Payday Loan Sharks Eat Their Young-We’re All Swimming to the Last Life Preserver!

By | Feb 8, 2014

payday loan sharks

Payday loan sharks

By: Jer Trihouse. Guys, let’s get real! You manage to hook-up with an ACH processor in this environment? Shhh… hush-up, Man! Hold your cards close to your vest.

Your Team figured out a unique strategy for on-boarding a narrow demographic? You figured out a way to offer collateralized loans in a virtual world?  Your analytics guys determined that loans to zip code 48202 result in a 96% 1st time default rate? You outsourced your call center and you just spent $5K teaching them new scripts? Don’t blab your mouth off in the bar at the next OLA convention!

You want to survive this intense media, regulatory and consolidation reality we’re facing today? You gotta “secret sauce” that’s working for you; at least for the time being? Shut the F%&^&*K up!

Tactics working for you today, strategies enabling you survive this shitstorm we’re currently treading water in, whatever “magic sauce” you’ve got working for you to survive the next 12 months, need to be kept on the down-low. Tell Ep…  and you’re screwed! TranD, you’re dead meat. Infinn… fugetaboutit!!! PW? You’ll die the death of a thousand knives. Your lead aggregator? They’ll sell your ass down the river! Consultants? You might as well run a super bowl commercial that reveals your insides.

I hate this metaphor but it’s all I’ve got: We’re like a school of sharks ALL swimming to the same life preserver. Not a pretty site! It’s ugly and its raw. But, it’s the reality we’re currently in. As I my old friend and lunatic partner,  1-Eyed Jack used to tell me, “You’re either prey or your the perpetrator.” And the prey die an ugly, lengthy, painful death. You don’t want to be prey!

So… find your collaborators. Keep them close and your enemies closer. Bring it all “in-house.” Don’t get toasted in the bar at CFSA and blither away the wealth of knowledge and relationships you’ve hammered together. Get through this 6 months of pain and you’ll be rockin-and rollin again. I promise!

Scream, hug, call me the new wizard or set my wings on fire but at least I’m sticking my neck out there and trying hard to figure out our new  end game. Who wants to help?  Who among us comprends that 40M+ U.S. borrowers want our stuff! NOW!

The good old days are done@ Time to embrace the tech, twitter, pinterest, facebook, Buber, Paytoo, Dwalla, Zest, Wonga, Lendup… See the future or you will not be part of it. Of course, there may always be pot, e-cigs and bitcoins! All aboard… Give me some shitzke:

18 Comments so far
  1. Anonymous February 9, 2014 8:58 pm

    This Post is so right on! We’ve been lenders with off the shelf software and an outsourced call center for many years.

  2. fawn February 9, 2014 8:59 pm

    Bitcoins? Could I debit/credit my customers?

  3. Frank M. February 9, 2014 9:00 pm

    Will the regulators and the media ever get off our backs?

  4. J February 9, 2014 9:00 pm

    great points… makes so much sense!

  5. Perez February 9, 2014 9:01 pm

    The US Post Office? making loans? Stupid!

  6. Payday Loan Industry February 9, 2014 9:02 pm

    I’ll believe it when I see it. Probably the best thing to happen to us…

  7. Payday Loan Industry February 9, 2014 9:02 pm

    Thank you.

  8. Payday Loan Industry February 9, 2014 9:03 pm

    Cost of doing business and a barrier to entry, Frank.

  9. Payday Loan Industry February 9, 2014 9:03 pm


  10. Payday Loan Industry February 9, 2014 9:04 pm

    Yes, but proprietary loan management software brings another HUGE problem!

  11. Anonymous February 9, 2014 9:12 pm

    Jer, you’re so right. I learn more in the cocktail lounges at the annual conventions than at any of the “workshops.” In the exhibit halls, I see the same faces year after year. Yeah, there is often a new debit card provider, compliance exhibitor, lead aggregator, mobile website developer… Maybe a social media manager. But… I prefer to hang in the bars and do my learning.

  12. Cleveland February 9, 2014 9:14 pm

    When is the next convention? And, should we attend? Or will Trihouse provide us with an update?

  13. Payday Loan Industry February 9, 2014 9:16 pm
  14. Payday Loan Industry February 9, 2014 9:18 pm

    Visit And yes, we add updates to all our websites, our “Bible” and the Blog.

  15. Patricia February 10, 2014 1:22 pm

    Maybe your industry would survive if at the very moment when a consumer applied for a loan, the lenders didn’t sell all their personal information to some RAT FACED INTERNATIONAL ASSHOLE who calls and tries to Scam you with threats of being arrested BLAH, BLAH BLah. You have no integrity and that’s why your loans suck. The interest rate is irrelevant, but the blatant release of your customers information is a breech and you should be in financial ruin. There is not integrity in your business and that’s why you’re finally getting what you deserve. Don’t think that money isn’t accessible from other sources JER.

  16. Payday Loan Industry February 10, 2014 1:52 pm

    You are 100% correct. Lead aggregators and lead generators who abuse payday loan consumers should be horse whipped and prosecuted! Direct lenders – there are few – guard their customer’s personal data because they recognize the life-time value of a payday loan customer.

    I agree with your other point as well. There are “bad players” in all industries; including the Church. Slowly, we are rooting them out and destroying their wealth.

    THANK YOU for your comments, Patricia. You are a fighter and I appreciate it!! Jer

  17. Crediteck February 12, 2014 9:21 pm

    Very good post! Thanks! =)

  18. Payday Loan Industry February 12, 2014 9:56 pm

    Yep, got a LOT of laughs ;-( And brought some HEAT :-)

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