AMERICAN SUBPRIME LOAN NEWS

June 2026

The Great Shrinking of Title Lending and Why Survivors May Be Entering Their Best Decade

Twenty years ago, Texas had title loan stores everywhere.

Mom-and-pop operators.

Small chains.

Independent owners.

Everybody wanted in.

Today?

Drive around Texas and pay attention.

Many of those stores are gone.

Some got regulated out.

Some sold.

Some simply got tired.

Some lost the war against rising customer acquisition costs.

But here’s what fascinates me.

The borrower didn’t disappear.

The need didn’t disappear.

And banks still don’t want these customers.

Which means fewer lenders are competing for the same desperate borrower.

That’s not necessarily bad news.

In fact, it may be the exact opposite.

Inflation Is Creating A New Type Of Borrower

Five years ago, many title loan customers fit the stereotype.

Today?

I’m seeing something different.

The transmission goes out.

Air conditioning dies.

Insurance premiums jump.

The rent increases.

A spouse loses hours.

The refrigerator quits.

Suddenly, people with 600 credit scores find themselves looking for $2,000.
 

Not because they’re irresponsible.

Because life happened.

America is producing accidental subprime customers.

And many of them pay surprisingly well.

The Real Threat Isn’t Austin

Everybody worries about regulators.

Truthfully?

The thing I’d worry about more is customer acquisition cost.

Ten years ago, you could throw money at Google and watch customers walk through the door.

Not anymore.

Google clicks are expensive.

Lead aggregators are expensive.

Mail isn’t cheap.

Radio barely works.

Everybody is fighting over the same borrower.

I know stores spending $300 to $500 to acquire customers.

That’s insanity.

When acquisition costs start approaching your profits, math eventually wins.

I believe customer acquisition costs, not regulators, will determine who survives over the next decade.

Here’s Something Nobody Talks About

The cheapest customer you’ll ever acquire is one you already funded.

Think about that.

You’ve already spent the money.

You’ve already built trust.

You’ve already done the work.

Yet many lenders spend thousands chasing strangers while ignoring thousands of former customers.

The math makes no sense.

I believe customer databases are becoming more valuable than storefront locations.

And the lenders that learn how to reactivate customers efficiently will outperform everybody else.

The Silent Consolidation Is Real

Every year I see fewer independent lenders.

Not because demand disappeared.

Because the business became harder.

Technology costs.

Compliance costs.

Labor costs.

Capital costs.

Everything costs more.

The survivors have become better operators.

And that’s creating something interesting.

Less competition.

The pie didn’t shrink.

The number of forks at the table did.

Charge-Offs Are Creeping Up

This concerns me.

Consumers are under pressure.

Credit cards sit near record levels.

BNPL obligations are stacking up.

Auto insurance costs are exploding.

Medical debt hasn’t gone away.

I’m seeing more borrowers juggling multiple obligations than I did five years ago.

That doesn’t mean stop lending.

It means underwriting discipline matters again.

Everybody looks smart in easy credit cycles.

Great operators distinguish themselves during difficult ones.

AI Is About To Separate The Adults From The Children

I’m not talking about writing blog posts.

I’m talking about operations.

Imagine:

• AI reviewing documents.

• AI assisting collections.

• AI responding to leads 24 hours a day.

• AI helping employees answer questions.

• AI reviewing compliance procedures.

• AI helping train CSRs.

Small operators now have access to tools only giant companies could afford ten years ago.

The technology gap between large chains and independent operators is shrinking.

That’s exciting.

What I’m Watching Closely

Average Title Loan Size

I continue seeing larger requests.

$2,000 and above is becoming normal.

Inflation affects everybody.

Near Prime Becoming Subprime

The borrower profile is changing.

Tomorrow’s customer may be today’s bank customer.

Consolidation

I believe there will be fewer operators in 2030 than there are today.

Customer Acquisition Costs

This remains the number I watch most closely.

Referral Marketing

I think this industry is terrible at referrals.

Most lenders are sitting on armies of customers and local businesses who would gladly refer people if somebody built a system around it.

The lender who solves customer acquisition wins.

Everything else is secondary.

Something I’ve Learned After Twenty Years

People have been predicting the death of title lending for decades.

Yet life keeps happening.

Cars break.

Divorces happen.

Hours get cut.

Kids need braces.

The electric bill arrives.

Banks say no.

And people still own cars.

Human nature hasn’t changed.

Need hasn’t changed.

Collateral hasn’t changed.

What changes are the operators.

Some disappear.

Some sell.

Some quit.

And some quietly get better every year.

Those are usually the people still standing when the smoke clears.

And from where I sit, I believe the survivors entering the second half of this decade may have a better opportunity than they realize.

Coming Next Month

The $400 Customer Acquisition Problem

Why spending more money on customer acquisition will make your title loan business less profitable, and what smart operators are doing instead. 

[Hint? We’ve built a referral platform that will BLOW YOUR MIND]

Got a question? Ask me anything! Go as deep as you like .

Https://JerAyles.com. 24/7/365

Jer Ayles

Trihouse Consulting

TheBusinessOfLending.com

702-208-6736

[email protected]
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