By: Jer Ayles-Trihouse Consulting. Get ready my friends! Small dollar lenders [payday loans, title loans, micro-lenders, Fintech…] will likely experience a renaissance as early as 2017. The CFPB structure has already been determined to be unconstitutional. Congress cannot digest the ability of the CFPB to get funding directly from the Federal Reserve Board – really tax payer money – thus circumventuing congessional purse strings and oversite. And today, the second in command of the payday loan CFPB attack dogs took a drubbing from the Republicans who will likely determine the fate of the CFPB. Will the CFPB have ANY teeth left? Unlikely…
GABE RUBIN over at Morning Consult wrote an exciting piece describing a fractious conversation that took place between President Trump’s potential pick for head of the CFPB [Randy Neugebauer (R-Texas)] and a CFPB staffer (Silberman).
The bottom line is that these CFPB bureaucrats, who are determining the spectrum of financial products and services Americans have access to ADMITTED TO NEVER SO MUCH AS VISITING A PAYDAY LOAN STORE IN THEIR LIVES!
Meanwhile, the CFPB is proposing regulations that have, and will continue, to destroy jobs, drive entrepreneurs into banktruptcy, empty store-fronts thereby increasing commercial property vacancies and crushing commercial property valuations, while MOST IMPORTANTLY denying consumers the right to choose what financial product BEST SERVES THEIR NEEDS!
As Gabe reports it, “The hearing started off testily, with House Financial Services Financial Institutions and Consumer Credit Subcommittee Chairman Randy Neugebauer (R-Texas) decrying the CFPB’s “paternalistic erosion of consumer product choices” in short-term, small-dollar lending.”
‘It got worse from there. “What the heck is a scholar on payday lending? Is it someone like you, who has never been to a store?” Rep. Roger Williams (R-Texas), asked Silberman to rollicking laughter of his fellow Republicans on the committee.’
[Gabe wrote that Silberman had conceded earlier in the hearing that he had not personally been to a payday lender storefront, though his staff had.]
“It would be great if you’d back off a little bit and realize that consumers know better,” Williams said.
Are you ready to jump into the business of making money by lending money? Get started! Learn the ropes! Get our Book. Schedule a call! It’s going to be fun times for those few entrepreneurs who have access to a few bucks and some guts!
How to Make Money by Lending Money
By Miro Posavec. A few months ago I wrote an article called, “There’s PANIC in the Streets.”
Let me start by saying that I don’t care too much for politics. I care about what happens to my country, my businesses, my family, and to me. I believe that’s true of most people.
And these past few years have shown how much damage can be done by public servants who don’t understand that the public has NEED of our payday and installment loan services, and by limiting options, they’re making life HARDER for those that most need every available choice.
With the support of the current administration, the CFPB has been attacking our industry on multiple fronts. Through negative press, discontinuing ACH transactions, limiting rates/ fees, and squeezing our banking partners.
It was ugly. And all the projections were that the Democrats would win. We lenders were all getting ready for the worst. Our consulting clients weren’t calling about methods to grow or expand their businesses. They were calling to get out, or wondering how to survive in such a hostile environment.
As always, we advocate good business practices, taking care of customers, and having a variety of services and revenue streams. This is true if you’re one location or 10,000.
If you’re lending money online, we recommend a few brick and mortars, and if you’re a store front, we advise dipping your toes into the online world. Diversity gives you power over adversity.
Moving forward, it appears we’re going to have a government that’s friendly to our industry. It looks like the CFPB is going to be “de-clawed,” and we’re going to be able to grow our lending operations.
We’re witnessing loan portfolios and enterprise valuations going up while our consulting clients are calling us with different questions. Now, we’re getting more of, “how do I grow?”, “I want to capture market share…”
Regarding “the business of lending money to make money,” here’s what we’re working on for you right now.
We’ve created a Google Local solution. If you don’t know what I’m talking about, you’d better pay attention. Most consumers now look for a local business on their phones. And that means they do a google search.
Let me be clear. Our “Google Local Solution” is probably the most important marketing tool for your business TODAY. Here’s why:
There are hundreds of directories, and services that promise to get you onto page one of Google’s search results. But Google is too smart to be played. There are no shortcuts, and no substitute for quality content.
Google has recently changed all of their algorithms, and there is no magic bullet that’s going to guarantee your top spot. You’re probably getting a dozen sales calls per day promising control of Google.
Over the next week or so, we’re releasing an UP TO THE MINUTE Google local solution for lenders. (Some changes came down just in the past 2 weeks).
So… we’re offering you three levels of participation in our new Google Local Program specifically targeted to lenders and rellated financial services businesses.