loans from $1,000 to $10,000 with flexible repayment terms anywhere from 1 to 4 years in length. New for The Money Stop, these loan products are called car-title loans and they are primarily given to individuals who cannot secure financing through standard financial institutions because of bad credit or no credit. The loans are secured by the borrower’s vehicle and because of this collateral, the loans are funded regardless of the borrower’s credit history.

The Money Stop will continue to offer all of the loans and services they previously offered and will simply add BHM’s car-title loans and mobile home and RV refinancing to their offerings. BHM assures that The Money Stop’s clients will experience the same loan process they have always experienced. Car-title loans can be approved in hours and funded in less than 24 hours and the process can all be completed at The Money Stop’s physical locations.

So… what’s the point?

1) Again, we are NOT simply providers of one or two specific products. Micro-lending is what we do.

2) We must be flexible and creative. Our product lines are evolving. Who knows what our collateralized and non-collateralized loan products will look like in the future.

*******************Got a Product/Service for Payday Loan Operators?************
Advertise here:
http://www.paydayloanindustry.com/payday-loan-vendors.html
*******************************************************************************

3) We need software that offers an easy transition into creative products and services.

4) We need a web site. Even if we start with a simple 3 or 4 page web site capable of simply emailing a basic application. This basic site will allow us to play and experiment with design, traffic generation techniques, and more. A basic web site will help establish legitimacy in the eyes of many of our consumers. You can accomplish this basic goal for as little as $500 in today’s market place. (For more on this email: Websites@PaydayLoanIndustry.com )

5) Joint-ventures and partnerships with companies offering complementary products and services can make a great deal of sense. Combining the brick-n-mortar world with an Internet presence must be accomplished for future survival.

PS: our Canadian readers may want to consider a relationship with BHM Financial as well. BHM Financial Group is expanding throughout Canada and is currently accepting the registration of additional Payday Loan Affiliates.

Become an Agent and earn 10%!

If you are the owner of a Payday Loan, Cheque Cashing, or another type of short-term lending business in Canada, you can now become an agent of BHM Financial and start offering car title loans (loans secured on a vehicle) for $1,000 – $10,000 and earn as much as 10% commission up to $250 per application financed. Become an agent and start offering your clients the convenience of secured loans right from your storefront!
email:
Agent-BHMFinancial@PaydayLoanIndustry.com