Tag: ACH for payday loans


California Bans ACH for Payday Loans

Bank for payday loan businessCalifornia bans ACH for payday loans? No worries! When 35 million consumers demand access to a product, entrepreneurs always find a way. There’s a fix for this! If you need an alternative to ACH, I’ve got it. Reach out. It’s cheap, proven and works. Jer@TrihouseConsulting.com It’s called Image Check Letter (ICL) and it’s a new, exciting way to enable nearly (no porn or pharmaceuticals) to easily collect payments. Want more info? Inquire about ICL Click Here.

ICL System: No deposits, 1-2 day clearing of funds, return notification in 1-2 days, no worries about return percentages, funds deposited directly into your account, and no worries about receiving a termination letter from your ACH processor.

“California will track consumers who take out payday loans and ban letting online payday lenders getting electronic access to customers’ bank accounts under a new regulatory proposal, according to American Banker.”

“The new rules would require payday lenders to secure loans with a paper check instead of electronic account access. That would make it much harder for online payday lenders to do business — but those lenders are typically much more expensive than storefront lenders and generate more fraud and abuse, and most online lenders don’t have state licenses, according to a 2014 Pew Charitable Trusts report.”

“A payday lender trade group, the California Financial Service Providers Association (CFSP), said the new rules “would have a high probability of forcing many or most” of its members out of the payday loan business. The group’s members are all state licensed, it said.”

“But a spokesman for the California Department of Business Oversight said that reducing online payday lending “may not necessarily be a bad thing. The spokesman, Thomas Dresslar, added, ‘The more the scope of payment instruments expands beyond paper, the more dangerous the market becomes for consumers. It’s not the storefront operations that are the problem. It’s the activity on the Internet.”


Same-Day ACH as a method for banks and credit unions to increase their margins and offer better customer service

Jer TrihouseFirst, The New York Times blasts the banks for aiding payday loan companies via the ACH system. Next, a highly regarded consultant (Serge Milman)  for banks and credit unions suggests “Same-Day ACH” as a “method for banks and credit unions to increase their margins and offer better customer service.” The Fed’s are looking into all of these incestuous relationships… The tribe “sovereign nation model” is coming on stronger than ever. And in spite of all this, offshore capital and their banks want a piece of the U.S. domestic small dollar loan market. (I know, I get the calls.) VERY interesting times ahead for those of us willing to enter the treacherous consumer loan industry.

Meanwhile, “same-day” ACH technologies are here! Internet lenders and store operators are making loan proceeds instantly available to their borrowers 27/7, including Saturday’s and Sunday’s.

Relative Cost Structures by Payment Type - Check, Credit, Debit, Wire, ACH