Finding Opportunity Within a Negative Report on the Payday Loan Industry:

As a small dollar loan operator, it’s a great idea to look for and carefully review these types of attack documents.


They are often used as ammunition by consumer groups, and/or government to shift legislation.  You better know what’s being said about you.

They sometimes have information that’s useful to you.  For instance:  This particular report talks about how the loans are being “sold” to consumers.  AS an operator, it’s important to EDUCATE your customer and offer a solution to their problem.   It also presents an opening to communicate to you existing customer, your potential customer, and the world how professional you are.

This report focused on four areas that are causing trouble for the industry.

1:  Advertising that focuses only on getting the loans, and promoting rollovers.

2:  Communication with the customer that doesn’t clearly explain that it’s much cheaper to pay off the entire loan, as opposed to encouraging rollovers.

3:  Hard Collections:  Many in the industry are using predatory collections.  This is the #1 source of consumer complaints.

4:  Identity theft.  This is a growing problem as the fraudsters are become more sophisticated.

I would even PUBLISH this report on my website, with my comments and responses written in RED ink.  All to demonstrate how OUR company does things differently.

Let’s look at one at a time:

1:  Your advertising should focus on the SOLUTION you are providing.  Don’t get caught in a game of comparing interest rates.  What we’re really doing is helping to keep people from overdrafting their bank account.  That’s the evidence you post.  “Our service will deposit $300 into your bank account.  Sure.  Our fee may be $90.00.  BUT, it’s going to be a lot cheaper than the 8 NSF charges the bank is going grind you with.”

2:  Clearly communicate to your customers.  Do it in writing.  Do it in a video.  Do it on your website.  Do it in mailings.  Do it in emails.  Make sure your CSR’s are all trained and complaint.  Use simple language.  “Here are your three options:  First you pay off the entire loan plus the fee.  Second, you can pay the fee, and pay DOWN the loan balance.  Finally, if you’re a little tight, then you can pay the fee only.”

3:  Hard collections:  I think there is a time and a place for this approach.  But I think it should be used about 1% of the time.  Your goal should always be to re-habilitate the customer.  Establish a pattern of payments, even if they’re small.  Be careful WHO you sell your bad debt to.  They will get you dirty.  Not worth the trouble to have 500 phone calls of complaints to the local government agency.

4:  Identity Theft:  Find the best vendors to verify your data.  Then let people know HOW you are protecting them.  Let everybody know that you are using the latest technology, and security to keep their private information safe.

For a SMART operator?  These reports are a GIFT.

Be GREAT out there.

Cheers! Miro Posavec

Copy of the report:







This is an extensive study done on Payday Loans in the U.K. .



FUND your payday or title operation

How important is it to have Capital available for your payday loan business?

When I started out (1999), I took over an existing payday loan/ check cashing store. I had no idea of how much money it would take. After taking over the location, I had some savings left, and my budget was to put out an additional $10,000 in new business every 6 months. Within 3 months of being open I had used up all of my savings, my credit cards, and had taken out loans on my cars.

I was turning away 4 out of every 5 customers. It killed me to turn away extremely qualified people. I would tell new customers to come back on Saturday, as I was waiting for the revenue from the fees.

I went to the local bank, and they flatly refused to provide me with funding. The didn’t like the business, they didn’t like that it was a new business. And they probably didn’t like me either. (Although I can’t imagine how that could happen.)

Having no choice at the time, I took on an investment partner. Now, I’m not complaining. With HIS capital investment, the one store became FIVE stores. From the revenues of the company, we were able to acquire other businesses. We bought Real Estate. Over the course of our 10 year relationship, we made a lot of money.

Going back in time, if I had an opportunity to get that initial $150,000 from a BANK, instead of a partner. Wow. I would have kept over $2,000,000 of NET profits in my own pocket. AND I wouldn’t have spent a year FIGHTING for control of the company I started.

Partnerships are great when they are working, but it’s HELL when they’re not. IF this program empowers YOU to move forward without driving around and begging for money? Wow. It’s life changing!

The biggest challenge in business is to obtain ENOUGH funding, at affordable rates, in a structure that makes sense for everybody involved.


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A Case Study in Unconventional Marketing: Loans

When we talk to operators, I always push UNCONVENTIONAL marketing.  Getting solid, well paying customers is hard.  Doesn’t matter if you have one store, or you have a HUGE call center and only work online.  The trouble and COST of customer acquisition is a huge part of your business challenge.

This past weekend, I stumbled onto a SWEET little marketing idea.  I’m going to show to you in this video, and I go on about how the guy could have taken it a few extra steps.  But I’m NOT being negative.  This was a cool idea, and I have to give all the credit to this small operator.

Watch and learn.  How can you apply this to your operation?

 How can you reach out through these unconventional channels and avoid the clutter of your competitors?  How is this ability to stand out so important to create that connection to the customer?


Don’t Make This MISTAKE: Marketing Ideas for Payday Loan Stores

Searching for simple, inexpensive ideas for marketing your payday loan, car title, or installment lending business? Watch this short, funny, and very informative video produced by Miro, Co-Founder of The new resource for all lenders in the AFS (Alternative Financial Services Industry).