Tag: payday loan industry


CFPB Takes Broadside- Leadership Structure Ruled Unconstitutional!

CFPB Leadership Structure Ruled Unconstitutional by D.C Circuit Court 🙂

This just in from Ben Lane:

“In a unanimous decision of the three justices of the United States Court of Appeals for the District of Columbia Circuit, the court ruled that the CFPB’s current structure allows the director to wield far too much power, more than any other agency in the government.”

‘Because the Director alone heads the agency without Presidential supervision, and in light of the CFPB’s broad authority over the U.S. economy, the Director enjoys significantly more unilateral power than any single member of any other independent agency,’ the court writes.

And it gets worse for the CFPB.

“From the court’s decision:By “unilateral power,” we mean power that is not checked by the President or by other colleagues. Indeed, other than the President, the Director of the CFPB is the single most powerful official in the entire United States Government, at least when measured in terms of unilateral power. 

That is not an overstatement. What’s this mean  for the Payday Loan Industry?

What about the Speaker of the House, you might ask? The Speaker can pass legislation only if 218 Members agree. The Senate Majority Leader? The Leader needs 60 Senators to invoke cloture, and needs a majority of Senators (usually 51 Senators or 50 plus the Vice President) to approve a law or nomination. The Chief Justice? The Chief Justice must obtain four other Justices’ votes for his or her position to prevail. The Chair of the Federal Reserve? The Chair needs the approval of a majority of the Federal Reserve Board. The Secretary of Defense? The Secretary is supervised and directed by the President. On any decision, the Secretary must do as the President says. So too with the Secretary of State, and the Secretary of the Treasury, and the Attorney General.

In short, the court writes, the director of the CFPB is the “single most powerful official in the entire U.S. Government, other than the President,” in terms of unilateral power.

Email TrihouseConsulting for a PDF of the Original D.C. Court Decision: Original Article Put “DC Circuit in Subject.”

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Lack of Capital Not the Problem in Small Dollar Lending Space

Be aware! A lack of “capital” is not the challenge in our industry today. There is a “ton” of money looking for opportunities. What is lacking is specific expertise!

What “capital” desires is tech savvy, specialized knowledge, a strong Team having the ability to mitigate risk and avoid catastrophic failure at launch and the ability to innovate and implement new “twists” on the small dollar lending space. Please don’t think I’m referring solely to the Internet lenders. B & M’s offer many possibilities as well. Blended solutions make a lot of sense. The goal is simply to make it as easy as possible to enable our small dollar loan customers to gain access to our financial solutions.

Operations professionals having “in the trenches” experience in lead gen, scrubbing, call centers, LMS, collections, operations, branding, SEO/SEM/PPC/Organic, direct mail, offline marketing, legal counsel, portfolio management, mobile, strategies, tactics and on and on… are highly desirable and sought after today.

On those rare occasions when the “capital” also has expertise in one or more “slices” of this small dollar loan pie, it’s MAGIC!!

Few of us have the luxury of investing endless hours with Google searches, Linked In, Google+  and Facebook accounts, networking at yearly conventions, and searching for “experts” having hidden agendas. Want to explore?  Jer@TrihouseConsulting.com 702-208-6736 My agenda? Putting people and solutions together to make money!

“It’s a long season and a small clubhouse.” Yogi Berra?


Payday Loan Industry-Opportunities, Challenges and Respect

Jer here. My rant today targets the multitude of opportunities in the payday loan space.

Capital is simply a commodity! Ask what your financier brings to the table in addition to dollars.

This isn’t a short analysis. You want superficial B.S? Click away now . Pay the price, invest 5 minutes of your time and THINK.

There are serious disturbances occurring today. Worldwide consumer demand, technology, regulatory oversight, extraordinary availability of capital, disclosure and cycle-of-debt issues…

What does all this really mean? There has never been more opportunity in our space than today. Sure, there are challenges.


Customers all over the world – by the millions – want our product.

What’s this mean to you? How do you want to get involved?

