ZestCash At It Again: New Credit Technology = State Expansion

Interesting Post at Bank Technology News regarding Zest Cash Expansion in more States and implementation of technology to fund more consumers.



Jer Ayles ayler Trihouse Payday Loan ConsultingIt’s not too late to register for the CFSP California Financial Service Providers Convention in Coronado, Calif. It’s May 6 – 8, 2012.  You want to know the latest regarding trends, tactics, compliance, regulation… ? Register Now! Even better, this year it’s at the beautiful Loews Coronado Bay Resort and Spa!

I’ll be there. Call me at 702-208-6736 (Cell).  Email


Payday Loans-Offshore-Tribe-State-by-State, Call Centers, Licensing

As those of you who receive my Monthly Newsletter know, the past 30+ days I’ve visited Cancun Mexico, Miami, the Bahamas (Nassau) and, as I write this, San Jose, Costa Rica. All of these fact-finding trips focused on various payday loan licensing models and outsourcing of various integral pieces of payday loan operations to service payday loan consumers and develop strategies to profit in our industry.

I always get some “heat” for discussing these issues and strategies! Some of us are making serious money in the payday loan space and want to “keep it a secret.” Others already in our space worry that the  CFPB and State  AG’s will become aware of our methods and “attack”us. (DUH, they know we exist and when setup by pros there is zip they can do. Just follow TILA, FDCPA, disclose everything clearly and don’t beat on your customers!)

Operators with brick-n-mortars are sometimes envious of the perceived simplicity and low barrier to entry into the Internet payday loan space. Many Internet operators sweat out state/provincial licensing approaches.  Then you have all the brick-n-mortar players who think because they have a solid management Team in place it’s a simple transition to the internet. Nothing could be farther from the truth!

Store-front expertise doesn’t mean jack when attempting to build a successful Internet payday loan operation! I’ve seen very experienced store Teams fail miserably at managing Internet portfolios. You need a much different skill-set and some experienced partners when you have to rely on buying payday loan leads, providing round the clock call-center services, collecting $500 from a consumer in default 1000+ miles away from you, re- marketing to your existing customer base, taking market share away from your competitors, being compliant with all the State/Federal/Provincial laws and regs, getting your payday loan software provider to respond to your requests for support, maintaining a <1% charge-back ratio with your ACH provider and dealing with all the other hassles and risks in the payday loan industry. And let’s not leave out your Search Engine Optimization, Search Engine Marketing, Adwords and Bing account managers and on and on and on.

Why do it? The money! Done well, I know of very little else offering the ROI of payday loan businesses.

You don’t have to have all these skill sets in-house. Find “partners” and vendors that provide the pieces you’re missing. It’s one thing to buy 50 leads/day, and fund 10 of them. Depending on your lead source, your under writing criteria, and your collections Team, this could be accomplished in a small office anywhere using any off-the-shelf software.

But to reach serious velocity, and we estimate at least 325,000 payday loans occur daily just in the  in the U.S., you must evaluate what you bring to the table (capital, legal, marketing, collections, IT, call center expertise…) and create your “secret sauce.”

I’ll follow up on these issues shortly. I’m  wrapping up a convention focused on offshore based payday companies using call centers, lawyers, taxation pros, bankers and financiers and more in Costa Rica this week. These are pros from around the world. The tribes are well represented as well and offer some enticing, sophisticated “boiler plate” that can enable you to reach your goal.

Do you want to thoroughly understand the tribal/sovereign nation model? It’s basically the Texas CSO payday loan business model. The strategy is to employ a “servicer/marketer” and a” Lender.” Read our highly popular CSO/CAB Report and you’re on the road to understanding the payday loan tribe model. Get this… It’s the last item we offer here:

And don’t bother to start harping on tax evasion. These business models incorporate methods and strategies to service consumers around the world including The U.S., Canada, AU, Mexico, Scandinavia, Europe, The UK and many more locales. Cost reduction and tax minimization are the goals – just like Google, Coca Cola, IBM, Microsoft and more.

Finally, regarding all you guys that think it’s too late to start a payday loan, car title, scrap gold buying, tax service and more all under one-roof, complementing one another, quit crying! I speak with very competent, multi-unit store owners who are salivating over what they perceive to be a tremendous growth  opportunity.

You want to finally get off the dime and start playing in the ruff and tumble payday loan industry?Put some smart guys together in a room, and build a Team with complimentary skill sets to achieve the dream and IT CAN STILL BE DONE! Pay for solid experience to guide you, find the right vendors to help you down the path and you too can attend Payday Loan – micro-lending conventions around the world on the Governments dime – seek legal counsel :o)




Pennsylvania Payday Loan Law Update

Pennsylvania payday loans on the way… look for this to become a reality in many of the “dark States.”


DFC Global (Payday Loans, Pawn) Borrowing $200 million at 3.25% senior convertible notes due 2017.

DFC Global -DLLR- is getting their hands on $200 million dollars at 3.25%! Yeah, the notes have a convertible feature with a 21% premium but geez Louise! My clients and I have to pay 2% – 3% A MONTH for capital to put on the street.

From the Press Release:

The notes will be unsecured, senior obligations of the Company and will pay interest semi-annually at a rate of 3.25%. Prior to October 15, 2016, the notes will be convertible only upon the occurrence of certain events and during certain periods, and thereafter, at any time until the second scheduled trading day preceding the maturity date. Upon conversion, holders will receive cash up to the principal amount and shares of the Company’s common stock in respect of any excess conversion amount. The initial conversion rate for the notes is 46.8962 shares of common stock per $1,000 principal amount of the notes, which is equal to a conversion price of approximately $21.32 per share, representing a 29.0% conversion premium based on the closing price of the Company’s common stock of $16.53 per share on April 10, 2012. The notes mature on April 15, 2017.