THE BLOG

27
Feb

Idaho Car Title Loan Laws

By: Trihouse Consulting. Idaho has specific statutes that address car title loans. Article 9 of the Uniform Commercial Code applies. (U.C.C. 9-201 et seq.)

There are 3 specific formalities:

  1. There must be given value by both parties
  2. The debtor must have rights to the collateral
  3. There must be an authenticated security agreement

In addition to Idaho Article 9 provisions, car title lenders must include the following information:

  • Make, model and year of the vehicle
  • VIN and license plate number
  • Name, address and date of birth of the borrower
  • Date the loan agreement is executed
  • Maturity date of the car title loan agreement

Additionally, a secured creditor must “perfect” their interest to obtain priority over other creditors and purchasers, maintain perfection throughout changes in the collateral, the jurisdiction where the collateral is held, and the name of the creditor.

Article 9 enables the lender to repossess the car while avoiding any breach of the peace. Article 9 allows the lender to initiate an “Idaho Article 9 sale.” The borrower must be notified. The borrower is allowed to redeem their car if they pay off all the debt.

Car title loan lenders, per Idaho Article 9, must include a multitude of disclosures in each loan car title loan agreement.

  1. This loan is not intended to meet long-term financial needs.
  2. You should use this loan only to meet short-term cash needs.
  3. You will be required to pay additional interest and fees if you renew this loan rather than pay the debt in full when due.
  4. This loan may be a higher interest loan. You should consider what other lower cost loans may be available to you.
  5. You are placing at risk your continued ownership of the titled personal property you are using as security for this loan.
  6. If you default under this loan the title lender may take possession of the titled personal property used as security for this loan and sell the property in the manner provided by law.
  7. If you enter into a title loan agreement, you have a legal right of rescission. This means you may cancel your contract at no cost to you by returning the money you borrowed by the next business day after the date of your loan.
  8. If you believe that the title lender has violated the provisions of the Idaho Title Loan Act, you have the right to file a written complaint with the Idaho Department of Finance and the Department will investigate your complaint.

Along with these disclosure rules, the state requires that title loans be 30 days in length, but it allows them to be renewed automatically. There is no limit on the amount of interest a car title loan lender can charge for the loan, however it does limit the amount of the loan relative to the value of the vehicle. There are no limits on the number of times a loan can be rolled over (renewed), but Idaho Article 9 requires that on the third renewal of a loan, the debtor must make an additional principal payment and pay the interest due on the loan. The statute states:  “The debtor shall be required to make a payment of at least ten percent (10%) of the principal amount of the original title loan in addition to any finance charges that are due.”

If the debtor defaults on the loan, the lender is required to mail a letter to the debtor informing the debtor that “the debtor has ten (10) days from the date of the notice in which to cure the default.” Additionally, the statute specifically prohibits lenders from collecting any deficiency from the debtor personally unless the debtor prevents repossession, damages the vehicle, or commits fraud, the lender’s only recourse is to repossess the vehicle.

How to Start a car Title Loan Business: AutomobilePawn.com

19
Feb

Major ACH Announcement and Who Really Hates Payday Loan Lenders

By: Jer Trihouse. (Note – Major, positive announcement coming regarding dollar delivery systems.)

Our challenge today is a matter of perspective. The old ways of lending money are behind
us. In spite of all the bad press, the constant attacks, the unrelenting pressure put
upon our industry, the future is VERY BRIGHT for those of us who adapt to this new world.

Demand is only going to increase. A “globalization” of the middle-class is occurring.
It’s like a barbell; the wealthy on one end and the rest of the wage earners at the
other end. For lenders, there are some REALLY exciting solutions on the horizon!
I’m talking about NOW! Today!! For those of you in need of new, creative dollar delivery and processing alternatives, I’ll be making a major announcement SOON! Things are looking up!

[If you haven’t already, apply here for a private intro: ACH ]

Who Really Hates PDL Lenders.

I had lunch with a friend the other day. My friend owns 60+ locations in multiple states.
His first words to me were, “I hate internet lenders.” Now don’t you forget, I “cut my
teeth” with the store model. I still have equity in multiple brick-n-mortars. And, for
a little perspective, know that my friend – a really smart PDL guy – recently shut
down his internet lending company because he assembled the wrong

team. He lost his butt in the PDL internet game!

As a direct lender, have you ever thought about who really hates us? Our customers
don’t like the fees they pay us but few seriously hate us. The majority are extremely
happy we continue to survive and enable them to get some quick cash without a hassle.

Bankers don’t really hate us. They make money by providing capital to us and, up until
recently, they made loans to their checking account customers as well. Of course,
bankers do hate all the heat we’re bringing on them by NACHA, the FED’s and the state AG’s.

