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Payday Loan Industry Newsletter,Payday Loan ACH, FED's, Biz Developments & Opportunities Hello Payday Loan Fan,
1) A payday loan operator in Wyoming needs additional funds to meet
demand. This operator has 6 years of extensive experience in
the industry having worked in management positions for both Quik Check
and Advance America! Looking for $15 - $25K. Pictures are available
in addition to more information. 2) Payday Loan Internet Company & Portfolio for Sale. Here are the details. You would take over their established (DBA) domain. You would own the web site, the software and the clients including the entire portfolio. You would apply for a license and then take over the DBA. You would then assume the agreements with the software company and the call center at zero startup/setup costs. They are looking for $150,000. They will take 75,000 down and balance within 60 days. NEGOTIABLE! They have $109,275 in active loans (293 loans) ($87,900 principal) earning 50% per month gross. Additionally they have approx $60K in default and working. No web design fees! No call center or software set up fees! Gain entry to the payday loan industry with a complete turnkey solution. Price Reduced!! Sellers are motivated 3) FDIC & OCC shuts down Payday Loan ACH Processors and Freezes Funds Panic caused by rumors of the Feds attacking payday loan ACH providers began early this AM! After MANY frantic faxes, emails and phone calls it appears the companies at risk are all off-shore payday loan companies who lack Federal Tax ID's and failed to file US tax returns. Questionable activities also include the potential lack of "proof of ACH authorizations" and an excessively high "ratio of claims". Their bank accounts have been frozen as a result. It appears two ACH processors are involved. Final disposition is premature at this time but our CONSERVATIVE sources advise payday loan internet providers to secure licenses in states and provinces having "safe-harbor" legislation, max out at 3 rollovers, and ALWAYS secure a fully documented "Proof of ACH Authorization" from your customer. Look for a future Newsletter to discuss this. Newsletter continued below ****************************************************************Read a few of our previous Newsletters here if you missed them. The focus of our last few Newsletters
was : Subscribe at no cost to you for our Payday Loan Newsletter. The frequency is typically once each month. If
you have an interest in the payday loan industry, YOU NEED OUR Payday Loan NEWSLETTER! Payday Loan Newsletter Continued... 4) Payday Loan Lead Sellers Settle With FTC Two payday loan lead sellers have agreed to settle Federal Trade Commission charges that their Internet advertising stated payday loan costs and repayment periods without disclosing annual percentage rate (APR) information as federal law requires. The settlements require the respondents to disclose APR information in similar payday loan ads in the future and to comply in all other respects with the Truth in Lending Act (TILA) and its implementing Regulation Z. APR information helps consumers compare the costs of these payday loans with others and with alternative forms of short-term credit. In typical payday loan transactions, consumers receive cash in
exchange for their personal checks or authorization to debit their
bank accounts, and lenders and consumers agree that consumers'
checks will not be cashed or their accounts debited until a
designated future date. Payday loans have high fees and short
repayment periods, which translate to high annual rates, and they
often are due on the borrower's next payday, usually about every
two weeks. For more information about payday loans, see the FTC's
consumer education publication, "Payday Loans = Costly Cash,"
available at The respondents, We Give Loans, Inc. and Aliyah Associates, LLC, d/b/a American Advance, are lead generators based in Minnesota and Arizona. They advertise payday loans on their Web sites and collect information from consumers through their online applications. The respondents then sell this "lead" information to lenders that ultimately offer payday loans to consumers. (These leads typically sell for $9.00 to as much as $85 each depending on volume, quality, exclusivity and more.) The TILA and Regulation Z require that those who advertise the cost of credit must disclose the APR of the loans to help consumers make better-informed decisions, including assisting them in comparison shopping among loans. According to the FTC's complaints, the companies stated loan costs on their Web sites - a $20 fee for a $100 loan, for example - but failed to disclose the APR. For a typical 14-day pay period, consumers who obtained payday loans advertised by We Give Loans, Inc. would pay an APR from 260 percent to 521 percent or higher, and consumers who obtained payday loans advertised by Aliyah Associates would pay an APR of 782 percent. (The difference is due to the number of days the loan is outstanding.) The proposed consent orders prohibit the respondents from advertising certain credit offers without providing consumers with key disclosures, such as the APR, and bar them from violating the TILA and Regulation Z in any other manner. The Commission voted 4-0 to accept the administrative complaints and consent orders. The FTC will publish an announcement regarding the agreements in the Federal Register soon. The agreement will be subject to public comment for 30 days, until July 24, 2008, after which the Commission will decide whether to make it final. Comments should be addressed to the FTC, Office of the Secretary, Room H-135 (Annex D), 600 Pennsylvania Avenue, N.W., Washington, DC 20580. The FTC requests that any comment filed in paper form near the end of the public comment period be sent by courier or overnight service, if possible, because U.S. postal mail in the Washington area and at the Commission is subject to delay due to heightened security precautions. Comments that do not contain any nonpublic information may instead be filed in electronic form by following the instructions on the web-based form at http://secure.commentworks.com/ftc-WeGiveLoans and/or http://secure.commentworks.com/ftc-Aliyah. NOTE: The Commission issues an administrative complaint when it has "reason to believe" that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. These complaints are not a finding or ruling that the respondents have actually violated the law. The consent agreements are for settlement purposes only and do not constitute admissions by the respondents of a law violation. Copies of the complaints, consent orders, and analyses to aid public comment are available from the FTC's Web site at http://www.ftc.gov and the FTC's Consumer Response Center, Room 130, 600 Pennsylvania Avenue, N.W., Washington, DC 20580. The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC's online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 1,500 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC's Web site provides free information on a variety of consumer topics. ********************************************************************Our new Payday Loan Industry Blog: OK, time to go.......... See you all next month. And remember, "Make Money Payday Loan Fans". If you thirst for more payday loan knowledge, go here: This information is discussed further in depth in our Payday Loan Startup & Training Manual. You may ORDER it NOW. Next Month a new topic and coverage of more states. From: Trihouse Enterprises, Inc. If you have comments, questions, topics you would like covered...PLEASE contact: |
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