THE BLOG

16
Aug

Scummy PDL Marketing Tactics: Continued

Posted by / Payday Loan Marketing

If this wasn’t so EVIL, I’d be jealous!

If you have a business website or are planning one, read on.

If this topic is too technical for you, forward it to your website developer! It’s a big deal if you’ve been hit!

Static HTML websites are dead. WordPress sites having responsive, mobile friendly capabilities are the direction for our loan industry.

I’ve previously written about Google’s Adwords policy regarding loan products.

Google has banned all loan products having >36% APR’s.

So…for those of us who were foolish enough to depend solely on Google Adwords to drive our loan transaction volume, we’ve been crushed.

UNLESS your Team has the talent to take advantage of this Google development.

The creators of 404 to 301 Plugin Redirect did!

“A 404 error is often returned when website pages have been moved or deleted.. If you care about your website, you should take steps to avoid 404 errors as it affects your search engine optimization [SEO] negatively. 404 ( Page not found ) errors are common and we all hate it, especially Search engines like Google and Bing! Install this plugin then sit back and relax. It will take care of 404 errors!”

Without getting too technical, the creators of 404 to 301 Plugin Redirect created a Plugin for WordPress websites that inserts the following code on your Homepage AND on an Exit Popup:

“Make Ends Meet With Payday Loans.”

“It is often very easy to face any financial emergency if you have adequate money to pay for them. But, this can seem all too impossible if you often live from one paycheck to another. How will you be able to pay for your urgent financial emergencies? Most often than not, you can’t. Face the reality, when your job is unable to pay for your financial emergencies, it is best to turn to payday loan providers out there.”
[rest of content removed including link to payday loans site]

NOTE: This evil tactic came to my attention because my Team runs several websites on WordPress platforms including eCheckSystem.com, Automobilepawn.com, PaydayLoanIndustryBlog.com.

What happened?

You run a website using a WordPress platform. You want to avoid 404 errors. You find a free plugin to enable your site to avoid displaying a 404 error. EXCEPT, this plugin advertises payday loans for your competitor!

Get rid of this Plugin! Today!

And be on the lookout for more dastardly tactics employed by your payday loan competitors.

Read the original article by Wordfence HERE: WordFence

14
Aug

TREND: Online Title Loan, Installment and Line of Credit Lending

Posted by / Trends & Tactics

More “Fintech” Lenders Enter the Online Lending Arena

Startups offering 100% online installment, car title and line-of-credit lending are receiving a LOT of attention these days. And NOT just by the CFPB.

VC’s, hedge funds, family offices and entrepreneurs are entering the alternative financial services space in droves.

Lending money using a car, motorcycle, RV or boat title as security has been around a long time. So has installment, payday and line-of-credit lending.

We’ve been making $2500+ loans in California since 1998. In the “good old days” we charged borrowers 15% – 30% PER MONTH on their unpaid loan principal.

Today – at least in Los Angeles – we get 6% – 8% per month. Still not a bad return! 96% per year… In Texas, payday, title and installment lenders charge 20% – 30% per month on the unpaid principal. Every State varies…

A $3000 California loan on a $6000 automobile yields $360/month to $480/month interest.

And, the borrower still owes us the $3000 loan principal.

So, when I hear about new “FinTech” lenders launching loan platforms offering borrowers title loans serviced 100% online, I’m not surprised.

Example? Finova Financial just secured $52.5 million in funding.

What does Finova Financial do? Cloud and mobile-based auto title loan lending. Basically, Finova Financial is marketing, funding and servicing auto title loans 100% via the Internet.

Who funded Finova Financial? 500 Startups, Refractor Capital, the founder of NerdWallet and a company based in the United Arab Emirates.

Is this really some unique, cutting edge loan platform offering title loans? Hell no!

As we’ve written about in our Title Loan Training Manual, there are already a number of online title lenders that enable borrowers to access, qualify for and receive funding for a title loan via the Internet. All done with no brick-n-mortar footprint!

Some of these business models offer title loans. Some offer installment loans. Others, like Finova Financial offer a hybrid title loan line-of-credit [LOC].

New players are entering the “alternative financial services” space every day; in spite of the noise coming out of the CFPB.

The potential profits and the HUGE demographic that these loan products appeal to is hard to turn your back on!

Money has been and will continue to be MADE!

Business Wire reports 70 million consumers pay $138 billion in fees annually for alternative financial products.

