THE BLOG

08
Jun

Wolf of Wall Street Fires Up PDL Employees

WOW!

Your payday loan Team need a little INSPIRATION?

THIS IS IT!

“So, you listen to me and you listen well. Are you behind, on your credit card bills? Good. Pick up the phone and start dialing. Is your landlord ready to evict you? Good. Pick up the phone and start dialing. Does your girlfriend think you’re a fucking loser? Good. Pick up the phone and start dialing! I want you to deal with your problems, by becoming rich! All you have to do today …is pick up that phone, and speak the words that I have taught you. And I’ll make you richer than the most powerful CEO of the United States of fucking America.”

WARNING: For those of you who cringe at anything politically incorrect, DO NOT WATCH “The Wolf” work the phones!

Gather your Team around a computer monitor for 90 seconds and immerse yourselves in a TRUE ADRENALINE RUSH the likes of which your more timid souls have NEVER BEFORE EXPERIENCED!

NO B.S.

Watch & listen as the “Wolf of Wall Street” works the phones.

GUARANTEED, YOU & your TEAM will achieve a MASSIVE 10X+ increase in ROI today.

PS: A HUGE thankyou to Robert Wheeler at TOFSC for bringing this to our attention!

See those little black boxes? They are called telephones.

I’m gonna let you in on a little secret about these telephones.

They’re not gonna dial themselves! Okay? Without you they’re just worthless hunk of plastic. Like a loaded M16 without a trained Marine to pull the trigger. And in the case of the telephone, it’s up to each and every one of you, my highly trained Strattonites, my killers.

My killers who will not take no for an answer! My fucking warriors who’ll not hang up the phone, until their client either buys or fucking dies!

Let me tell you something. There is no nobility in poverty. I’ve been a rich man, and I’ve been poor man. And I choose rich every fucking time. Cause, At least as a rich man, when I have to face my problems, I show up in the back of a limo wearing a $2000 suit …and $40,000 gold fuckin’ watch!

Now, if anyone here thinks I’m superficial or materialistic. Go get a job at fucking McDonald’s, because that’s where you fucking belong!

But, before you depart this room full of winners, I want you to take a good look at the person next to you, go on. Because sometime in the not-so-distant future, you’re pullin’ up to a red light in your beat-up old fucking Pinto, and that person’s gonna pull up right alongside you in a brand new Porsche, with their beautiful wife by his side, whose got big voluptuous tits. And who will you be next to? Some disgusting wilder beast with three days of razor-stubble in a sleeveless moo-moo, crammed in next to you with a carload full of groceries from the fucking Price Club! That’s who you’re gonna be sitting next to.

So, you listen to me and you listen well. Are you behind, on your credit card bills? Good. Pick up the phone and start dialing. Is your landlord ready to evict you? Good. Pick up the phone and start dialing. Does your girlfriend think you’re a fucking loser? Good. Pick up the phone and start dialing! I want you to deal with your problems, by becoming rich! All you have to do today …is pick up that phone, and speak the words that I have taught you. And I’ll make you richer than the most powerful CEO of the United States of fucking America.

I want you to go out there, and I want you to RAM Steve Madden stock down your clients’ throats. Till they fucking choke on it till they choke on it and buy 10,000 shares! That’s what I want you to do. You’ll be ferocious! You’ll be relentless! You’ll be telephone fucking terrorists! Now, let’s knock this Motherfucker out of the park!

I listen to this everyday before I sell. I ignore no soliciting signs, kick dogs that try to bite me, and shout out my sales pitch before they tell me “not interested” that would put Billy Mays to shame. I MAKE them interested. Everyone is either a buyer, or a chump who isn’t qualified to buy. I don’t go home until I sell, I’d rather piss off a hundred people than not pay my bills.

05
Jun

Payday Loan Advertising after the Google Ban

Payday Loan Advertising after the Google Ban

After Google, Bing and Facebook banned Payday Loan companies from advertising their products, direct acquisition of new loan borrowers has gotten more difficult. The move is especially troublesome for those companies with small marketing budgets, as the market leaders have built brands that enable them to continue funneling in new payday loan, installment & title borrowers without aggressive acquisition focused advertising.

The primary strategy for payday loan, installment, title and line-of-credit lenders is to build their own brand. Building a compelling marketing proposition with the creative to match, and spending considerable budget on advertising this brand, are no longer optional in order to create a long term competitive advantage.

Balance sheet lenders must bring a sense of real world legitimacy to their offerings in order to get business without relying on tactics at the bottom of the acquisition funnel. These tactics include PPC, affiliate and targeted SEO keywords that place lenders in front of potential borrowers at the moment they need access to small dollar loans. While it’s great to be there at this stage of the acquisition process, in order to build a lasting loan portfolio that doesn’t rely on one fickle media company (like Google), lender brands must literally be inside their potential customer’s head before they make their loan decision.

