Bank Fees are rising and so is use of Alternative Financial Services – coincidence?

Bank Fees are rising and so is use of Alternative Financial Services – coincidence?

by admin on August 14, 2012

I was reading this CNN Money.com article today: http://money.cnn.com/2012/08/13/pf/bank-fees-rise/index.html

This is an issue that I am very familiar with and the result is more customers for Texas Credit Access Businesses.

Monthly service fees on accounts with balances below $5,000 are the banks targets for the monthly service charges, which certainly fits the low and middle income profile of the typical payday consumer. And, don’t forget that NSF and Overdraft fees at many banks are have drifted up into the $35-$40 range.

Options like pre-paid debit cards are becoming more attractive compared to the bank branch, and in many cases the pre-paid cards offer more ideal online account management and smart phone capability, all with lower monthly service charges.

Consumers are learning there are more convenient and less costly options out there, and a migration towards cutting edge alternative financial services is happening. Shape your business accordingly, get creative, and stay convenient!

I refer to the information below very often in conversations – it is published by FISCA and illustrates the real deal on banking related charges versus payday advances – the APRs are less in many cases! Be sure and have these statistics ready the next time the APR topic comes up – and then nail it.

$100 Payday Loan (14 days) = $22.88 Fee (596% APR)
$100 Overdraft Protection = $29.00 Fee (756% APR)
$100 Bounced Check = $54.87 Fees (1,431% APR)

Sources:
(1) Bankrate.com, 2007 Courtesy Overdraft Study – based on average first draft
(2) Average NSF fee $28.23 (Bankrate.com, 2007 Checking Study), based on average first NSF charge, and average merchant return check fee of $26.64 (2006 CFSA fee survey).

{ 1 comment… read it below or add one }

Jer – Trihouse August 22, 2012 at 8:07 pm

Michael,

You made some great points in this piece. Too bad the regulators are not informed. Not only do bank NSF fees translate into higher APR’s than payday loan products but additionally, more than a few banks (Wells Fargo for example) are offering products that compete directly with payday loans. The banks debit these customers the moment their customer’s payroll check is deposited; NO RISK to the bank!

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CAB-New Way

CAB-New Way

The Credit Access Business (CAB) is the new model in Texas for payday loans. In 2011, the Texas State legislature was embroiled in a battle to pass legislation to regulate the payday loan industry. Legislative sessions occur every two years in Texas and for at least the last three sessions, lawmakers and payday loan industry advocates have engaged in heated debates that did not produce any laws or regulations. The 2011 session finally produced two bills that were passed into law, House Bills 2592 and 2594.

With the passage of these laws, the official Credit Access Business license stepped in front of the once all encompassing and vague Credit Services Organization (CSO) model. The CSO model, registration, and need for a Third Party lender still remains, but, in 2012, the Texas government will close a once wide loophole with CAB regulations.

House bill 2594 requires that CSO’s who want to operate in the payday loan space now be licensed as a Credit Access Businesses (CAB) effective January 1, 2012. The new licensing process will consist of a thorough review of the former CSO by the new governing body of the payday loan industry, the Office of Consumer Credit Commissioner, or the OCCC. Applicants will undergo reviews not just of their business operation, but also of the principals involved in the CAB whose personal and business background will be requested. In addition, H.B. 2594 added more fees that licensees will be required to pay versus the past CSO registration. Lastly, quarterly transaction report filing is required by the OCCC, the first of which will be due in April 2012.

House Bill 2592 outlines new requirements related to notices and disclosures to maintain compliance as a CAB. Integration of new notices and disclosures are outlined for both retail and online marketplaces. Changes to customer documentation and procedures related customer communication are part of this bill’s intent, which is to clarify facts, monetary figures, and educate all consumers about the business arrangement. For example, CABs will need to cite other financial resources for customers beyond the payday loan option, discuss these options with customers, and post alternative lending choices in stores or online.

There are many details to discuss to fully understand the broad intent of the bills before January 1, 2012. The OCCC hosted several collaborative stakeholder meetings in the summer of 2011. Business owners, consumer advocates and those who will govern the industry all participated in collaborative conversations about the bill’s intent and real world implementation of new rules. The final version of rules related to the new laws is due to be released in October 2011.

 

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

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

by The CAB Man Texas on 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.  This likely means they will get back to CABs soon with a increase in examinations for us.

·         Zero investigations were done in the last year, versus 3 in the prior year.

·         Complaints for payday: down, from 114 to 97.  (down 15%!)

·         Complaints for title loans:  down, from 85 to 59. (down 30%!)

Market Trends for Q1-Q2 of 2019 vs. 2018 were reported versus the fiscal calendar info above:

·         Repo totals are trending upwards and it is thought by the OCCC to coincide with longer payment terms. This was a specific comment, outside of the charts provided and that makes the topic significant. 

·         The OCCC is monitoring this issue to see if it levels out or needs compliance emphasis so head’s up there.  Repo is precarious and they do tend to look deeply into it.  Be 100% dialed in with your compliance measures on this topic, make all of the proper disclosures, send the notices at the correct intervals, and maintain records with excellent organization.

