Tax Prep Season is here let’s get after it!

by The CAB Man Texas on January 9, 2020

We are nearing the end of the Holiday Season’s high demand period that coincides with the beginning of Tax Season.  Many CAB Consulting clients and TOFSC Members offer Tax Preparation services, and some will be doing it for the first time this year.   I know many who are ready to get after it so let’s go!

Here are some things every business needs to know about 2020’s Tax Prep Season:

  • IRS is expecting more than 150 million tax returns expected to be filed.
  • W2’s are already going out, all must be out by end of January.
  • Tax filing season is Monday January 27th through Wednesday April 15th.
  • Refund advances are happening already.
  • Expect heavy loan payoff trends to start mid-February.  
  • In 2019, we saw largest payoff week of entire year fall on the week of February 24th to March 2nd which was the exact week when the Earned Income Credit consumers got their refunds and paid off.
  • Earned income credit / additional child tax credit – consumers who seek these credits will get their refunds later.
  • In 2020, this means that refunds for these consumers will not happen before February 15th.  In, 2019 it was February 27th so it is good that it is 12 days sooner.
  • This is the 4th year where there has been a delay on tax refunds for those where the “PATH Act” applies (Protecting Americans from Tax Hikes Act). 

With the key information above you should be able to forecast where loan volume will go, when demand will wane, etc.  The Tax Prep market is very competitive but if you are committed it is a nice way to expand services to your existing customer base and grow an attractive additional revenue stream for your business.  If you have interest in adding these services, reach out to CAB Consulting for assistance!

This blog post was written by Michael Brown, President of CAB Consulting and the Texas Organization of Financial Service Centers.  He can be reached at 214-293-8676, or Michael@CreditAccessBusiness.com.

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OCCC set to report to Finance Commission Friday

by The CAB Man Texas on December 18, 2019

The OCCC is all set to report to the Finance Commission this Friday, December 13th.  Below for the key take-aways for CABs offerring payday, installment, and title loans in Texas.  The report will compare September-October 2018 vs. 2019.  The Septermber-October 2019 part of the OCCC “fiscal year to date 2020”).

·         Examinations are down across the board at every license type except Pawn (89 in 2018 vs. 100 this year).

·         OCCC is reporting they are below target on exams and that they have been doing training and certifications.

·         As well, they are heavily focused on an “enterprise” examination of a large CAB that is taking up 20% of their focus / target.

·         CABs went from 13 examinations in the same period of 2018 compared to just 6 this year.   

·         For whatever reason CABs are way below all of the other license groups in terms of the “acceptable level of compliance” which is a term used for how well we are being examined.  We are hovering in the 55-65% range over thre last year whereas everyone else is in the 80-100% range.  This has been the trend since q4 2018 and would mean that us CABs have not been getting examined much and from our perspective many would agree.

·         Investigations – zero so far for payday and title categories in FY 2020 compared to just 1 on a title loan business same period last year.

·         Complaints – 8 in payday and 10 in title compared to 17 payday and 11 in title which is always good to report.

·         CABs are looking very good with their ratio of complaints to total licenses.  We are at .9 of 1,920 licensees which is at the lower end of the spectrum.

Link to the packet: https://www.fc.texas.gov/sites/default/files/2019-12/121319-fc-packet.pdf

This blog post was written by Michael Brown, President of CAB Consulting and the Texas Organization of Financial Service Centers.  He can be reached at 214-293-8676, or Michael@CreditAccessBusiness.com.

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OCCC is having a special stakeholder meeting on the questions posed to the Attorney General recently about CSO’s.

December 3, 2019

See below for a recent email sent out to OCCC stakeholders: “On December 9, 2019, at 2:30 p.m., the OCCC will hold a stakeholder meeting on credit services organizations and attorney general opinion KP-0277. A stakeholder meeting notice is available at: https://occc.texas.gov/publications/attorney-general-opinions. On this webpage, click the link labeled “Stakeholder Meeting Notice.” The meeting notice provides […]

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Helping Green Dot and other pre-paid card holders get funded on loans…good or bad idea?

November 21, 2019

Lending to Green Dot Card Customers – is this a good or bad idea?  Many feel these and other pre-paid card accounts carry too much risk because the card holders are not as “married” to the card versus the commitment assumed is had with a traditional bank with local branches.  We had one TOFSC member […]

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Keeping an eye on FinTech Lending

November 15, 2019

Why should Texas CABs keep an eye on FinTech Lending?  We need to watch and learn, let’s evolve our businesses by watching their successes and failures.  Where you can, implement their techniques that work, into your CAB’s capabilities! Think marketing, underwriting, process flow, etc.. These recent OCCC MSA report statistics show that FinTech now owns the […]

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OCCC will be reporting to the Finance Commission Friday, October 18th.

October 22, 2019

The quarterly Finance Commission Meeting will be this Friday, mostly information will be reported for September to August 2018 vs. 2019…that is their fiscal year. OCCC will report that: ·         Examinations were down in 2019, went from 638 to 475. ·         CABs went to the bottom in terms of acceptable level of compliance…due to lower examination volume.  […]

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What is a FinTech really? Be one.

October 7, 2019

Seems like over the last year that the industry buzzword has been “FinTech.”  According to BuiltIn.com “”Fintech” is a portmanteau (combination of two words to create a new one) of financial” and “technology.”  It is the application of new technological advancements to products and services in the financial industry.” For those of us in business […]

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The “Lend 360” Conference is coming up in Dallas on the 25th here are the summary details.

September 24, 2019

The “Lend 360” Conference is coming up in Dallas, September 25-27.  Since it is in our back yard versus Florida or California wanted to discuss it a bit and give you some information for you to better decide on whether you will or will not attend.  Many of our vendor and TOFSC sponsor companies will be […]

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Silicon Valley FinTech “Earnin” may need to buckle up for a bumpy ride.

September 11, 2019

The New York Times ran a bit of an “expose” on “Earnin,” an online lending FinTech that may need to buckle up for a bumpy ride… It seems like each week there is a new Silicon Valley FinTech anti-payday loan venture that is launched with millions in funding and all the slick PR you can […]

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Back to School is here is your small business ready?

August 13, 2019

Did you know that for many the Back to School season each August is the second highest seasonal demand period for the payday industry?  Only the Christmas and New Year Holiday time frame beats Back to School in terms of seasonal demand. For Texas Credit Access Businesses offering cash advances, payday loans, or title loans, […]

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