Bloomberg-Payday Loan Lead Generators

'Buzz Bee.BBM logo.500v382' photo (c) 2010, Pierre Rattini - license: http://creativecommons.org/licenses/by-nd/2.0/Carter Doughtery with Bloomberg wrote an informative piece on payday loan lead generators.

Internet Lenders MUST solve these issues regarding consumer trust, privacy and data protection or they’ll never achieve the velocity they strive for, nor the ability to take market share, from the “brick-n-mortar” stores.


Ultimately, the only consumers who will choose to enter a relationship with an Internet lender, be it a state-licensed, choice-of-law, a tribe, or an offshore operation – this is assuming consumers can even make this determination – will be those consumers who reside in a state that does not have safe-harbor legislation in place nor can the consumer drive across their state border to get one (very common!).


It should be pointed out that a current trend in the payday loan/micro-lending industry is that lead generators are evolving into lenders as well! Their margins are getting squeezed badly and the data-scrubbers are getting very efficient.



Nice job Carter and thanks for the reference! Jer – PaydayLoanIndustryBlog.com


Comments ( 5 )
  • Stanley says:

    Data leakage is a serious problem between lead gens and lenders. Bad actors skimming the ping tree. How else are the fraudulent debt collection scams accumulating so much detailed data about individual consumers?

    Lead gen has to find a way to truncate data for evaluation purposes and pass full records only after purchase.

  • Steve says:


    Good afternoon!

    I just finished reading Mr Dougherty’s article on payday loan lead generators. It was very informative!

    In your opinion, was is the likelihood that Senator Merkley’s bill to outlaw online payday loan lead generators will pass?

    Why not require lead generators to be licensed as an alternative, but to just wipe all of us out seems wrong! Maybe they should levy large fines on those companies that are fraudulent and/or abusive to weed them out.

    I really look forward to hearing your thoughts as to what you think is going to happen!!



  • Payday Loan Industry says:

    Certainly “doable.”

    The lending side is a whole new ball game. Lot’s of issues to confront. Software, licensing, ACH, scrubbers, capital, collections, call center…

    I would suggest a partner having the skills you lack.

    Be prepared to have sufficient capital for 6 – 14 months of “feeding” and developing your “secret sauce.”

    This is not for the feint-of-heart but can certainly be extremely rewarding!

    Jer – Trihouse

  • Franklin says:

    I’ve been making a lot of $$ over the years as a payday loan affiliate. This issue is worrying me! I’m attempting to partner with the most discriminate lenders in the PDL space. Additionally, I too would like to evolve into the lending piece.

    I’m thinking small; maybe one state to begin funding and continue to “offload” the apps coming in from the states I do not want to fund.


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