Tag: how start car title loan business


CFPB Under Attack Again by PDL, Banks, Credit Union Trade Groups

Congress Attacks All Planned CFPB Rules

Jer Trihouse

Jer Trihouse

By: Jer Ayles-Trihouse. Financial, fintech, banking and credit union trade groups are storming Congress to  repeal all upcoming CFPB [Consumer Financial Protection Bureau] rules governing arbitration, payday lending, debt collection and prepaid cards by using its authority under the Congressional Review Act.

All of us in the payday loan, installment loan, short term loan and car title loan industry are fully aware that the CFPB is about to finalize several rules, including arbitration, small dollar, third-party debt collection prepaid cards… having a deleterious and ultimate choke hold on consumers, the economy, and balance sheet lenders.

It’s time for Congress and President Trump to implement their authority under the Congressional Review Act (CRA) to blow-up these threats by the CFPB!

Meanwhile, we’re all forced to spend HUGE amounts of MONEY and Time dealing with CFPB rules that will likely NEVER SEE THE LIGHT OF DAY!

The structure of the CFPB has been determined to be unconstitutional by a federal D.C. Court!

So, let’s get back to serving the desires of the millions of borrowers who VOTE for payday loans, title loans, small dollar short term loans demonstrated by their DAILY USE OF OUR FINANCIAL PRODUCTS, and allow us to continue to develop new loan products at reduced rates and fees for our clients.

The CFPB is already a dinosaur that stifles competition, destroys consumer ability to make choices that fit their own unique financial situation and puts millions of dollars in the pockets of lawyers, consultants and lobbyists RATHER than allowing balance sheet lenders to focus on providing outstanding service at fair rates!

The future of our small dollar, short term lending industry has not looked this bright in a LONG TIME. There is still tremendous opportunity for “mom-and-pops,” venture capitalists, hedge funds, and vendors such as loan management softeare companies, ACH/ICL/DEBIT providers, tribes, money transfer system conduits… to enter and SERIOUSLY PROSPER in our industry!

Excited? Wnat to learn more? Need help? Got a question? Jer@TrihouseConsulting.com 702-208-6736

Finally, to receive future updates from us, simply plug in your First Name and your email address. Then click on the “Subscribe Link” that you’ll shortly receive in your Inbox. No Spam and no Garbage. Spam is for jerks and we are not jerks!

Now go make some $$. Jer Trihouse


Where to Open Payday & Title Loan Stores

Where to open a new car title or payday loan store?

Alright, after months of researching the payday loan and car title lending industry you’ve finally decided to pull the trigger and launch your new business. Sure, you’ve read our chapter focused on “Site Selection” in our  “How to Start a Car Title Loan Business Manual” or our “Payday Loan Bible.” And you’ve visited dozens of your competition’s stores. You’ve got a few loans to see how it works. You’ve talked to employees of your competition just as we suggest.

But I know what you’re feeling about now! FEAR!! In spite of all the hard work you’ve done to prepare for this day, you’re still nervous. I know because I was where you are today. Back in 1998 I opened my first payday loan store in Garden Grove, Calif. That was followed by a car title loan store in Mission Viejo.

Signing on the bottom line of that 3 year store lease was SCARY. And there was NO STARTUP MANUALS to walk me through all the laws, the loan management software, the marketing strategies, collection tactics, borrower underwriting and all the other pieces that a Lender needs to successfully run a small dollar credit store.

But, after reducing the shaking in my hand I signed on the bottom line of the Lease Agreement and never looked back.

That was 15 stores ago plus the launch of several highly successful Internet portfolios, mentions in the Wall Street Journal, New York Times, Bloomberg…

So, in a nutshell, where would I open a new payday or car title loan business TODAY? In a Walmart. Or next door to one. Or across the street… Not possible for you? Then near a tax return business with a well known brand (Think H & R Block) and lot’s of clients. Or near a highly successful pawn shop chain. Or, a well known and branded check cashing chain like Ace.