FOR SALE: Online Installment loan company in business since early 2015. State licensed.
$2.5 million out on loan
$400,000 per month in revenue
18% delinquency
3400 loans to date. Info? Jer@TrihouseConsulting.com

Finova claims they will focus on “social-impact, they will be providing up to 70% lower costs to consumers on Car Equity Line of Credit (C-LOC) with complete loan term transparency.” Finova Financial will not employ the typical 30-day loan principal due date forced on consumers by the majority of title loan lenders.

How-Start-Car-Title-Pawn-Business

Title Loan Biz

Finova Financial also claims on their website, “By providing an online lending platform that offers fast, affordable loans based on the equity in your car. It aims to deliver an online option to 70 million underserved Americans as well as 24/7 access to capital.”

Finova Financial is certainly NOT the first to enter this industry offering online servicing. Nor will they be the last. What they have accomplised is a PR event. They’ve made some noise, raised some money and assembled a Team.

Nothing anyone reading these words cannot accomplish!

You don’t even need to build the lending platform yourself! There are several quality “off-the-shelf” lending platforms available that enable a new lender to launch in a matter of days. It’s the same situation for consumer underwriting. There are a multitude of consumer underwriting platforms that easily integate with these same cloud-based and mobile friendly loan platforms. [I know them all!]

This is only the beginning!!! Consumers need money every day; since the beginning of time. Sure, we as lenders must always evolve, adapt, adjust, pivot, transform… develop new products… but we will never go away! Our customers need us and there is serious money to be made. After all, it’s not as if you’re buying a restaurant franchise and watching your produce rot! Your inventory is M-O-N-E-Y.

Questions? Help? Want to purchase a $2.5M installment loan portfolio having 3400 loans on the books? Jer@TrihouseConsulting.com

05
Aug

Open a Payday Loan Company

Posted by / Uncategorized

You want to start a small dollar loan business?

A payday loan or car title loan company for example?

Don’t overly complicate this.

How to start a payday loan business

Start a PDL Company

If they are legal where you live, simply visit a competitor offering the types of loans you would like to offer. Appy for an receive a loan. Borrow the minimum amount; say $50 – $100. Get copies of EVERYTHING. All the documents, take a quick picture of the loan charts on the walls. Take note of the licensing authority typically disclosed on the walls of this competitor as well. In the USA, Canada, UK… these consumer disclosures are mandated.

Then, take these docs home and reach out to the licensing authority for details on applying for a license. There is much more to this subject than can be explained here… consider our Payday Loan Startup Manual described here: Payday Loan Business Bible

And, if payday loan or car title loan companies are not legal where you live/work, consider offering them via the Internet. This is not much more challenging than opening a payday loan or title loan store. And of course, we thoroughly teach you how to do this in our “Bible.”

Questions? Jer@PaydayLoanIndustryBlog.com

27
Jul

PDL Business Intel: Get Your Competion to Spill Their Guts

Posted by / Trends & Tactics

How to get your competition’s employees to spill their guts!

Every installment loan lender, payday loan, car title title loan… consumer lending business owner needs information. As lenders in “the business of lending money to the masses,” I must know what my competition is doing!

I must know what’s working for other payday loan, title loan and installment lenders in my area!

Sit down with your competition’s employees and allow them to spill their guts.

How to “get the dirt” on your competition.

Try Craigslist.com. Run an ad.

How to Start a Consumer Loan Business: Installment Loans, Car Title Loans, Payday Loans, Consumer Loans

How to Start a Consumer Loan Business

Here’s a free template you may use to start:

Job Description

CONSUMER LOAN REPRESENTATIVE & AREA MANAGER

YOUR COMPANY NAME Loans is a short-term consumer finance company specializing in car title, payday loans and installment loans.

We are currently seeking a Loan Representative & an Area Manager to join our growing company and work in our YOUR CITY office.

We are actively recruiting candidates that are looking for a career opportunity with our company. We value the relationships we have cultivated in the communities we serve and expect our employees to be an example of honesty and respect when dealing with them.

YOUR COMPANY NAME Loans has a special approach to business and we only desire experienced candidates that can step up and work towards the exceptional customer service and image we represent.

Consumer Lending Daily Responsibilities to include:

• Providing customer service in person as well as over the phone.
• Processing loans and payments.
• Outbound collection calls.
• Managing defaulted accounts.
• Daily reporting.
• Daily deposits (no cash handling required).
• Handling heavy phone volume.
• General office duties.
• Marketing.