Do you want to partner? Are you an Investor? A Lender? Have capital? Need capital? Got an idea? Are you a vendor? A seller? Want to sell your stores? Your Internet operation? Sell your portfolio?

LET ME KNOW! I’M BOMBARDED DAILY by Lenders, Operators, Investors, Buyers, VC’s, Hedge Funds and Entrepreneurs! Let’s explore together…

Here are a few in no particular order:

  • Serious $$ ($2M-$10M+) needs placement. Very smart, experienced operators are in demand! The financiers need YOU! ROI? Depends on the “deal,” the structure, the Team, the terms,the exit strategy…
  • Capital looking for opportunities. Know anyone with a SOLID team in place, not a start-up, already have substantial “skin in the game ($$) who needs capital $2M+ for funding PDL’s (no infrastructure build-out, no operations expenses to be paid with a new capital infusion), probably earn 2% – 5%/month or more depending on the deal/structure/equity?
  •  Brick-n-mortar buyers with cash! Want to sell? Fast?
  •  Internet biz buyers. Want to sell your Internet Biz/Portfolio?
  • Investors: 3rd Party Lenders in Texas! Huge demand due to disclosure requirement of Third Party Lender on new CAB License as of January 1st, 2012. Fully collateralized, 15-20% annual ROI is typical. Secondary challenge is the $25k net asset requirement per location – operators need help with this kind of operating capital too. There are over 3,500 Texas CSO’s and Texas is blowing up with business
  • Operator with 10 years+ experience, started Brick-n-mortar, now have $150K on the street via Internet. Looking for $100K – $500K in tranches strictly for funding PDL’s via the Internet. Strong Team!. Couple of state licenses currently..Ready to rock-n-roll!
  • So. California stores for sale.
  • Mississippi stores for sale
  •  Missouri stores for sale
  • Several other states with stores for sale
  • We have a “ton” of small, very experienced Lenders in PDL or car title all over the USA looking for expansion capital. For example, very small car title Lender in TX, 15 years exp. looking for $50K for funding. These are not start-ups. They just can’t meet demand nor can they access the banks. Boatloads of this scenario! Beautiful, tightly run store winning system and making money.
  • Tribes need access to capital to launch PDL operations, casinos, check cashing stores, infrastructure, training and more.
  •  Exploring the tribal/sovereign nation model? Need help?
  • Are you a compliance pro? An “in-the-trenches collaborator” capable of working with “crazy” payday loan entrepreneurs?
  • Need help navigating the Texas CSO>CAB transition?
  • Are you a seasoned payday loan professional looking for new opportunities? Are you a Lender in need of experienced talent? Our industry in cranking! Complete privacy assured.
  • Analytic savants needed. Everyone is working on their “secret sauce.”
  • Plenty more all over the map but I gotta go row! Newport Beach is BEAUTIFUL today!

Look, my phone rings off the hook all day! Some days I’m on it non-stop. (Actually I have 2 cells, a notebook, a laptop, a desk top, and iPad and an iPod!).I’m buried with the daily dynamics and opportunities in Lending. Call me 702-208-6736. Send an email Jer@TrihouseConsulting.com with your ideas/needs.

And do your research! Get up to speed. Figure out what you want to do in this PDL game. It’s INTERNATIONAL! Visit the DFC Global web site and listen to their last 10K! Look-up Zest Cash, Wonga, DebtResolve… They’re all discussed on my Blog.


Finally: A RESPECTFUL, short comment about our industry by a Banker:



Just getting started? http://paydaymanual.com/cash-advance-store.html


Payday Loans Are Like Coconuts? You’ve got to be kidding!

I love to talk about the loan shark… I mean payday loan and micro-lending industry. I’m lucky! I receive calls and emails from around the world.

So… I’m talking to Charlie B., a silicon-valley buddy of mine who’s been exploring the micro-lending space for a while. He begins to tell me about his trip to Brazil. I figure it’s another travelogue story and he’ll bug me about friending him on Facebook so I can kill my time looking at his pics. Next, he’ll insist I subscribe to his Twitter feed and follow his tweets through the Rio Airport.