Payday, Small Business & Installment Loan Biz

Payday, Small Business & Installment Loan Biz

To gain this brand awareness in terms of media channels, we recommend TV, outdoor, print and direct site sponsorship in addition to programmatic marketing; of course, budget permitting. On the ‘earned’ side of media, lenders should focus on Public Relations, Content Marketing and Organic Social Media –  again to bring a sense of real-world legitimacy into prospective borrowers minds and to create brand awareness.

Lenders should also employ direct acquisition tactics, in addition to building a brand. If there is not enough budget to do all of this, we recommend focusing on acquisition. We live in the real world, and those lenders on a shoestring budget will have no other choice. For direct acquisition (those bottom of the funnel tactics) we certainly recommend lenders to employ lead generators, programmatic display advertising (RTB and Retargeting), SEO through content link building on quality sites (no shady stuff!), email advertising and perhaps even snail mail direct marketing.

[Be aware that direct mail marketing, unless well targeted, typically results in <1.5% conversions! Expensive… After reviewing 15M+ first-time customer acquisition conversion rates, CAC’s (Customer Acquisition Costs) ranged from $198 – $395+.]

One interesting detail is that payday lenders can still  use Google’s display network via Google’s Adx; one of the largest programmatic exchanges. If that continues, it demonstrates that this was merely a public relations move for Google, with their most visible property (paid search) as the only place this ban is in place.

This article was contributed by Bart Burggraaf who is a partner at MediaGroup Worldwide, a niche financial services marketing agency. Get in touch if you need any help with your marketing as a payday, installment, title, or line-of-credit lender.

Jer – Trihouse: PaydayLoanUniversity.com/

01
Jun

Time to Evolve to a New LMS!

Time to Shift to a New LMS?
If you are not happy with your current payday loan, title loan or installment loan [LMS] provider, don’t hesitate to look for a new one. Sometimes we make shortsighted decisions  to take the path of least resistance. In any case, it’s important you know  what’s out there, the cost, and the support levels you will realize by making the move.
There is new, exciting LMS technology in our market that can take your lending programs to a whole new level when it comes cost, ease of use and customer acquisition. First-time customer acquisition costs exceed $200+. Customer onboarding and servicing can break you while destroying your margins. Your LMS can make the difference! Recognize that reducing reoccurring monthly transaction costs will dramatically improve your portfolio’s performance; particularly when costs are reduced 20-40%.
Top complaint about LMS? The length of time and the out-of-pocket expenses for custom programing and integration. Solutions exist NOW!.
What if you could lower your costs, get into a better LMS that is built with the lenders interests in mind? This is now all possible. It’s time to set up a demo.
Specifics? Reach out now!! TrihouseConsulting@gmail.com
AND, don’t hesitate to visit: http://www.paydayloanuniversity.com/resources/ LOOK AT “Loan Software.”
31
May

Choice Act Defangs CFPB: “No Authority Over PDL, Vehicle Title Loans.”

Good news for payday loan, title loan and other alternative lenders! Proceed to page 403 of the Financial Choice Act  for some interesting language relevant to those of us who fund loans:

17 ‘‘(t) NO AUTHORITY TO REGULATE SMALL-DOLLAR 18 CREDIT.—The Agency may not exercise any rulemaking, 19 enforcement, or other authority with respect to payday 20 loans, vehicle title loans, or other similar loans.’’

Additionally, the American Bankers Assn. submitted a report to Treasury Secretary Steve Mnuchin requesting CFPB’s proposed payday-lending rules be denied and asking for regulatory changes allowing banks to issue their own payday loans.

Here’s a link to HR 10 The Financial Choice Act as propsed in The House: Choice Act

And, here’s a link to the Bank Report: ABA White Paper on Small Dollar Credit

20
May

Payday Loans: Banks & Credit Unions Want a Piece Again

By: Jer – Trihouse. The payday loan industry took a huge hit in August 2013 as a result of the Obama administration’s ACH debacle via “Operation Choke Point.” Hundreds of lenders including tribes, state licensed and offshore lenders were forced to leave consumers high and dry without access to short-term emergency funds.

I’ll NEVER forget that day! I had arrived in Paris for a month’s holiday the prior day and suddenly I was inundated by my payday loan business partners, peers, competitors and friends with their tales of woe. Their ODFI’s and ACH processors were dropping them like flies. We had to scramble to collect on hundreds of millions of dollars in consumer loans! But how?

I must have spent 80 hours on Skype my first week in France in an attempt to solve our payment process and banking issues.

