How Big is the Sub-Prime Car Title Industry?

'Atlanta Title Loans' photo (c) 2010, Ken Teegardin - license: 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 to learn more.


Indian Owned Payday Loan Lender?

In the continuing battle between various regulators, native american indian tribes and payday loan lenders, we revisit the continuing saga of Martin “Butch” Webb, a member of the Cheyenne River Tribe. You may recall from previous Posts, Mr. Webb is accused of illegal lending and collection practices and dodging state limits on interest rates.

Mr. Webb is a legitimate member of the Cheyenne River Tribe and employs roughly 100 people. Webb’s payday loan lending activities are the only significant employer on the Cheyenne River reservation.

State and federal regulators question whether Mr. Webb’s Internet lending enterprises are truly tribal owned and operated for the benefit of the tribe or are they simply a ruse to circumvent state and federal laws. Additionally, Webb’s lending facilities are accused of violating federal fair credit and collection practices.

No one denies Webb is  an enrolled member of the tribe. The challenge by the regulators is that Webb’s businesses aren’t affiliated with the tribe. Webb argues that because his businesses are on the Cheyenne River reservation, they operate under the umbrella of sovereign immunity.

Opinions on this matter differ widely. Reporter Johnathan Ellis at quotes University of New Mexico School of Law professor Nathalie Martin, “If the lender is literally set up as a tribal corporation and it is the tribe itself, that’s what is entitled to sovereign immunity, not the person.” Of course, Webb and his attorneys with Katten Muchin Rosenman dispute this.

Read the piece in full here. Additionally, refer to Consultants4Tribes.comfor in depth commentary on this issue. Tribal lending and sovereign immunity lending models, much like online gaming, are tremendous opportunities for tribes to prosper. It’s only the beginning. Jer – Trihouse


Texas CSO – CAB Alert from Texas OCCC

The Texas OCCCC has received a request from Ann Baddour , Texas Appleseed, for ALL Schedule B Forms for licensed and provisionally licensed credit access businesses including the names of all CAB’s. The 3rd Party Lenders are at risk of exposure. The requester will gain access to names, addresses, phone number sand email addresses of 3rd Party Lenders.

We consider this information to be proprietary and confidential!

We advise all our Texas licensed CAB’s and CSO’s to submit arguments in writing immediately to:
Office of the Attorney General
Open Records Division
P.O Box 12548
Austin, TX 78711-2548
Hot line: 877-673-6839

Laurie Hobbs
Asst. General Counsel

Additionally, contact your legal counsel, trade organization, CFSA, FISCA & OLA.

Ann Baddour
512-473-2800 Ext. 104
Senior Policy Analyst
Texas Appleseed
1609 Shoal Creek Blvd. #201
Austin, TX 78701

Jump on this guys…
Jer – Trihouse



Payday Loan Company Dumps Consumer Financial Data in Dumpster Fined $101,500

'loan shark advertising on delivery truck' photo (c) 2009, Andrew Ciscel - license:’t let this happen to you! Whether you’re offering payday loans, car title loans, small dollar loans, installment loans or any related products, make certain you have a consumer data protection strategy in place and that all your employees are on-board with it.

Here’s the story from the FTC Press Release…

“Companies that Own and Manage Payday Lending and Check Cashing Stores to Settle FTC Charges That They Tossed Sensitive Consumer Data into Trash Dumpsters Will Pay $101,500 Civil Penalty.”

The FTC charged that PLS Financial Services, Inc., and The Payday Loan Store of Illinois, Inc., failed to take reasonable measures to protect consumer information, resulting in the disposal of documents containing sensitive personal identifying information – including Social Security numbers, employment information, loan applications, bank account information, and credit reports – in unsecured dumpsters near several PLS Loan Stores or PLS Check Cashers locations.  PLS Group, Inc., which owns PLS Financial Services and The Payday Loan Store of Illinois, was also named in the complaint.

PLS Financial Services and The Payday Loan Store of Illinois violated the FTC’s Disposal Rule by failing to take reasonable steps to protect against unauthorized access to consumer information in the disposal of credit reports.  They also allegedly violated the Gramm-Leach-Bliley Safeguards Rule and Privacy Rule, which require financial institutions to develop and use safeguards to protect consumer information, and deliver privacy notices to consumers.  Further, the FTC charged that all three defendants violated the FTC Act by misrepresenting that they had implemented reasonable measures to protect sensitive consumer information.

According to the complaint filed by the FTC, this is the third time the FTC has charged a violation of the Disposal Rule, which requires that companies dispose of credit reports and information derived from them in a safe and secure manner.

According to the FTC complaint, PLS Group owns approximately two dozen operating companies, such as The Payday Loan Store of Illinois, that in turn own and operate more than 300 retail stores in nine states under the names PLS Loan Stores and PLS Check Cashers.  These stores offer a variety of products and services, including payday loans, check cashing, automobile title loans, debit cards, phone cards, and notary services.  PLS Financial Services provides management services to the PLS Loan Stores and PLS Check Cashers locations, including establishing their policies and procedures for the handling and disposal of consumer financial information.

The Commission vote to approve the proposed consent decree was 5-0.  The Department of Justice filed the proposed consent decree on behalf of the Commission in the U.S. District Court for the Northern District of Illinois.  It was signed by the judge and entered by the court on November 1, 2012.

Read the original FTC Press Release against PLS Group and their affiliates here. Folks (as President Obama would say), this is a situation that you simply do not need to experience in your business. There are already compliance and licensing challenges to deal with. Put this issue to bed immediately.


FDIC Looks at Bank Payday Loan Styled Products

The Federal Deposit Insurance Corp. (FDIC) is reviewing bank payday loan styled products. As a result of a letter from Americans for Financial Reform, as reported by Matthew Kish Business Journal staff writer- Portland Business Journal, the FDIC sent a letter back to AFR indicating their interest.

Tom Unger, a spokeshole for Wells Fargo, says their program is different than a payday loan.   “It’s not meant to be a regular form of accessing credit,” Unger said. “It’s meant strictly for short-term emergencies.”   Unger said the bank also charges lower fees than payday lenders, according to reporter Matthew Kish.

Do these bankers really think we are that stupid? That the regulators at the FDIC are that stupid? Well… yes they do!

Let’s see. Every web site or store owned and operated by a state regulated Lender has specific language stating payday loans are meant for short-term financial challenges – ONLY. CFSA’s best practices insist this language be clearly stated or they throw you out of their organization!

Banks like Wells Fargo and U.S. Bank charge lower fees? Perhaps they do. It depends on the specific bank product and if all the bank account fees are lumped in with their payday loan product.

Know this! To qualify for a Wells Fargo styled payday loan, the borrower must have a bank account with direct deposit of the borrower’s paycheck into the account. The result? NO RISK TO THE BANK!! Wells Fargo is at the front of the line of creditors when the $$ are deposited into the bank account.

Know this also! Wells Fargo does NOT disclose the APR of their “short-term” payday loan product as does all payday loan lenders.

Frankly, I don’t care about any of this. I welcome competition from banks. Those of us in the payday loan space and kick the bank’s butts all the way to China. We offer competitive rates, speed, no-hassle, 24/7 small dollar loans. The banks can’t touch us!

Read Matthew Kish at Portland The Portland Business Journal: Read in full.
AFR Letter
FDIC Letter #1