Believe it or not, there are more than a few regulators and
legislators who accept the fact that we offer a product that’s in
demand by their constituents. They recognize that payday lenders
make the experience of borrowing some cash from us for an emergency is
more akin to visiting McDonalds “where everybody knows your name” rather
than subjecting yourself to a “Spanish Inquisition” experience at a
bank.

Payday loan borrowers aren’t stupid: although so-called consumer
advocates would have us believe so. PDL borrowers are able to weigh
any alternatives and determine what’s their best loan product for their
circumstance; for their “problem.”

Our vendors and suppliers certainly don’t hate us. After all, they depend on us to
remain in business so they can prosper.

Sure, PEW, the CRL and a multitude of others attack us. But think about who funds
these organizations.

I was reading this piece today regarding internet gaming:

COALITION OPPOSING INTERNET GAMBLING BUILDING SUPPORT

By Howard Stutz

LAS VEGAS — A coalition seeking a federal ban on Internet gaming said Wednesday
it has gained support from 39 faith-based and conservative organizations.

The Coalition to Stop Internet Gambling announced the backing during a telephone
news conference. The organization, which is financially backed by Las Vegas Sands
Corp. Chairman Sheldon Adelson, claimed the membership of the 39 groups total more
than 1 million.

Among the groups are 11 different Faith and Freedom Coalitions, the American Principles
Project, the Network of Politically Active Christians, and the Universal Baptist Church.

According to a statement from the Washington D.C.-based coalition, the groups “come
together toconfront the many and varied threats posed by legalized Internet gambling.”

The coalition launched its first web advertisement on Monday.

Another group, the Coalition for Consumer and Online Protection, was formed
in direct responseto the Adelson-funded coalition. It was launched in an effort
to halt any congressional move to ban online wagering.

Interesting! Sheldon Anderson, a hugely successful “brick-n-mortar” gaming guy,
HATES online gaming. So, he funds coalitions to kill it. He views online gaming
as direct competition. He’s a long-time, entrenched, successful gaming
entrepreneur who seeks to destroy competitive internet startups.

Now, think about the payday loan industry. Any similarities? Have you ever
thought about the funding behind all the attack groups we face? And while
we’re on it, ever thought about who funds payday loan PAC’s, FISCA, OLA,
CFSA, your state association? Do they have our best interests at heart?
What about pawn associations, the buy-here-pay-here industry and all the
other potential competitors in our space?

The answer depends on your lending platform, your licensing model… YOUR perspective.

Have you ever had a politician appear in your office and said something
along the lines of, “I’d really like to understand your business and your
challenges so I can help you.” Then, as the politician begins to stroll out,
she turns around one last time and asks, “Now, how much can you raise in
contributions to help me help you?”

My point? You really a shark? Look below the surface. Everyone has an agenda.
Me included.

And don’t “hate” what you don’t understand. Our industry is experiencing total disruption.

What’s this mean to you? OPPORTUNITY! The entrenched are at risk of losing it all.
Embrace the internet, mobile, new dollar delivery systems,
social media, tech, collaboration… none of us has all the answers!

“Ignoring isn’t the same as ignorance, you have to work at it.”

Finally, I have some very exciting news to announce regarding ACH,
NSH, NOC and bank regulatory issues for Online Lenders using a
U.S. Bank(s)SOON!
NOTE: You can leave a comment without an email address. Just leave the fields BLANK.

Jer@TrihouseConsulting.com

14
Feb

Maine Payday Loan Industry Addresses ACH

By: Trihouse. Stop Online Lending in Maine?

A Maine Bill, L.D. 1691 to end the ability of online lenders to use the ACH system is moving to the full state legislature with the unanimous support of the state’s Insurance and Financial Services Committee.

The Bill, L.D. 1691, addresses the problem of unlicensed payday loans. Currently, payday loan online lenders access borrowers’ bank accounts through firms employing the  Automated Clearing House (ACH) system . Bill L.D. 1691 makes it illegal to process these electronic transactions that unlicensed lenders use to access borrowers bank accounts.  No one testified at the public hearing that took place for discussing Bill L.D.1691.

12
Feb

Hi! It’s Bobby From the US Post Office & You Owe Us Money

Post office payday loans“Hi, my name is Bobby and you’re going to prison if you don’t pay my client, the United States Post Office, their MONEY! Plus, we’ll cut-off your ability to buy stamps! And, we’ll sick the IRS on you. And…”

So Elizabeth Warren thinks it’s a great idea for the US Postal Service to loan money to the “underbanked.”

