Payday Loan Lenders – ATM Fees – Overdraft Fees = 400 Percent APR

The payday loan industry is becoming more sophisticated and reaching deeper into their pockets in order to thwart negative payday loan legislation.

A link over at Nick’s PDL Industry Blog brought this to our attention.

Payday lenders are gearing up for an alternative strategy. The industry believes it has found new support in arguing that payday loans, with annual interest rates that can reach 400 percent, are a cheaper alternative to overdraft charges. The industry is citing a recent USA Today analysis based on data from Moebs Services, an economic research firm. According to the analysis, consumers pay an overdraft fee of $26.68 every time they overdraw their account. So if consumers overdraw by $100, they’d pay an annual percentage rate (APR) of 696%, if the credit is paid back in two weeks – compared with an APR of 450% on a $100 payday loan with an average fee of $17.25, according to USA Today.

“The focus on overdraft protection on the Hill has helped legislators to understand that payday lending can be looked at as a cheaper alternative to overdraft charges,” said Steven Schlein, a spokesman for the Community Financial Services Association, the trade group for payday lenders.


The Secret – Payday Loans – Car Title Loans – Scrap Gold Business – How to Get the Info You Need

The Secret – Payday Loans – Car Title Loans – Scrap Gold Business –
How to Get the Info You Need

The information and help you need for your micro-lending business
is there for the asking. You’ve just got to learn the SECRET!

Because we not only offer consulting and training but we actually
“DO” payday loans, car title lending, scrap gold buying and more…
plus the fact we dominate the Internet in these niches… we find
ourselves on the leading edge for micro-lending “how-to
information.” Got a new product or service for our industry? You’re
gonna contact us and let us know about it. After all, we get
hundreds of phone calls and emails each week from new and existing
operators looking for help. Any vendor, supplier, potential or
existing operator performing their due-diligence is going to bump
into us. So of course, we expect to hear from them!

And yet it astounds me how reluctant many payday loan and car title
lender entrepreneurs are to tap into the network of pros in our
industry. Just consider all the existing operators, vendors,
suppliers, national and state organizations there are, who are up
to their eyeballs in our industry. Every day these industry
insiders are fielding phone calls and emails, answering questions,
tracking down rumors, explaining their services and investigating
their competitor’s products and services.


Our training materials list dozens of ACH providers, payday loan
and car title loan software solutions, I.D validation services,
compliance pros, legal experts, industry trade magazines, insurers,
bond agents, investors, regulators, reloadable debit cards, web
site developers, Check-21 services, consumer account verification
services, collection data bases, fraud prevention, check cashing
solutions, Internet lending turnkey solutions, OFAC help, stores
wanted, stores for sale, call centers, collection/debt recovery,
debt purchasing, rapid tax refund turnkey solutions, and on and on
and on…

Whether you’re a potential or existing operator CALL THEM! Ask
questions. Don’t be afraid to tell them your situation! You’re
brand new to the business? Let them know. You’ve been in it 100
years? No problem. Payday loans, car title loans, scrap gold
buying… they’re all dynamic industries! New models, technology,
rules, associations, legislation and more are introduced all the

Look, you’re busy running your business every day. You can’t
be expected to remain current on every aspect of these fast paced
businesses. So… set aside an hour each week to reread our
training materials and place a few phone calls. Prepare a couple of
questions ahead of time AND WAIT FOR THE RESPONSE!

Remember the old saying, “We have two ears and one mouth”, so ask
your question and then shut-up and listen. This is an art that many
of us, myself included, need to master.

Now this is important! I’m not suggesting you pick up your phone
on a whim or shoot-off an email every time you you need an expert
opinion about some aspect of your business. These people have time
constraints just as you do. Again, do a little research on your
own, prepare a few questions ahead of time and then allow yourself
to digest their response. Make it clear where you are in your
discovery process and end with a gracious, “Thank You.”

*************Our Sponsor******************************************
Vendors and suppliers: Reach over 5000 readers:


You’re brand new to the industry and you need info regarding payday
loan software. Call a minimum of three vendors listed in our Payday
Loan Training Manual or our “Payday Loan Internet Report” and
arrange for a free demo. Prepare a list of open-ended questions for
the sales rep. Ask them and then simply sit back and listen. Let
her know you’re brand new!

We’re not going to cover every conceivable question but after
asking questions such as:

What features and benefits does your payday loan software offer
that your existing customer base most appreciates?

What states/provinces/counties due you currently have clients in?

Are you integrated with any ID validation services?

ACH providers?

Collection tools? Templates? Email integration?

Back-end accounting functions?

What other products and services will your software support?

Veritec integration?

CSO capability?

Web Based?

Lead integration?

NOW! Don’t hangup the phone yet! Ask for their thoughts on the
current state of the industry and about your specific
state/province. Ask them for the contact info for a couple of their
clients located in your geographic area. Ask them if they offer
clients of Jer and Trihouse Payday Loan Consulting a discount AFTER
you’ve already been quoted a price for their software solution. Ask
them about upcoming association meetings and conventions. Ask them
what they think it takes to get started in the business.

Finally, remember to thank them!!! And if you’re impressed with
their knowledge and helpfulness, let their boss know with a quick

Then, digest what you just heard. It’s rare (but possible) to find
an unbiased sales person. So… try to imagine what their agenda is
and weigh this when developing conclusions about what you were just
told about the industry and their product or service.

There really are some truly great and extremely knowledgeable
vendors, suppliers, and operators in our industry. Many of them are
specifically mentioned in our training materials. You’ve got to
learn to reach out to them and LISTEN!

Then, one day when you get that call from the “newbie” or seasoned
micro-lender asking for your help, remember!

Remember to give a little!!

Micro-lending is a profitable and fascinating industry. Now go make some MONEY!

Questions? Comments? Ideas?