Category Archives: payday loans

Former Google employee raises more capital for online loans

Although ZestCash claims not to be a payday lender, it’s the same customer.  What’s worth noting is that lending to the underbanked can attract investment dollars and VC funding.   Here is the press release from GIGAOM. ZestCash, a next-generation loan service for the underbanked, has raised $19 million, including an $8 million line of […]

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CAN-SPAM Act: A Compliance Guide for Business

I get a lot of questions about email marketing. Here is the FTC’s guide for sending commercial messages through an email. It’s called the CAN-SPAM Act.  Notable, the name is not telling people how to SPAM legally.  CAN-SPAM stands for Controlling the Assault of Non-Solicited Pornography And Marketing.  In a hurry?  Watch this video. Here are the basics according to the […]

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A little industry gossip on Teletrack

“Teletrack, Inc. has agreed to pay $1.8 million to settle Federal Trade Commission charges that it sold credit reports to marketers, in violation of the Fair Credit Reporting Act (FCRA).” It goes on to say, “For example, Teletrack sold lists of consumers who previously sought payday loans to third parties that wanted to use this […]

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Bank Payday Loan Products

Critics want to scowl at your payday loan product.  Send them over to Wells Fargo, 53rd or US Bank. Wells Fargo’s calls it a Direct Deposit Advance. “This is a line of credit, not a loan. You may make advances as often as you like in increments of $20 up to your available credit limit.” […]

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Big Supreme Court Case | Wisconsin Payday Loans

The Supreme Court in Wisconsin may throw a wrench in the Wisconsin payday loan business.  The Associated Press reports “Wis. judges ask Supreme Court to take loan case.” Here is the borrowers side: Consumer: Mount filed a counterclaim alleging the loans violated the Wisconsin Consumer Act because the interest rates were unconscionable. La Crosse County […]

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Banks default rates are scary

I was at a wedding Saturday night and was sat next to a comptroller for a large bank.  His portfolio was subprime housing.  His bank has over $50 billion in subprime mortgages and there is almost a 30% default rate.  I asked him what happens when they work out the loans, if they would be […]

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Auto title loans may be back in Wisconsin.

We’re all confused why auto title loans were banned this year in Wisconsin.  They have a new Republican governor and things are looking up. “The Joint Finance Committee voted 11-5 this month to add the proposal to the budget.”  Here is the source.  

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Payday Loans in NY?

Not a lot of information out there, but the Huffington post is pissed…..and that’s a good thing.  The proposed bill is sponsored by State Senator Hugh T. Farley of Schenectady.  What NY is realizing that the easy money for check cashing is gone and they need the ability to offer new products, like small consumer loans. […]

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New Payday Laws in Texas

“The Associated Press is reporting that the Texas Legislature has approved a package of measures requiring payday lenders to meet stricter transparency standards — mandating that they post full interest rates, fees and terms of service. The House approved on Thursday two companion bills directing that loan companies display the disclosures prominently and advise customers […]

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CSO Model Basics

The information in this post is taken from a power point by attorney Scott Sheehan of Greenberg Traurig.  J. Scott Sheehan is a business lawyer with a national practice in banking and financial institutions, and consumer and commercial financial services. The CSO registers as a CSO under Chapter 393 of the Texas Finance Code. It advertises […]

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