BUT NO! Charlie has a coconut story to share! Yeah, COCONUTS!! (Hang-on payday loan fan, we’re headed your way!)

Charlie speaks Portuguese… has a wife from Brazil. (Probably another great story there but let’s FOCUS.)

Anyway, Charlie strikes up a conversation with a guy pushing a street cart selling coconuts. Having an interest in all things business, Charlie delves into the intricacies of a coconut street cart vending business. Turns out this street cart vendor got a job 15 years ago selling coconuts using a cart he “rented” from the owner of the cart. After about 5 years working the streets of Rio selling these coconuts, the vendor managed to scrape together $500 from savings, family and friends and he bought his own cart. Long story short, 5 years later, Charlies’ new “friend” owns 15 carts. He rents out 14 of them to his “employees” who are farther down the economic food chain. Over the course of the past 20 years, this street vendor entrepreneur has evolved from the bed he rented in a shack 20 years ago, to his own home and a car he owns today! He’s put his 4 kids through school…

Don’t worry Payday Loan Fan, I’m getting there! Sheesh!!

OK, here’s the BIG IDEA!!

Go to your local community college and talk to the professor who runs the web curriculum department. Today, all community colleges teach courses on building web sites/blogs. Tell her you have an “intern program” for a couple of her best students. You’re willing to pay a flat fee (say $300) and provide an opportunity for the students to enter the real world of commerce, work with a “real client” – YOU –  and build their portfolios. You want a basic site/blog set up enabled with Twitter, Facebook, Skype, yada, yada, yada…  NOTE: at this stage, I’m not talking about a full-blast data base driven, secured application page …. Rather, just a simple, elegant web site (Use WordPress!!) focused on local search and your specific community.

On this site, announce 5% of all gross profits will be donated to an entrepreneur IN THE LOCAL COMMUNITY to help them launch their idea into a business. Setup an account to contribute funding for this. Now the really hard part: Find a local homeless or economically challenged character in your community with an idea who you can serve and mentor. Help them take their idea to the next level. Enable this entrepreneur to LAUNCH. How to discover the right candidate? Get creative! Keep your eyes open. Tell everyone what you’re doing. Find your coconut pushcart entrepreneur! A taco vendor. An artist. A fashion designer. A student. A baby-boomer. Look around you! Place a POS (Point-of-Sale) piece in your store(s).

You, an intern, or a member(s) of your Team – an advocate – will write/Blog/follow up/Tweet/Facebook your efforts and your chosen entrepreneurs’ progress! Stay involved in the process. Advise, counsel, make introductions to a bank, the SBA, a wardrobe makeover non-profit, provide a phone, financial advice… whatever it takes! Do it!! Make mistakes! Evaluate! Adjust! Proceed… Fail. Start again!! Allow your employees and customers to comment on your web site. Enable them to add to the conversation. Make it easy. Encourage it. You probably have someone in your organization who already “gets” and participates in this “social media thing.” Have you identified someone on your Team who will not stop accessing Twitter and Facebook? This is your ADVOCATE! Give her a little direction and let her run with this project. Some negative comment is written about your company or our industry? Address it! Explain our side logically and straightforward. Keep your response civil, informative, factual, gracious and honest. Engage!

You’re a payday loan brick-n-mortar serving the local neighborhood? Then this is a no-brainer for you! Oh, you’re an Internet payday loan company? Look at your DATA! Where do the majority of your payday loan applicants originate from? Detroit? Miami? LA? Great!! Focus on a local oriented campaign/web site to accomplish this new imperative.

This is about INTENT! Your INTENT is to contribute to the community you serve; to make it slightly better. Do not grandstand this. Do not launch fireworks and make a grand announcement. Just allow this to go viral if it can. If it doesn’t? So what? Do it any way! You’ll feel GREAT! And so will everyone you touch.

The payday loan industry gets nailed every day by the media, consumer protectionists, regulators, our competitors (banks and credit unions)… even by our dogs.