Eventually, we developed a plan and survived. Many of my friends did not.

Today, things are completely turned around for us. It’s back to business as usual. Banks, ACH processors, credit and debit card processing are relatively easy to secure. New lenders with creative loan products are entering our game daily. Installment loans, FinTech, P2P, marketplace lending, loan-by-phone… exciting times and tremendous opportunity!

As I pointed out in a previous article, Native American Tribes loaned $1B plus last year. One publicly traded company lent $500M in just one recent quarter while others report similar results. Meanwhile, thousands of brick-n-mortars continue to thrive in 33+ states and new lenders enter this space daily. “Pew estimates 12 million Americans take out payday loans each year, spending $9 billion on loan fees.” Add car title loans, installment loans, line-of-credit loans… And, let’s not forget: 53% of American households cannot get their hands on $400 in an emergency! Difficult to fathom but so true.

Why? Because consumers and SMB’s continue to seek loans at record rates. And, they are willing to pay 300%+ APR’s for the privilege. (NOTE: I rarely refer to APR’s but it seems appropriate here.)

So, it’s no surprise to me that the Wall Street Journal ran a piece with the headline:

“Banks Want a Piece of the Payday-Loan Pie”

“Pushed out of short-term loans by 2013 regulation, banks and credit unions hope for a comeback.”

This is great news for alternative financial lenders!

I welcome this development!!

With banks and credit unions (recall credit unions do not pay taxes) lobbying for less regulation and declawing the CFPB, our future is secured.

As WSJ reporter Yuka Hayashi writes, “Letting banks and credit unions offer small loans, proponents say, would help the millions of U.S. households that pay billions of dollars in fees each year to payday and auto-title lenders that often charge annual interest rates exceeding 300%.”

And, this movement by banks and CU’s clears the path for alternative finance lenders like us to continue to offer our consumers fast, easy, transparent loan products that solve our customers financial challenges. No bank or CU can beat us at our game! We are laser focused on our customers and their needs.

Honest reporters acknowledge (Lisa Servon, I’m thinking of you 🙂 that a visit to a payday loan store or website CLEARLY and CONSPICUOUSLY reveals EXACTLY what the fees are for a payday loan, an installment loan, a car title loan, a line-of-credit product…

Can ANY bank or credit union say the same thing about their fees? A RESOUNDING NO!

Our future, in spite of reports of our death being greatly exagerated, is certain!

Need help with your small dollar loan business? Click for help.

  • Credit card processing: push-to-fund processing
  • ACH services
  • Debit card
  • Check-21/RCC
  • Online or brick-n-mortar
  • Tribes, state-by-state, offshore

14
May

Texas Payday Loan Laws & License

Texas Credit Access Businesses

Texas Credit Access Businesses obtain credit for a consumer from an independent third-party lender in the form of a “deferred presentment transaction” or a “motor vehicle title loan,” more commonly referred to as “payday loans” or “title loans.”

In Texas, the actual third-party lender is not licensed; the credit access business that serves as the broker is the licensee in this Texas CAB/CSO regulated industry. The credit access business charges a fee to the consumer for obtaining the third-party loan; this fee is usually calculated as a percentage of the loan amount.

Texas-CSO-CAB-ManualThe unlicensed third-party lender charges a maximum of 10% interest annually. Often, the Texas third-party lender participates in consumer late and NSF fees thus increasing this 10% APR.

The borrower will sign a promissory note with the lender for the actual loan and a separate credit service agreement with the credit access business. Generally, all documents are signed at the credit access business location and payments are made directly to the credit access business.

The Texas CAB services the loan, markets the loan, and secures the consumer loan on behalf of the third-party lender.

Typically, Texas CAB’s charge $22 – $35 per $100 loaned for a period due on the consumer’s next payday.

CREDIT ACCESS BUSINESS LICENSING FORMS

Texas CAB Licensing Forms

New License Applications: Apply Online: ALECS

Personal Affidavit

Personal Employment History

Personal Questionnaire

Texas CAB Individual License Forms

Application for New License or Transfer of License

Application Questionnaire

Assignment of Statutory (Registered) Agent

Business Operations Plan

Disclosure of Principal Parties

Disclosure of Third-Party Lenders

Financial Statement-Personal

Financial Statement: Schedules 1 – 3

Financial Statement: Schedules 4 – 6

New Application Checklist

New Application Consent Form

Personal Affidavit

Personal Employment History 

Personal Financial Statement

Personal Questionnaire

Statement of Experience

Statement of Records/Record keeping

 

 

04
May

Criteria Required for an Installment Loan or Payday Loan

Borrower Requirements for Payday & Installment Loans

At a minimum:

  • Military exemption
  • Debit card
  • Completed payday or installment loan application
  • Proof of income (Normally a bank statement(s)
  • Maximum of 2 bank account NSF’s in past 30 days
  • Demonstrate an ability to repay the loan; meet the terms of the loan

Note: Again, these are the very minimums. Your loan business minimum requirements may differ. And many operators will disagree with my last point!

