THE BLOG

30
Sep

Washington State DFI Report Shortsided – Payday Loans

“Report shows Payday Lending Law is helping keep people out of debt” – All the Washington regulators did was shove Washington payday loan customers into the hands of unlicensed internet and tribal Lenders! The Washington DFI has no clue how many payday loan transactions are completed online. Nor does the DFI know the APR’s, the fees being paid…

Yes, the number of payday loan lenders with offices in WA have contracted. So… less jobs, higher commercial vacancy rates, less taxes paid and on and on. And, the DFI has enabled an unlicensed payday loan operator in Belize or Costa Rica or the XXX Tribe to gather financial data (SS#’s, bank acct. info…) about Washington state residents! Consumers everywhere WANT their payday loan.


28
Sep

Payday Loan Tribe Model Attacked

Jer Payday Loan TrihouseWe all know the payday loan – tribe partnership model is highly controversial. It’s a strategy being evaluated by tribes having considerable wealth, “poor” tribes lacking gaming success, and sophisticated payday loan Lenders with superior management skills. State Attorneys General, the Fed’s, legal counsel and our industry is watching this develop.

Ultimately, when constructed in a fashion that achieves the spirit intended, the sovereign nation model appears sound. If you’re interested in the tribe payday loan model, there is an interesting article here: EquityNews.info. We have not vetted all the data here so perform your due-diligence! Obviously, Equity News is not a fan of Scott Tucker, the payday loan industry, or “creative approaches” to satisfying the desire by consumers for access to our small, non-collateralized, short-term loans. (Of course, that doesn’t preclude Equity News from earning revenue by displaying ads for payday loans on their web site.)

And this won’t  be the first time I’ve been chided by my “brothers and sisters”  in the payday loan industry for continuing to shed light on offshore, choice-of-law, tribal and other controversial methods for offering payday loan products.

I continue to believe that open discussion about micro-lending will help regulators, legislators, the media and our industry find methods to serve the millions of consumers, around the world, who want and need access to our products and services.

What do YOU think? Leave a comment.
Jer@PaydayLoanIndustryBlog.com

26
Sep

Indian Loans-Indian Reservation Loans-Indian Payday Loans…

WOW! Interesting at least to me. This payday loan industry blog receives a LOT of daily traffic. I just happened to look at the top keyword searches. Here they are: “Indian loans-indian reservation loans-indian payday loans…” Our telephone inquiries and emails reflect this as well. There’s a TON of interest by Lenders, tribes, the media, hedge-funds, etc. If you desire specific information about the tribal – sovereign nation model, visit Allen Parker’s web site or call him at: 951-260-8149.

24
Sep

Banks, Payday Loans and Competition

  From Optirate, “Banks have the misfortune to be confronting the discounters just when marketplace and legal changes are drying up some of their traditional revenue sources, like packaging sub-prime mortgages and gouging people with overdraft fees. An economist at a bank regulatory agency (who asks for anonymity) estimates that $25 billion a year of bank-fee revenue is evaporating. That’s a lot for an industry that netted a pretax $104 billion last year.”

Hmmm… might be a partial explanation for the continuous attack on micro-lenders and the payday loan industry by banks and credit unions? Who do you think helps to fund our critics? It certainly isn’t our customers!

Read the article at Optirate in its entirety. Need for bank branches? Delivery of funds to smart devices? Lot’s of ideas to process…

18
Sep

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…
Jer
Jer@PaydayLoanIndustryBlog.com
702-208-6736