And I receive calls every day from payday loan, check cashers and car title lenders who want to know how to improve their business, their marketing efforts, the pride they have in the Team they’ve built and the way we’re perceived by the world.

Don’t run from the light! Don’t scurry off into a dark corner every time our industry is maligned! OUR CUSTOMERS LOVE US! Don’t avoid the media and controversy! Embrace it! Leave the herd! Stand out and take a chance! Do it differently!!! We offer a valuable service, we help our community and we’re proud of what we do! Hell, we even create a few jobs!

NOW! Build your fund, hire your interns, and find your coconut entrepreneur! AND ENJOY YOURSELF!

Got an idea? Need funding? Have funding?
Call… Talk… Explore…


Payday Loan Future Trends? A Look at Our Future!

'Arcattack Electrical performance' photo (c) 2010, Chris Willis - license: http://creativecommons.org/licenses/by/2.0/The future is HERE! Want proof? Read below. When the big boys get it, could it be too late for the rest of us?

Got an idea? A solution? Need funding? Connections? Got a bolt of lightning locked up in your jar and need some help unscrewing the lid?

Call Me! Email Jer!
702-208-6736 PDT

Want a glimpse into the future of the payday, car title, pawn,stored value cards, and peer-2-peer (P2P) industry?

Here it is, from a Dollar Financial Press release: Dollar Financial Corp Changes Name to DFC Global Corp.

BERWYN, Pa., Aug 24, 2011 (BUSINESS WIRE) —

Dollar Financial Corp. (NASDAQ: DLLR), a leading international diversified financial services company serving primarily unbanked and under-banked consumers for over 30 years, today announced that it has changed its legal name to DFC Global Corp. A new logo accompanies the change. The Company will continue to trade on the NASDAQ stock exchange under its current ticker symbol “DLLR”.

Commenting on the name change, Jeff Weiss, the Company’s Chairman and Chief Executive Officer, stated, “The new name reflects the transformation of our Company from its origin in 1979 in the United States to what is now a global enterprise, operating in seven countries across North America, the United Kingdom and Europe. We feel this broad geographic expansion combined with our expanded product portfolio, which now encompasses secured pawn lending, consumer lending, small business advances, debit cards, gold purchasing, money transfer, check cashing, foreign exchange and many others, necessitated a modification to our corporate identity to more accurately reflect our continuing global expansion strategy and our diversified operating platforms.”

Jeff Weiss, continued, “Our products and services are squarely focused on what we call the ALICE demographic (asset-limited, income-constrained, employed).  The numbers of ALICE people are increasing all around the globe driven by a significant on-going shift within many of the more developed economies of the world towards service sector employment and lower paying jobs, as manufacturing and some other higher paying occupations are off-shored to developing countries where labor is less expensive.

In order to meet this significant un-met global demand, we expect to continue to invest in new technologies and sales channel strategies through both internal development initiatives, as well as the acquisition of new businesses, which will allow us to deliver our many products and services through the most convenient means our consumers are accustomed to, and comfortable with, in each market.

This collectively may include a “bricks and mortar” store based model, a global internet platform, the in-home loan servicing model widely used throughout Poland and  Eastern Europe, and other new technologies and platforms that we are either in the process of developing internally or are considering acquiring. I would like to thank our more than 5,000 employees now spanning seven countries, who through their dedication and tireless work ethic, continue to transform our Company into the world-class
organization it is today, as we strive towards our vision to be the first choice for financial services to the unbanked and under-banked consumers around the globe.”

So… like I said, the future IS HERE! Got an idea? A solution?  Need funding? Connections? Have money to put to work?

Got a bolt of lightning locked up in  your jar and need some help unscrewing the lid?

Call Me! Email me!!
702-208-6736 PDT

Read the entire Press Release here:
The Team at Trihouse Payday Loans
email us: Jer@PaydayLoanIndustry.com
http://paydayloanindustry.com/cash-advance-store.html Knowledge Store