Category: Collections

07
Apr

Payday Loan Collections: How to

Hello Payday Loan Fan,

Insight & Wisdom in small dollar lending. Digging down below the media headlines…

Loan defaults are on the way up!  The good thing is that transaction volumes are increasing as well.  As the economy changes, these are the facts!

So, this month we asked the folks over at few of the sub-prime consumer data scrubbers to contribute their thoughts on how to collect from those clients that fail to live up to their agreements with us.

Enjoy and learn.

Why We Love Complaints & What You Can Expect!

Yes we received another complaint today!

In fact we receive these types of complaints every day.  AND WE LOVE THEM!!

Here’s the latest complaint received by our office (the only modification to this complaint is the phone numbers and last name):

“I have left numerous message’s regarding my account on check #1248 that has been paid in full. Please update your system and contact me asap @ 909-999-9999 cell or @ home 951-999-9999. This matter is very urgent and requires your immediate attention. I cannot write checks!”

“Thank You,
Tim XXXXXXXX”

So, why do WE LOVE COMPLAINTS?  Read on and learn. [FUNNY SIDEBAR: Many of these folks also come to us via eCheckSystem ]

All right! Something like 7 to 12 out of every 100 loan customers fail to pay you as agreed; unless you’re an Internet lender, then expect up to 25 out of 100. I’m referring to FTD’s – First Time Defaults.

Their references either don’t exist or they claim they never heard of your customer.

That employer phone number provided by your borrower turns out to be their sister’s cell phone.

Car Title Loan & Payday Loan Boot Camps Available

Car Title Loan & Payday Loan Boot Camps Available

The 3 collection letters you sent to your borrower’s “residence” were all returned; stamped “un-deliverable – no forwarding address.”

What is a lender to do?

Luckily, you do have your customer’s key information such as bank account number, social security number and a copy of their driver’s license.

So every story has a happy ending, right?

Sub-prime consumer data scrubbers to the rescue. You do have an account with a sub-prime consumer data reporting database, right?
If not, go here Sub-Prime Consumer Reporting Agencies and get hooked up!

Yes? OK then. Log into your account with your unique user ID and password. Enter your “bad customer’s” data and bank account information. Then, sit back and relax!

Eventually your “bad customer” will get her (OK, so it could be a him) life back together. It could take two weeks, three months, six months, a year, maybe even three years or more.

BUT, EVENTUALLY your “bad” customer will need to open a new bank account (yes, the service tracks by Social and driver’s license which are both required to open bank accounts) or they will need to use that check or debit card to make a purchase at their local grocery store. Then you’ll get them!  Finally, redemption at last 🙂

You see, the customer’s new prospective bank or payday loan lender will check the Shared Check Authorization Network (SCAN) database BEFORE allowing the customer to open that new checking account or get another loan. If your “bad customer” is applying for another loan, your “credit bureau” will provide you with their updated contact info.

This scenario happens every day; by the thousands.

If we don’t get your customer at the bank, we’ll get them at Wal-Mart or Target, or your credit bureau will alert you.

Eventually you get them. And eventually, YOU GET YOUR MONEY.

24
Dec

Payday Loan Portfolio Sales

Payday Loan & Installment Portfolio Sales & Bad Debt Chargeoffs

$112,000,000 in bad debt sold for $1,700,000 by Regional Management Corp.

Regional Management Corp. (NYSE: RM), a specialty consumer finance company, announced  that it has completed the sale of approximately $112 million of its existing charged-off loan portfolio. (Man, that’s gotta hurt!)

How to start a car title loan businessPre-tax proceeds from the one-time sale of the existing charged-off loan portfolio, net of commission and other expenses, were approximately $1.7 million, and will be recognized in the fourth quarter on Regional Management’s income statement as a reduction of its provision for credit losses.

Proceeds from the sale of forward flow charged-off accounts will be received by Regional Management on a monthly basis.

Regional Management Corp. (NYSE: RM) is a diversified specialty consumer finance company providing a broad array of loan products primarily to customers with limited access to consumer credit from banks, thrifts, credit card companies and other traditional lenders.

Regional Management began operations in 1987 with four branches in South Carolina and has since expanded its branch network across South Carolina, Texas, North Carolina, Tennessee, Alabama, Oklahoma, New Mexico and Georgia.

Each of its loan products is structured on a fixed rate, fixed term basis with fully amortizing equal monthly installment payments and is repayable at any time without penalty. Regional Management’s loans are sourced through its multiple channel platform, including in its branches, through direct mail campaigns, independent and franchise automobile dealerships, online credit application networks, retailers and its consumer website.

For more information, please visit http://www.RegionalManagement.com. Contact: Investor Relations Garrett Edson, (203) 682-8331

11
Jul

Collections for Car Title & Payday Loans

How to start a car title loan businessPayday and car title loan collections.

Generally, it’s illegal for debt collectors to harass customers (debtors) on social media. However, there are no rules prohibiting the use of social media to track down or learn important information – such as where the debtor works – on Facebook, Twitter, Snapchat…

Debtors voluntarily reveal very important, personal information about themselves everyday on social media sites.  There are sites debt collectors buy personal data from. If a debtor buys a pizza, collectors can easily, and cheaply, buy the “list” that has the debtor’s address and phone number on it. That kind of information is not private or protected. When a debtor “gives” their personal information to a pizza company, it becomes proprietary. They own it and can sell it. “The money is in the list!”

Personal consumer data collection is growing rapidly! We yield more and more information about ourselves all day long. Ever install an app on your phone to make your life a little more fun or easy? Our GPS info is revealed dozens of times per day. Use an app on your phone like LinkedIn, Pinterest, Instagram, Foursquare… and you’ve been found!