Major ACH Announcement & Who Really Hates PDL Lenders
Published: Thu, 02/20/14
Our challenge today is a matter of perspective. The old ways of lending
money are behind us. In spite of all the bad press, the constant
attacks, the unrelenting pressure put upon our industry, the future
is VERY BRIGHT for those of us who adapt to this new world.
Demand is only going to increase. A "globalization" of the middle-class
is occurring. It's like a barbell; the wealthy on one end and the rest
of the wage earners at the other end. For lenders, there are REALLY exciting
solutions on the horizon! I'm talking about NOW! Today!! For
those of you in need of new, creative dollar delivery and
processing alternatives, I'll be making a major announcement
SOON! Things are looking up!
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Who Really Hates PDL Lenders.
(Yes, this piece is long. Go read some sandwich Tweets if you prefer.)
I had lunch with a friend the other day. My friend owns 60+ locations
in multiple states. His first words to me were, "I hate internet
lenders." Now don't you forget , I "cut my teeth" with the store model.
I still have equity in multiple brick-n-mortars. And, for a little
perspective, know that my friend - a really smart PDL guy - recently
shut down his internet lending company because he assembled the wrong
team. He lost his butt in the PDL internet game!
As a direct lender, have you ever thought about who really hates
us? Our customers don't like the fees they pay us but few
seriously hate us. The majority are extremely happy we continue to
survive and enable them to get some quick cash without a hassle.
Bankers don't really hate us. They make money by providing
capital to us and, up until recently, they made loans to their
checking account customers as well. Of course, bankers do hate all
the heat we're bringing on them by NACHA, the FED's and the
state AG's.
Believe it or not, there are more than a few regulators and
legislators who accept the fact that we offer a product that's in
demand by their constituents. They recognize that payday lenders
make the experience of borrowing some cash from us for an emergency is
more akin to visiting McDonalds "where everybody knows your name" rather
than subjecting yourself to a "Spanish Inquisition" experience at a
bank.
Payday loan borrowers aren't stupid: although so-called consumer
advocates would have us believe so. PDL borrowers are able to weigh
any alternatives and determine what's their best loan product for their
circumstance; for their "problem."
Our vendors and suppliers certainly don't hate us. After all,
they depend on us to remain in business so they can prosper.
Sure, PEW, the CRL and a multitude of others attack us. But think
about who funds these organizations.
I was reading this piece today regarding internet gaming:
COALITION OPPOSING INTERNET GAMBLING BUILDING SUPPORT
By Howard Stutz
LAS VEGAS -- A coalition seeking a federal ban on Internet gaming
said Wednesday it has gained support from 39 faith-based and
conservative organizations.
The Coalition to Stop Internet Gambling announced the backing
during a telephone news conference. The organization, which is
financially backed by Las Vegas Sands Corp. Chairman Sheldon
Adelson, claimed the membership of the 39 groups total more than 1
million.
Among the groups are 11 different Faith and Freedom Coalitions, the
American Principles Project, the Network of Politically Active
Christians, and the Universal Baptist Church.
According to a statement from the Washington D.C.-based coalition,
the groups "come together to confront the many and varied
threats posed by legalized Internet gambling."
The coalition launched its first web advertisement on Monday.
Another group, the Coalition for Consumer and Online Protection,
was formed in direct response to the Adelson-funded coalition. It
was launched in an effort to halt any congressional move to ban
online wagering.
Interesting! Sheldon Anderson, a hugely successful
"brick-n-mortar" gaming guy, HATES online gaming. So, he
funds coalitions to kill it. He views online gaming as direct
competition. He's a long-time, entrenched, successful gaming
entrepreneur who seeks to destroy competitive internet startups.
Now, think about the payday loan industry. Any similarities? Have
you ever thought about the funding behind all the attack groups we
face? And while we're on it, ever thought about who funds payday loan
PAC's, FISCA, OLA, CFSA, your state association? Do they have our best interests at
heart? What about pawn associations, the buy-here-pay-here industry
and all the other potential competitors in our space?
The answer depends on your lending platform, your licensing model...
YOUR perspective.
Have you ever had a politician appear in your office and said
something along the lines of, "I'd really like to
understand your business and your challenges so I can help
you." Then, as the politician begins to stroll out, she turns
around one last time and asks, "Now, how much can you raise in
contributions to help me help you?"
My point? You really a shark? Look below the surface. Everyone has
an agenda. Me included. And don't "hate" what you don't understand. Our
industry is experiencing total disruption. What's this mean to you?
OPPORTUNITY! The entrenched are at risk of losing it all. Embrace the
internet, mobile, new dollar delivery systems, social media, tech,
collaboration... none of us has all the answers!
"Ignoring isn't the same as ignorance, you have to work at it."
Finally, I have some very exciting news to announce regarding ACH,
NSH, NOC and bank regulatory issues for Online Lenders using a
U.S. Bank(s)SOON!
Jer@TrihouseConsulting.com