Category: payday loan collections

08
Nov

Payday Loan and Cash Advance Collection Tips

Posted by / payday loan collections

Another Debt Collector Charged With Fraud

Reminder, if you’re attempting to collect a debt, don’t tell the debtor you’re a police officer, a lawyer or any other government official.

AIG and youphoto © 2008 Seth Anderson | more info(via: Wylio)An Oklahoma headquartered cash advance company, Federal Cash Advance of Oklahoma LLC (aka CASHMAX, Fed Cash, TOPCASH, Cash Service Center) is alleged to have sent deceptive collection letters to debtors that contained a Dallas Texas County clerk’s office forged signature and bore the official seals of Texas and Dallas County. Allegedly, the letters also contained phony court case numbers and included inappropriate criminal allegations.

As a payday loan company performing collection activities, you must remember that unsecured debt is generally a civil matter and not a criminal matter. Apparently there are still plenty of us who don’t understand this! Do Not misuse the term ‘criminal prosecution’ to pressure payday loan customers into making their payments. These strategies are not legal.

In the case of Federal cash Advance of Oklahoma LLC, the notice letters illegally threatened criminal prosecution, referenced phony “case numbers” and cited fictitious criminal penalties of up to five years in prison and heavy fines.

The Texas Attorney General has sued a the payday lender that misrepresented itself as a government agency in some mailings.

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17
Jun

Payday Loans: No More Fear – 100% Guaranteed Collections

Posted by / payday loan collections

Here’s a “Quick Hit” about how you can get every single one of your payday loan customers to pay you back with a 100% guarantee for every loan your payday loan business makes.

100% Guaranteed Payday Loans

Have you thought about adding payday lending to your business?  Are you doing Payday Loans but not getting the return you deserve? Or, are you thinking about getting into the payday loan business but afraid of the losses and collections?

Allow us to 100% guarantee your payday loans.  Once we have approved a loan, if it goes “bad” just send the check to us and we will put the principle and interest back into your bank account.  You have your money from us within 5 to 6 business days and ready to put back on the street.

If  you are utilizing a collection company now:

* It typically takes 90 to 120 days for them to collect

* They generally collect less that 50% of the checks you submit to them.

* That’s 90 to 120 days you don’t have use of that money

* And 50% of your money you will never see again.

* How many times can you turn that money in 90 to 120 days if you had access to it?

Would you like to explore this? Email your contact info to explore

Additional payday loan collection resources:

This Newsletter probably received more responses than almost everything I’ve previously written about. (and we have over 4000 readers!)
https://paydayloanindustryblog.com/collections/
It’s heavily focused on collection tactics using some of the latest techie tools available.

I’ve written about some of the newest techie tools

Which bills a consumer will pay first. How different bills rank in consumers’ stacks, Get Your Customers to Pay You First:

How and why Text Messaging can help your Collection efforts INCREASE up to 25% or more and your payment defaults DECREASE by about 40%, as well as generate new leads and create repeat customers.

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25
Mar

Collection Strategy No-No for PaydayLoans, Car Title & Check Cashers

Posted by / payday loan collections

Collection Strategy No-No for PaydayLoans, Car Title & Check Cashers

In our industry, you’d better “get” collections. Comprehending Federal and state collection practices are crucial to us. After all, we’re really a “collections business.”

So… if you get anything out of this short Blog let it be this:

Bottom line, DO NOT CALL your customer at their employer once you’re told it’s unacceptable.

Case in point, a West Virginia resident Woman sues over collection calls at work

A  West Virginia woman claims she suffered “humiliation, embarrassment, mental anguish and emotional distress after a debt collection agency repeatedly called her at her work.”

Amy Wellman filed a lawsuit Feb. 3, 2010 in U.S. District Court for the Northern District of West Virginia against Martin and Seibert .

Wellman claims she began receiving phone calls from Martin and Seibert regarding collection for her debt in July 2009.

“When Plaintiff was first contacted by a representative of Defendant at Plaintiff’s place of employment, she requested that the Defendant cease placing telephone calls to her place of employment regarding the alleged debt,” the suit states. “Despite her request, Plaintiff continued to receive telephone calls from Defendant’s representatives at her place of employment. Plaintiff often hung up the phone on such occasions, but Defendant’s representatives would call back immediately thereafter. On numerous occasions Plaintiff reiterated to Defendant’s representatives her request not to be called at work too often explaining that calls of such a nature were not allowed by her employer.”

Wellman claims Martin and Seibert violated the Fair Debt Collection Practices Act and the West Virginia Consumer Credit and Protection Act by communicating with her at her place of employment and by continuing to call her with an intent to annoy and harass her.

