Operation Choke Point Takes Another Hit

Operation Choke Point: It appears more legislators are recognizing the overreaching, draconian attempts by the Obama administration to shut down legal businesses they dislike. U.S. Congressman Luetkemeyer filed a bill, that “creates a new safe-harbor for financial institutions, including banks and credit unions, to promote nondiscriminatory access to financial products and services provided the merchant is licensed, registered as a money services business, or have obtained a reasoned legal opinion demonstrating the legality of the merchant’s business. The safe-harbor does not require a financial institution to do business with any merchant and does not place the burden of determining the legality of business with the financial institution.”

Visit the Congressman’s official website for details: Luetkemeyer Files Bill to End Operation Choke Point-Style Attacks on Private Sector


B.S. PEW Report, PDL Consumer Demand & Aljazeera Hack Job

The latest salvo attacking the payday loan industry refers to the PEW Report as the ultimate authority. In fact, this PEW Report is used as ammunition against the industry on a recurring basis. However, as Tim Ranney the CEO of sub-prime consumer credit bureau Clarity Services wrote several months ago in a NY Times Op-Ed, this “report” has major flaws.

“Clarity processes more than half a million report requests per day for consumers seeking many different types of credit. We have data in our systems on about 35 million non-prime consumers. The data tells us a story significantly different than Pew’s results. Pew’s data says that the “typical” payday loan consumer has an income of about $30,000. Our research tells us the number is slightly over $50,000. Pew’s research says that only 49% of the population using payday loans are employed, and our research indicates the number is about 82%. Pew’s results are based on such limited data [Pew based their results and conclusions on survey responses from about 450 consumers nationwide.], yet all of the results they claim are skewed in a direction that perpetuates the view that the consumer is always a victim. The data we see leads us to different conclusions.”

Clarity Services is NOT a lender. Do they have a dog in this hunt? Sure. Do I? Certainly. But, I still have to ask, why isn’t hard data gathered by resources having significant insight into lending and consumer demand referenced rather than academic reseachers and media whores with an axe to grind and an unquenchable desire to sway opinion?

Stupid me! This B.S they spout sells newspapers. Whoops! Sorry!! I mean page views and clicks and advertising and political donations and funds PEW and the Center for Irresponsible Lending (sorry for mis-spelling) and on and on. It’s simply safer to attack us. And, it’s more profitable.

Look, we all know the traditional payday loan product is dead. But that doesn’t mean our customer is dead as well. Here’s a screen capture of a cool tool I use called Goggle Trends. You’ll note that the search terms “payday loans” and “cash advance” are trending higher today than they ever have.

Payday loan consumer demand increasing

Payday loan consumer demand increasing

So, what’s my point? Same theme: demand for small dollar loan products are at record highs. Smart operators having significant talent and exquisite customer service will continue to prosper nicely. As I’ve written so many times over the years, “The future is ours!” So all you “old timers” who played in this game in the good ol’ days can either evolve or remain a crocodile and scurry about in the swamps.

1) In all fairness, Tim wrote his Op-ed piece in March of 2013. Here’s a link to his original piece: Tim Ranney  & to Clarity Services
2) Aljazeera, in their latest attack, labels Allen Parker as “The Sovereign Matchmaker, the middleman payday lenders need to find Native American Tribes.” Here’s the link: Aljazeera
3) The Pew “Report” I referred to is here: PEW Report
4) Want these alerts delivered to your Inbox? Monthly Newsletter


Texas OCCC CAB-CSO Webinar Registration June 2014

If you have ANY interest in Texas payday, car title and small dollar loans, READ ON!

My friend and collaborator, Michael Brown – he’s 100% focused on Texas – implores EVERYONE to register for the webinar organized by the Texas OCCC scheduled for this Thursday. As Mike says, “We want to drive registration hard this week – it’s important to show that our group of CABs is plugged into what the OCCC has to say and to encourage more OCCC communication down the road.

“As of this A.M. there are 41 registrants for the OCCC webinar this Thursday 6/26 at 2pm. We have got to get that thing fully booked, need 59 more to fully book it at 100. I sent this out to 160 of you let’s get it done!”

Here is the GoToMeeting registration link via Google’s URL Shortner:

Have employees, managers…your whole team register; that would be great. Please forward this email/Post to anyone who you may think could benefit from the topics, which are:

– Review of Licensing Requirements
– Review of the CAB Structure
– Review of Required Forms and Disclosures
– Review of CAB Quarterly and Annual Reporting

[Want these alerts delivered to your Inbox? Monthly Newsletter ]

Michael Brown
C.A.B. Consulting

Email Michael:
Call Michael: 214-293-8676
Fax Michael: 888-561-0986


Google Payday Loan Update Part 2: Spammy Queries & Websites

By: Jer Trihouse. Video: Matt Cutts Interview At SMX Advanced On Payday Loans. Here’s the video from SMX Advanced with Matt Cutts and Danny Sullivan. At 2 minutes and 30 seconds into their discussion, Matt talks about Google’s payday loan update (part 2), spammy queries (IE: “payday loan debt consolidation” or “payday loan casinos”).

So the big question? Who among us is going to get hurt the most? If your formula for success relies on spammy queries and spammy websites, you’re going to be crying soon!

To immediately access Matt Cutt’s remarks about the Google payday loan algorithm update, advance the video to 2min. 30 secs. And as always, if you have a payday loan or car title business and need help fathoming the challenges of search engine positioning and smart phone marketing to increase your revenues, study our training courses offered here: Car Title and Payday Loan Courses.


Texas Organization of Financial Service Centers

Texas Organization of Financial Service Centers TOFSC] News: Michael Brown takes the helm!

As of June 1, 2014 Michael Brown of CAB Consulting  is managing the Texas Organization of Financial Service Centers (TOFSC) .

Michael and Clay Chancey [Clay enables lenders to add a robust pawn business to existing businesses] are working closely with one another to assure a smooth transition of TOFSC.

Michael Brown stated, “The future is bright for TOFSC! The organization will continue to communicate time sensitive developments in the small dollar loan industry on a frequent basis and provide a platform for Texas CABs to interact with one another. TOFSC focuses on the needs of members, regulatory issues, community involvement and profitability for lenders.”

TOFSC immediate focus:

  • Increase membership and mobilize the group.
  • Provide frequent and meaningful communication.
  • Discuss innovative ideas and trends.
  • Surviving City Ordinances.
  • Increase communication with the OCCC.
  • Open forums and CAB Q&A sessions.
  • 2015 Texas Legislative session preparedness.
  • Community involvement.
  • CFPB Communications and Developments.
  • Vendors you need to know about.
  • Strategic Partnerships.
  • Capital and Third Party Lenders.

IMPORTANT: Join the OCCC Webinar June 26th. Sign-up here: CAB

Contact Michael with questions, comments and new member inquiries: 214-293-8676 or