Where are you on your installment loan lending business evolutionary scale?

If you’re a startup, having a serious amount of capital you need to put to work quickly, you will have to embrace more risk and expect higher first-time default rates.

Your first time customer acquisition costs will be higher than a fully matured portfolio as well.

How to Start Installment Loan Business

How to Start Installment Loan Business

On the other hand, those of us with legacy portfolios having displayed stability beyond the first 2+ years, will likely treat our loan portfolio as an annuity. 80% plus of your customer base will be returning borrowers. 10% – 20% of your customers will have to be replaced annually.

There are a multitude of strategies to profiting in the business of lending money to make money; without the need to actually fund loans. Here are 14 different ways I discussed previously: “14 Ways to Make Money in the Payday Loan – Installment Loan Space.”

Finally, employ one or more of the sub-prime consumer agencies we thoroughly discuss in our Manuals a few of which are listed here: Payday, Car Title & Installment Loan Resources

03
May

Payday Loan: 36% APR Cap Rate Impact on South Dakota

36% APR Cap Rate on South Dakota has Devastating Impact on Some So. Dakota Residents.

When will the regulators and folks who have access to cash in an emergency ever understand?

A multitude of organizations, the CFPB, PEW and the Federal Reserve among others, recognize the fact that “47% of U.S. residents cannot get their hands on $400 cash in an emergency!

The few Americans who actually cast a vote, and the various state and federal regulators, must eventually comprehend that passing laws against poor people is not the method for solving this cash flow problem.

Payday, Small Business & Installment Loan Biz

Payday, Small Business & Installment Loan Biz

South Dakota voters didn’t understand the repercussions of the payday loan bill that was passed. Passage didn’t squelch the need for a temporary loan. It simply pushed the financially challenged into the hands of banks and credit unions who charge 1000%+ APR’s for NSF’s, out-of-state lenders and Native American Indian tribes.

Competition for borrowers, Fintech companies, and the daily onslaught of new financial products is the answer to meeting the challenge of making cheap money available to those who experience a sudden car repair, rent payment difficulty, sickness… – Jer Trihouse and yes I’m biased!

28
Apr

Payday Loans, Small Business Loans and Car Title Loan Strategies

 

Payday, Small Business & Installment Loan Biz

Payday, Small Business & Installment Loan Biz

It’s a well known fact that it costs a bank as much to make a $100,000 loan  as it does a $1,000,000 loan; resulting in less profits for the bank. Thus, banks prioritize small and medium businesses [SME’s] by the loan amounts each SME requests.

The current challenge is that about 60% of small businesses [SME] want loans below $100,000.

Thus the opportunity! While the CFPB and state AG’s – in addition to city govermnment – attack the payday loan/installment lenders, there lies a HUGE opportunity for lenders to fund small businesses.

According to The Harvard Business Review and Morgan Stanley, “Last year, less than $10 billion in small-business loans was funded by online lenders, a fraction compared to the $300 billion in SME loans outstanding at U.S. banks. However, the current meager market share held by online lenders masks immense potential: Morgan Stanley estimates the total addressable market for online SME lenders is $280 billion and predicts the industry will grow at a 47% annualized rate through 2020. They estimate that online lenders will constitute nearly a fifth of the total SME lending market by then.”

Your goal? Transition from a 100% focus on consumer lending, where the HEAT is on, to small business lending where there are very few rules and virtually zero strong brands as of today.

Stay under the radar; it’s easy. You have, or can easily obtain, all the tools, knowledge, and technology required to pivot from payday and installment lending to servicing small business funding requirements. It will be years before the leviathan – read FED’s and state AG’s – begin to address this lending opportunity.

Let me emphasize the findings of The Harvard Review working paper: “One answer became clear: a gap in access to credit for small businesses did exist and was 1 Mills, Karen G., and Brayden McCarthy. “The State of Small Business Lending: Credit Access During the Recovery and How Technology May Change the Game.” Harvard Business School particularly persistent in small dollar loans— those defined as under $250,000. This finding is noteworthy, as this is the level of loan that most small businesses want; more than 70 percent of small businesses seek loans in amounts under $250,000, and more than 60 percent want loans under $100,000.”Harvard-SME-Small-Medium-Business-Lending-2017

Here’s a link: Harvard-SME-Small-Medium-Business-Lending-2017

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.