You get the point. Borrowers who qualify for payday loans and car title loans have the following:

  • Jobs. Or at least some kind of steady income you can verify
  • Bank accounts.
  • Household incomes of $18,000 to roughly $85,000 annually
  • They shop at Walmart, Target, get their taxes done…

Click here to invest in our “How to Start a Payday Loan Business” or “How to Start a Car Title Loan Business” and learn how to dump your day job and achieve serious success in the small dollar credit space. Just follow our model…


How to Start a Car Title Loan Business-Not

Six People Accused of Conspiring to Commit Loan-Sharking Involving Car Title Loans

How Not to Start a Car Title Loan Company

A multi-agency investigation has resulted in charges against six people for allegedly conspiring in an extensive car title loan scheme that allegedly defrauded unsuspecting consumers out of thousands of dollars each. Many affected consumers also lost their vehicles.

The Los Angeles County District Attorney’s Office charged the six defendants with one felony count each of conspiracy to commit loan sharking. If convicted, each defendant faces up to five years in prison. Those charged are: Alex Loxley, 39, of Santa Monica; Micayel Simonyan , 31, of North Hollywood; Walter Reyes, 28, of Los Angeles; David Watkins, 34, of Beaumont; Daniel Cool Star, 33, of Los Angeles; and Gustavo Aguirre, 33, of Glendale. All six defendants have been ordered to appear in court to answer to the charges.

The defendants are accused of making illegal loans to consumers that were guaranteed by their car titles. The charges alleged that the defendants did not have the required license to make such loans. The defendants are accused of illegally charging consumers interest rates as high as 150 percent.

Some loans were negotiated in Spanish, but consumers were not given contracts in their language as required by law.

The defendants allegedly operated several illegal car title lending locations throughout Southern California. The County of Los Angeles Department of Consumer Affairs (DCA) received complaints from consumers complaining that the defendants allegedly demanded more money than originally agreed upon, repossessed their cars unlawfully, and denied them the opportunity to reclaim their cars and/or personal belongings.

“When taking out a loan, it’s important for consumers to shop around for the best rates,” said DCA Director Brian J. Stiger. “All lenders including car title lenders must make loan terms clear so consumers can make informed decisions.”

Several other agencies participated in the investigation, including the Los Angeles District Attorney’s Office Bureau of Investigations, Los Angeles Police Department, the Department of Motor Vehicles, the California Department of Business Oversight, and the U.S. Department of Homeland Security.

DCA Investigation Leads to Loan-Sharking Charges

A car title loan, or pink-slip loan, is a small, short-term, high-rate loan that uses the title of your vehicle to guarantee the loan. These loans typically are for 30 days and have a triple-digit annual percentage rate (APR). In California, car title lenders must be licensed by the California Department of Business Oversight. You can check whether a lender has a valid license here: www.dbo.ca.gov/FSD/Licenses.

If you apply for a car title loan, it’s important to:

  •  Review the loan terms: Car title lenders must give you the terms of the loan in writing before you sign for the loan. Specifically, lenders must give you the finance charge (a dollar amount), the APR (the cost of credit on a yearly basis), and the total amount the loan will cost you. The contract has to be in the language you use to negotiate the loan.
  • Beware of the interest rate and other fees. Lenders often charge an average of 25 percent per month to finance the loan. Lenders might also charge late fees, processing fees, and title charges.
  • Know the due date: Most car title loans are due in 30 days. If you can’t pay off the loan in the typical 30-day period, the lender may offer to “roll over” the loan into a new loan. In many cases, the roll over process adds fees and interest to
    the amount you originally borrowed.
  • Avoid repossession: If you don’t pay what you owe, the lender may repossess your vehicle. This can be devastating if you rely on your vehicle to commute to and from work. Some lenders require installation of Global Positioning System (GPS) or starter interrupt devices on the vehicles so they can find them for repossession. Car title lenders must tell you if they are going to install a tracking device.

Alternatives to Car Title Loans

Before you decide to take out a car title loan, consider some other choices:

  • Take out a small loan. Consider a small loan from your bank or credit union. Some banks may offer short-term loans for small amounts of money at competitive rates. A cash advance on a credit card also may be possible, but at higher interest rates.
  • Shop for credit. Whether you’re looking for a car title loan or another form of credit, always shop for the best offer. Compare the APR and the finance charge, which includes the loan fees, interest and other credit costs. Make sure you know the total amount the loan will cost you.
  • Contact your lender if you fall behind on your payments. If you’re considering a car title loan because you’re having trouble paying bills, contact your creditors and ask for more time. Many may work with you if they see you’re acting in good faith.