And this little ditty from The New Republic:

“One of the key messages of Obama’s State of the Union address is his willingness to bypass Congress to create jobs and reduce inequality. As luck would have it (Give Me a Break!) , a new government report detailed an innovation that would preserve one of the largest job creators in the country, save billions of dollars specifically for the poor, and develop the very ladders of opportunity that Obama has championed as of late. What’s more, this could apparently be accomplished without Congressional action, but merely through existing executive prerogatives.”

“What’s the policy? Letting the U.S. Postal Service (USPS) offer basic banking services to customers, like savings accounts, debit cards and even simple loans. The idea has been kicked around policy circles for years, but now it has a crucial new adherent: the USPS Inspector General, who endorsed the initiative in a comprehensive white paper.”

Wow! Doesn’t this motivate you to apply for a job in the new U.S.Postal Service’s Department of Lending?

I can’t imagine taxpayers funding these loans! Worse, the United States Postal Service is going to “partner” with banks; the ultimate “loan sharks.” These are the same banks who were charging their own customers $10 in fees per $100 loaned IF their customer had direct deposit? NO RISK LOANS!!

Add to this equation the call center collection personnel working out of India, Panama, Belize…! “Hi, my name is Bobby and you’re going to prison if you don’t pay my client, the United States Post Office, their MONEY! Plus, we’ll cut-off your ability to buy stamps!” And, we’ll sick the IRS on you. And…”

In order to pull this off, our federal government would have to provide clarity and federal direction regarding the 50 states. Why not do this now and allow entrepreneurs to figure out how to construct an appealing product and compete with one another? Why should taxpayers, the FED’s, the U.S. Post Office and banks collaborate and compete against private business?

Next, our federal government, in conjunction with consumer literacy groups, will decide the American reading level is not what it should be and launch a new enterprise to compete against Amazon. After all, the the Obama administration could subsidize iTunes, eBooks and movies easily with taxpayer dollars.

Be sure to check out Michael Brown’s thoughts on this matter over at CreditAccessBusiness.com. And if you’re interested in Texas payday, car title, installment you must make his acquaintance!

08
Feb

Payday Loan Sharks Eat Their Young-We’re All Swimming to the Last Life Preserver!

payday loan sharks

Payday loan sharks

By: Jer Trihouse. Guys, let’s get real! You manage to hook-up with an ACH processor in this environment? Shhh… hush-up, Man! Hold your cards close to your vest.

Your Team figured out a unique strategy for on-boarding a narrow demographic? You figured out a way to offer collateralized loans in a virtual world?  Your analytics guys determined that loans to zip code 48202 result in a 96% 1st time default rate? You outsourced your call center and you just spent $5K teaching them new scripts? Don’t blab your mouth off in the bar at the next OLA convention!

You want to survive this intense media, regulatory and consolidation reality we’re facing today? You gotta “secret sauce” that’s working for you; at least for the time being? Shut the F%&^&*K up!

Tactics working for you today, strategies enabling you survive this shitstorm we’re currently treading water in, whatever “magic sauce” you’ve got working for you to survive the next 12 months, need to be kept on the down-low. Tell Ep…  and you’re screwed! TranD, you’re dead meat. Infinn… fugetaboutit!!! PW? You’ll die the death of a thousand knives. Your lead aggregator? They’ll sell your ass down the river! Consultants? You might as well run a super bowl commercial that reveals your insides.

I hate this metaphor but it’s all I’ve got: We’re like a school of sharks ALL swimming to the same life preserver. Not a pretty site! It’s ugly and its raw. But, it’s the reality we’re currently in. As I my old friend and lunatic partner,  1-Eyed Jack used to tell me, “You’re either prey or your the perpetrator.” And the prey die an ugly, lengthy, painful death. You don’t want to be prey!

So… find your collaborators. Keep them close and your enemies closer. Bring it all “in-house.” Don’t get toasted in the bar at CFSA and blither away the wealth of knowledge and relationships you’ve hammered together. Get through this 6 months of pain and you’ll be rockin-and rollin again. I promise!

Scream, hug, call me the new wizard or set my wings on fire but at least I’m sticking my neck out there and trying hard to figure out our new  end game. Who wants to help?  Who among us comprends that 40M+ U.S. borrowers want our stuff! NOW!

The good old days are done@ Time to embrace the tech, twitter, pinterest, facebook, Buber, Paytoo, Dwalla, Zest, Wonga, Lendup… See the future or you will not be part of it. Of course, there may always be pot, e-cigs and bitcoins! All aboard… Give me some shitzke: Jer@TrihouseConsulting.com http://www.PaydayloanUniversity.com