Category: Uncategorized

29
Mar

Marketing Ideas, Capital and ACH for Payday Loan and Car Title Lenders

Payday loan marketing ideas

Social Media Marketing World

By Jer Trihouse. I just returned from the Social Media Marketing World extravaganza in San Diego. 3 days devoted to marketing tactics and strategies for payday loan and car title lenders – No not really! All industries were represented. Man, it really pays to step out of your comfort zone by sharing ideas and learning from experts in industries other than lending. I must admit that on more than one occasion, when I responded with candor to the question, “So Jer, what do YOU do,” my response was not always met with admiration. On the other hand, on several occasions, I found myself in the middle of some large groups of fascinated listeners.

Over the next few weeks, return here to for some revolutionary ideas for using Twitter, Facebook, Pinterest, blogging, mobile websites, SMS, and much more to ramp up your transaction volume for your alternative financial services business.

And of equal importance, I have another ACH processor for tribes and offshore lenders plus “serious” [$5M minimum] capital available for well established lenders. This is “real” so do not waste one another’s time!

Jer@TrihouseConsulting.com
702-208-6736 [My phone rings off the hook. It’s my cell. Text or leave a message if you miss me.]

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24
Mar

Payday Loan, Installment Lending & Direct to Merchant Disruption

Jer Trihouse

Jer Trihouse

By Jer Trihouse. The small dollar loan space is undergoing monumental change. It’s time we step back and remember what our borrower’s goals are. They want money, right! But what’s their next move? To pay a merchant for a service or a product? Maybe pay a bill?

In case you missed this, Max Levchin has entered the lending space. A co-founder at Paypal, Max launched Affirm.com last year. In effect, Affirm provides consumers with 30 day loans to enable them to purchase goods and services from merchants. Affirm offers payment solutions for a wide range of online storefronts across the U.S. Affirm employs Facebook for authentication of borrowers, and uses  other social and data signals to assess risk. Other data Affirm will be using range from incomes per zip code and a user’s mobile device ID. Affirm then guarantees payment to merchants — who pay Affirm a fee — after this underwriting process.

“We are trying to get as close as possible to one-click, which has always been the case on the desktop,” said Levchin. “In mobile, it has become an imperative to be able to buy it now or you lose a customer quickly.”

“You will essentially be putting a purchase on a digital tab, and we’re going to make it work for us by looking at all available data to determine if you are someone who will pay it back,” said Levchin.

Like any credit card, consumers will have 30 days to pay their bills. Affirm will not charge consumers for the service. In addition, he added, the “overwhelming transformation of everything toward mobile shopping changes all the fundamentals.”

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18
Mar

Payday Lending Big Data + New ODFI’s and ACH Processors

Payday Loan Industry

Payday Loan Industry

By: Jer Trihouse. Sub-prime underwriting techniques have evolved dramatically with the entrance of Silicon Valley financed lenders “LendUp,” “ZestFinance,” “Wonga,” and “Think Finance.” Heavy hitters like PayPal founder Peter Thiel, Douglas Merrill and venture firms Sequoia Capital and Google Ventures are making inroads with the 60M+ borrowers seeking payday loan styled products.

Back in 1998, when I opened my first payday loan store in California, our only option was Teletrack. Teletrack focused on aggregating data submitted by brick-n-mortars. If all your local competitors used their service, Teletrack was effective for evaluating your risks and collecting on your defaults down the road.

Today, we have CoreLogic, Clarity, DataX, Microbuilt, Factor Trust… all providing payday loan lenders with tools to evaluate our loan applicants and collecting our money. Add to this tool arsenal, “Big Data.”

Lenders are evaluating a borrower’s Tweets, Facebook updates, Pinterest activities, LinkedIn profile, how much time a borrower spends on a lender’s application page, does a borrower use all CAPS to fill it out, does the borrower jump directly to the $5000 loan principal vs. the $500 loan without reading the “T & C’s” and more.

A few payday loan lenders offer better loan rates to borrowers who sign in to a lender’s website with their Facebook or Twitter account.

Analyzing thousands of data points in less than 3 seconds is now the norm. Add to this the ability to access a borrower’s rent and utility payment history and one would expect fees charged to borrowers will decline. Ah, but don’t jump to this conclusion! In today’s economic environment, few borrowers evaluate fees and rated charged for their loans. Of primary importance is how quickly can the borrower access money with the least amount of hassle. The costs are secondary in importance.