If you believe you are a victim of this group or any car title lender, contact DCA for help:
DCA Investigation Leads to Loan-Sharking Charges


How Big is the Sub-Prime Car Title Industry?

'Atlanta Title Loans' photo (c) 2010, Ken Teegardin - license: http://creativecommons.org/licenses/by-sa/2.0/How Big is the Sub-Prime Car Title Industry? No one really knows. But this is interesting…

Exeter Finance Completes $300 Million Securitization
IRVING, TEXAS – Exeter Finance Corp., a specialty auto finance company, announced the completion of its second rated term securitization, issuing $300,000,000 in notes backed by subprime automobile installment receivables.

The notes were purchased by qualified institutional buyers and accredited investors in a private placement offering pursuant to Rule 144A of the Securities Act.

The four note classes carried ratings ranging from AAA/AA through BB/BB from DBRS and Standard & Poor’s, respectively. The weighted average coupon was 2.3 percent. Wells Fargo Securities and Citigroup acted as lead managers, while Deutsche Bank Securities and Goldman, Sachs & Co. acted as co-managers.

All notes included in this securitization have been sold. This announcement of their sale appears as a matter of record only.

About Exeter Finance
Exeter Finance Corp. is a specialty auto finance company based in Irving, Texas. Exeter partners with franchised auto dealers throughout the country to make car ownership a reality for consumers. Building personal relationships and providing the highest level of service to dealers and customers have been key to the company’s success since its founding in 2006. Exeter takes pride in staffing all branch offices with local decision-makers. Auto Dealer Monthly named Exeter the “Top Finance Company for Dealers” in 2010, while Auto Finance News selected Exeter for its Auto Finance Excellence Award in 2011. Please visit www.ExeterFinance.com to learn more.


Car Title Loans Businesses Return to New Hampshire

'Atlanta Title Loans' photo (c) 2010, Ken Teegardin - license: http://creativecommons.org/licenses/by-sa/2.0/The car title loan business is returning to New Hampshire. Legislators had hoped banks and credit unions would enter the market and fill the void when payday loan and car title loans were reduced to 36% APR’s by the regulators in 2009. This never happened. Instead, New Hampshire residents were simply deprived of another choice for navigating temporary financial challenges.

When state lawmakers capped the interest rates on payday loans at 36 percent in 2009 payday loan and car title loan lenders left New Hampshire in droves.

In 2012, the New Hampshire Legislature reversed the interest rate cap on title loans, overriding a governor’s veto to do it. Now, lenders can charge a monthly interest rate of 25 percent, the equivalent of nearly 300 percent over 12 months.

A car title loan is secured by a signature and a vehicle title. There is no credit check or verification of a borrower’s income, and a borrower can get access their funds immediately.

Under the New Hampshire  car title loan law, lenders can loan a person up to $10,000 and no more than 35% of their total gross income. The New Hampshire title loan law allows lenders to renew the initial 30-day loan for 10 months. The title loan lender can charge 25 percent interest each month. A borrower must pay at least 10 percent of the loan’s original principal each month.

If the borrower fails to pay-off the principal, the lender can find them in default and take the car, motorcycle, recreational vehicle, or boat. Rather than a repossession, a better strategy is for a car title loan lender to reduce the loan principal on which they charge interest and create a win-win for both the borrower and the lender. We don’t want the vehicle.

An example:
A loan principal of $1,000 loan; the lender might charge 25 percent interest the first month on the entire $1,000. If the loan is unpaid after one month, and and the borrower renews it, the title loan lender might charge interest on $900. The following month, the might charge interest on $800, etc.

If the title loan lender eventually repossess  a borrowers’ car for nonpayment because the borrower refuses to contact and make any attempt to work with the lender, the lender could sell the vehicle and keep what they are owed. Any additional monies remaining after the sale must be returned to the borrower.

Visit http://www.AutomobilePawn.com for training and strategies for starting a car title loan business.