Job Requirements

To be considered eligible for our Loan Representative or Area Manager positions, you must meet the following requirements:
• 12+ months experience with a PDL/title lender (We guarantee we’ll be discreet).
• Excellent customer service skills.
• Computer proficient with full understanding of basic operating systems.
• Basic math skills.
• Excellent communication and organizational skills.
• Ability to multi-task and work in a fast-paced environment.
• Ability to handle heavy phone volume.
• Ability to advance and make serious $$.

Often, your competitors employees are unhappy. Why? Could be they have a crappy boss, maybe the commute is too long, often there is little opportunity for advancement, not enough money… any number of reasons.

So, by reaching out in creative ways to your competition’s employees, you can open a dialog with highly experienced, qualified personnel who are able to provide you with a much different perspective on your business and tactics that will increase your funded loans, improve collections, decrease first-time defaults… 

And, when I’m lucky enough to get a superior candidate, I often hire, collaborate or at least pay them a couple of hundred bucks for their time. It just feels right.

Thinking of starting a consumer loan business but you’re not sure of where to begin?

TrihouseConsulting@gmail.com

How to Start a Consumer Loan Business: Installment lending, car title loan lending, payday loan lending, personal loan business

Click This Image for Some Light Reading 🙂 Over Your Weekend!

21
Jul

ACH for State and Tribe Lenders-Google Payday Loans

Posted by / Google

Wondering why payday loan ads are still showing in Google Adwords?

[Now Available for tribe and state lenders: ACH, credit card payments, Image Cash Letters (ICL) and ACH transaction verification for NACHA compliance. 24+ banks signed on. Email Jer@TrihouseConsulting.com ]

I just checked my Google search results for “payday loan” on both my cell phones, my laptops, my desktop computers and my iPad. Payday loan ads are still showing. [Confession: I owe Check-N-Go roughly $12 because I clicked on their Google PPC ad. SORRY!]

Google delayed implementation of their new Google PPC adwords program an additional week. And, they’re “rolling it out” in a piecemeal fashion.

Here’s a link to Google’s official Policy Page: Google Payday Loan Adwords Policy.

In a nutshell, this is big brother Google’s payday loan guidelines:

  • When promoting financial services and products, you must comply with state and local regulations for any region that your ads target — for example, include specific disclosures required by local law.
  • Your ad may be disapproved for:
  • Failure to provide legitimate contact information for a physical location for the business being promoted
  • Failure to disclose associated fees
  • Failure to include links to third-party accreditation or endorsement where affiliation is asserted or implied, particularly when it serves to improve the reputation of the site

 

Personal Loans: Google defines personal loans as “lending money from one individual, organization, or entity to an individual consumer on a non-recurring basis, not for the purpose of financing purchase of a fixed asset or education. Personal loan consumers require information about the quality, features, fees, risks, and benefits of loan products in order to make informed decisions about whether to undertake the loan.”

  • Examples: Payday loans, title loans, pawnshops
  • Not included:: Mortgages, car loans, student loans, revolving lines of credit (such as credit cards, personal lines of credit)

“Advertisers for personal loans must prominently disclose additional information on their destination site or app.”

  • Your ad may be disapproved for:
  • Failure to provide minimum and maximum period for repayment
  • Failure to provide maximum Annual Percentage Rate (APR), which generally includes interest rate plus fees and other costs for a year, or similar other rate calculated consistently with local law. [What about tribe – sovereign nation lenders?]
  • Failure to display a representative example of the total cost of the loan, including all applicable fees
  • We want to protect our users from deceptive or harmful financial products.
  • We do not allow the promotion of:

  • Personal loans which require repayment in full in 60 days or less from the date the loan is issued (we refer to these as “Short-term personal loans”). This policy applies to advertisers who offer loans directly, lead generators, and those who connect consumers with third-party lenders.

High APR Personal Loans

  • “In the United States, we do not allow ads for personal loans where the Annual Percentage Rate (APR) is 36% or higher. Advertisers for personal loans in the United States must display their maximum APR, calculated consistently with the Truth in Lending Act (TILA).This policy applies to advertisers who make loans directly, lead generators, and those who connect consumers with third-party lenders.”

So… what about tribe payday lenders? What has Google decided is their fate?

PDF: 500+ Pages $150.00

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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