Lenders charge what they can. Borrowers just want emergency money FAST. Rate competition is rare. Particularly after the disruption that’s taken place in the payday loan industry beginning last August.

NOTE: If you’re a lender who has been forced to sit on the sidelines because you’ve “lost” access to your ACH provider, contact Jer at 702-208-6736 [jer@TrihouseConsulting.com] If you’ve “lost” your bank account, contact Jer. There are new ODFI’s and ACH providers ready to serve you. To get the ball rolling quickly, GO HERE: Request for Information. AND, if you represent an ODFI with an interest in the PDL space, reach out to me! It’s a $60B (US) industry.

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13
Mar

California Payday Loan Proposed Rulemaking by DOB

By: Admin at Trihouse Payday Loan Consulting: The STATE OF CALIFORNIA – DEPARTMENT OF BUSINESS OVERSIGHT is seeking consumer and industry comments on proposed rulemaking relevant to the California payday loan industry. The California DOB is accepting comments until May 6th. It’s critical that our industry provide insight regarding the impact and acceptance of these proposed rule changes. Our “haters” have been very active!

INVITATION FOR COMMENTS ON PROPOSED RULEMAKING UNDER THE CALIFORNIA DEFERRED DEPOSIT TRANSACTION LAW

[NOTE: This was brought to my attention by the law offices of San Francisco based Paul Soter. Paul specializes in providing legal counsel for lenders in Calif.]

BACKGROUND

The Department licenses and regulates deferred deposit originators, more commonly known as payday lenders, under the California Deferred Deposit Transaction Law (Financial Code section 23000 et seq.). The Department is considering various changes to the regulations under the California Deferred Deposit Transaction Law and prior to initiating formal rulemaking, recently sought comments on these changes from  interested parties [see Invitation for Comments on Proposed Rulemaking Under the California Deferred Deposit Transaction Law (PRO 04-08), dated May 29, 2013].

Among other things, the potential changes would authorize a licensee to use electronic fund transfers and prepaid debit cards offered by licensees to provide the funds from transactions to customers and to collect payments from them, but would not permit a licensee to use a customer’s debit card, prepaid debit card or credit card in conjunction with a deferred deposit transaction.

QUESTIONS UNDER CONSIDERATION

The Department received a number of written comments on the proposed changes. Some of the comments have offered insights that may suggest the need for further consideration and therefore the Department is requesting additional information. The Department is also seeking specific information on the potential economic and cost impact to businesses and consumersContinue Reading..

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04
Mar

Job Posting: Director Of Product Development for Loan Products

Director of Product Development Position Available Immediately

We have an exciting opportunity for the right performer! Don’t get hung-up on the “title.” If you’re a fit, you can call yourself anything you like! 

Our client, an established online lender (not a startup) is looking for a “Director of Product Development” to launch a new division. A primary goal is to transition to a state-by-state licensing model.

The candidate must have at least 5 years of on-line/short-term lending experience and must be an expert in development and implementation of processes and procedures for state licensed lending. The “Director” will work with legal counsel to keep abreast of changes in laws & regulations affecting all functional areas of the business. The ability to effectively work with compliance personnel, operations, legal counsel and IT is imperative.

Responsibilities include:

  • Creating, implementing and managing loan products for state licensed short-term lending. Includes staff training, policies, procedures, and compliance requirements.
  • Monitor and review regulatory and legislative changes; advising management of the operational impact of trends and changes. Facilitate implementation of new and regulatory changes as necessary.
  • Centralize and maintain oversight of new division’s policies, procedures, and training documents.
  • Work with call center management to improve processes and achieve strategic plan.
  • Review and assist in revision and development of loan agreements, disclosures and marketing materials.

Requirements include:

  • Detailed knowledge of on-line lending which include operations and regulatory experience.
  • A minimum of 5 years of related work experience.
  • Proven track record of designing and implementing on-line lending products/strategies.
  • Experience developing policies, procedures and training programs.
  • Technical knowledge of lending products including underwriting, operational processes and services.

Additional details:

  • Compensation open and determined by candidate’s knowledge and “fit.”
  • It’s highly likely relocation to the Mid-West 🙂 will be required.
  • Relocation expenses provided.
  • Need is immediate.

NEXT STEP: I need your contact info. Click here: “Director of Product Development.”

Jer@TrihouseConsulting.com

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