In the two-count suit, Wellman seeks actual and compensatory damages, statutory damages of $1,000 for each violation of the FDCPA, attorney’s fees, costs and other relief the court deems just.

U.S. District Court case number: 10-CV-5

Just imagine this strategy being used by you in your business and a friendly class action lawyer getting a hold of you?

Don’t do it! Did you read our previous “Text Messaging Article?” There are plenty of methods you can employ to perform your collection efforts. Educate yourself and your team. Proper collections activities are micro-lending 101.

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16
Mar

Time to Use the Power of Text in Marketing and Collections for Payday Loan, Car Title…

Posted by / payday loan collections, Payday Loan Marketing, Uncategorized

It’s time to use the Power of Text in Marketing and Collections for Payday Loan, Car Title, Check Cashers, Pawn & More

Here is the how and why Text Messaging can help your Collection efforts INCREASE up to 25% or more and your payment defaults DECREASE by about 40%, as well as generate new leads and create repeat customers.

Our payday loan customers are inundated with “noise” from competitors and others screaming at them for their attention. Print, radio, TV, email, direct mail, billboards, phone calls, magazines… on and on and on. Every company in the micro-lending space is focused on our customer.

Now, it’s “Text Messaging” referred to as SMS. The explosion of cell phone use has brought the newest marketing and collection channel to us.

Personal cell phone use has become essential to virtually EVERYONE. All of us rely on our mobile device!

Mobile text messaging can connect you to your customer. Mobile text messaging offers a powerful alternative to all the other marketing strategies.

Those of us in the micro-lending space, that includes payday loans, car title lending, scrap gold buying, check cashing, rapid tax refunds, etc., must enter this mobile marketing and mobile collecting arena to communicate with our customers immediately.

The heaviest users of SMS are ages 18-34 at 80% and 35 -49 at 63%. Those are our demographics! 97% of all text messages are read!

So, what’s this all mean to us? INSTANT COMMUNICATION! SMS dwarfs all other features on a cell phone today!!

Reach your customer anytime and anywhere, with the Power of Text.

Why is Text Messaging SMS so successful?
More than 265 MILLION Mobile Phone Users
Easy to use
Available on 99% of all cell phones
Cheap
Instantaneous
Everyone has a phone
Direct link to your customer
Able to launch a web page
Specifically target messages to your customer
Messages to your customer are permission based; CAN-SPAM Compliant
Your customer can act on your message instantly
Present your customer with a coupon
Remind them of a payment due
Contest announcements
Announcements of sales, promotions and events

Additionally…

Text messaging is personal
Cell phone users keep their phones with them ALL THE TIME
90% of Text Messages are read within 8 MINUTES!
Bulk SMS is economical and you can send thousands of text messages to consumers at wholesale rates
One SMS message can be created and sent to a large group of customers
Tracking of SMS delivery and customer response is simple

It’s not uncommon to improve your collection efforts 25% or more by using SMS

A 40% increase in “on-time” payments is possible by using SMS to notify customers of their upcoming payments and appointments.

Transparent integration with your software is easy or you can use a web-based gateway.

Are you ready for more info to learn how you can get instantaneous communication with your customer AND increase your collection results?

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30
Jan

Payday Loan Collection Scam – Vultures on the Prowl

Posted by / payday loan collections

Payday Loan Collection Scams

If you’re one of the millions of payday loan consumers out there, BEWARE!

Collection company agents are scamming payday loan users out of their hard earned cash.

The Kansas Attorney General, Steve Six, reports that Kansas residents are complaining about collectors calling with claims that the consumer took out an Internet based payday loan and never repaid it.

There are unsubstantiated claims by residents of other states as well.

Some of these payday loan collection agents are posing as law enforcement officers! It’s not uncommon for these collectors to threaten consumers with jail.

Payday loan consumers should be aware that their is no debtor’s prison in America.

These scam artists often identify themselves as ACS, National Affidavit Processing Department and United Financial Crime Division. The calls may be originating offshore.

It’s not unusual for the payday loan collection agents to have the ability to provide their victims with personal data including social security numbers and bank account information; even computer IP numbers.

Western Union appears to be the preferred method of payment requested of the consumers.

If contacted, consumers should demand a written notice specifying the amount of the debt, the name of the payday loan company, contact information of the payday loan company, and validation of the debt.

We advise the consumer to immediately determine if the payday loan company is licensed in the consumer’s state! If not, do not pay!

One last point; our readers should not conclude that these collection scams are singularly focused on the payday loan industry. These vultures ply their wares in virtually every financial product offered in the marketplace today.

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How to Start or Improve a Consumer Loan Business: Storefront or Internet anywhere!

How to Start or Improve a Consumer Loan Business: Storefront or Internet anywhere!

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