Banks, just like our industry, are getting more heat for attempting to offer payday loan products. From Richard Bluementhal, CT Senator:
“In the letter, the senators urge the Federal Reserve, FDIC and Comptroller of the Currency to stop federally regulated banks from engaging in payday lending and to prevent further expansion of payday lending before this predatory practice spreads”
Read the piece in it’s entirety here: Senators Request Federally Chartered Banks to stop Offering Payday Loans
Be aware! A lack of “capital” is not the challenge in our industry today. There is a “ton” of money looking for opportunities. What is lacking is specific expertise!
What “capital” desires is tech savvy, specialized knowledge, a strong Team having the ability to mitigate risk and avoid catastrophic failure at launch and the ability to innovate and implement new “twists” on the small dollar lending space. Please don’t think I’m referring solely to the Internet lenders. B & M’s offer many possibilities as well. Blended solutions make a lot of sense. The goal is simply to make it as easy as possible to enable our small dollar loan customers to gain access to our financial solutions.
Operations professionals having “in the trenches” experience in lead gen, scrubbing, call centers, LMS, collections, operations, branding, SEO/SEM/PPC/Organic, direct mail, offline marketing, legal counsel, portfolio management, mobile, strategies, tactics and on and on… are highly desirable and sought after today.
On those rare occasions when the “capital” also has expertise in one or more “slices” of this small dollar loan pie, it’s MAGIC!!
Few of us have the luxury of investing endless hours with Google searches, Linked In, Google+ and Facebook accounts, networking at yearly conventions, and searching for “experts” having hidden agendas. Want to explore? Jer@TrihouseConsulting.com 702-208-6736 My agenda? Putting people and solutions together to make money!
“It’s a long season and a small clubhouse.” Yogi Berra?
We’ve been using and evaluating payday loan software (LMS) since 1997. A lot of companies have come and gone. Still, there are probably 40 or more still in the “game” today. Prices vary from sub-$1000 to $10K and more for “off-the-shelf” payday loan solutions. You’ll spend much more on proprietary LMS.
I’m asked every day, “Jer, who has the best payday loan software?” I wish I could tell you but then, “You’d have to kill me.”
We have an entire chapter devoted to this subject in our “Payday Loan Bible.” Obviously, we want to sell our “Bible” in order to keep publishing this Payday Loan Industry Blog and to crack open the door for bigger consulting gigs. So, here are just a few things to consider:
Check out our “Payday Loan Bible” for more on this subject and all the pieces that will enable you to succeed in the micro-lending space.
Sponsored links: TrandotCom.com and eChecktrack.com
Delaware Payday Loan Short-Term Consumer Loan Limits and Database Requirement.
Effective January 1, 2013, Delaware licensed lenders will be able to make only five short-term consumer loans (sometimes called payday loans) in a twelve month period to any one borrower when the loans are made in the State of Delaware or when the borrower is a Delaware resident. This limitation was established by a new law that also changed the definition of short-term consumer loans to include loans up to $1,000.
To enable Delaware licensed lenders to comply with this law, the Office of the State Bank Commissioner has contracted with Veritec Solutions LLC (Veritec) to provide a database system that will allow those lenders to determine whether a consumer is eligible for such a loan.
The system will be available on January 1, 2013, and all Delaware licensed lenders making short-term consumer loans on and after that date must begin using this system. Prior to the end of this year, Veritec will be providing those lenders with specific information concerning the system’s use, including training schedules, registration procedures, and a preparation checklist.
Full Article here: Delaware Office of the State Bank Commissioner
The new regulations in the state bring these major changes:
For the full rules, please click on the following link: Delaware Payday Loan Regulations.
We all know that our peers and friends are our most trusted recommendations for products and services. The solar industry is relying on the fact that their best sales people are their current customers. Solar companies like Smart Power, Solar City and Sunwize Technologies are paying customers referral fees that approach $450 for sharing their experiences with solar and earning a referral fee.
Direct lenders in the small dollar loan niche – think payday loans, car title, “pink slip” loans, cash 4 gold, tax refunds – are joining the band and paying referral fees as well.
John M. with PrestaMe Cash Loan values a new customer acquisition cost at as much as $180.00. To pay a $50 referral fee to one of his good clients is a no-brainer! Should his new borrower get 5 loans during the next 12 months, each having a loan principal of $300 for 3 weeks at $25/per $100 loaned, Mr. Martin earns $375 dollars in fees from this new customer he paid $50.00 for.
Multiply that by 200 customers per month and Mr. Martin can smile all the way to the bank. Meanwhile, his customers are rewarded for helping their friends and family work with a fair minded payday loan company that helps them with their Obama imposed financial challenges. Jer@TrihouseConsulting.com
How to Start or Improve a Consumer Loan Business: Storefront or Internet anywhere!