·         # Customers obtaining unsecured loans went up!  In 2018 it was 787,700 and in 2019 it was 799,292 or 1.5% increase.

·         # Customers obtaining title loans went down.  In 2018 it was 135,619 and in 2019 it was 129,163 or 4% decrease.

·         Repossessions went up 32% to 22,005 from 16,620.  These have been hovering in the 16-18k range since 2015 but 2014 had 20,879.

·         There are now just 1,756 locations reporting activity.  Down from 1,832 which is a 4% decrease.

Here is a link to the packet (go to page 249): https://www.fc.texas.gov/sites/default/files/2019-10/101819-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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Military Lending Act Questions

Military Lending Act Questions

by The CAB Man Texas on November 21, 2016

As many of you may know, in October 2016 we all began operating by new rules in regards to how we must treat “Military” applicants and their dependents.  We now need to verify what has been told to us by the applicant regarding their status on this topic.  The burden is on us as operators to confirm the status versus the past where the applicant simply checked the “yes” or “no” boxes on the application form or on the consumer loan documents.

You can go directly to the Department of Defense’s MLA website to perform the checks or if you employ Credit Reporting Agencies like Factor Trust or Microbilt they have the checks integrated.  Here’s a link to the MLA website: https://mla.dmdc.osd.mil/single_record.xhtml

My very close personal friend and true Southern Gentleman Max Wood at Borrow Smart Alabama put out the following thought provoking questions on this Military Lending Act topic and I wanted to pass those along to our site visitors.  Please review and due your part to make sure your operation is as strong as it can be on this subject!

1. Will will be violating SCRA rules if we don’t rewrite an existing customer who on paper said they were not a covered borrower but when accessing the DOD we discover they are?

2. On a busy day, clerks want to run DOD reports in the morning for all customers due that day so they won’t have to slow down the loan making process during the day. Is this acceptable or do they have to run reports only when customer is standing in front of them?

3. How will we determine if someone is the dependent of an active member in the military or reserves without having that family members information?

4. Will we need to continue to check the DOD website after the first advance of someone is permanently disabled, or is of social security age?

5. Will the following provide safe harbor: MLA website, “big three” credit bureau, SCRA website, retail credit report ostensibly re-reporting from “big three”?

6. If a product APR is too high for Military but was obtained pre-military, may it be re-financed with or without additional credit (not a payday loan)?

7. Does the database search cover all exposure for noncompliance with MLA?  In other words if the database search is performed and comes back clear does that cover any possible violation?

8. What exposure do we have for spouses, family members for this.  What are some of the questions we need to ask to determine all related persons to the applicant are covered?

9.  If the website is down when the search is performed is it enough to document that and have them sign a disclaimer stating that they are not an active member of the military.  Would it be a good       idea in this case to run a search after the site is up and document the file?

10. My understanding of this is basically when a new contract is executed a search has to be performed.  What are the exceptions to this?

11.  For an installment  loan renewal does a new search have to be performed when the loan is renewed?

12. For a flex loan (open line of credit) do we need a search when the customer takes out an advance on their existing line?

13. For a Tennessee Title Pledge loan do we have to do the search prior to sending a renewal letter for an extension?

14. Is there any reason to take existing Military Act questions off of the existing contracts?

15.  Is there anything that needs to be done re pre-10/3 loans (e.g., scrub against the database)?

16. Do MLA restrictions apply to “mere” loan extensions?

17. In AL a title pawn is actually a traditional pawn transaction (title is held as merchandise for pawn) – unlike most other states.  At the end of 30 days the customer may pay the fee (interest) and extend for another 30 days.  There are a couple of ways people do this.

a) After the initial transaction and contract each subsequent extension is done by accepting the payment and extending for another 30 days.  If the loan amount increases the old contract is paid off and a new contract is generated that reflects the new amount.  This transaction type would require a check of the database, I am sure.  BUT, if there are no changes or principal is paid down and only a receipt is printed, is a check of the database required?  To further complicate the situation some operators use a different pawn number for each extension and others do not change the number.  Would a check of the database be required under either or both scenarios?

b) A new contract is generated at each extension.  My guess is that a database check will be required.

18. If a lender is in compliance with the new MLA rule including the database check, is there a problem with a lender continuing to obtain a signed military form (the model form) for our files in addition to the new required database check confirmation certificate ID number?

19. Are there any prohibitions to refusing to lend to a covered borrower?

20.  A new customer divorced her husband who was active duty.  She received no spousal support in the divorce yet her MLA search lists her as a dependent.  The database had not been updated to reflect her as no longer deriving income from her now ex-husband.  Is it acceptable to provide a loan to the customer as long as income and divorce documentation is provided?

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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Fun with the filing of liens on Motor Vehicles in Texas.

Fun with the filing of liens on Motor Vehicles in Texas.

by The CAB Man Texas on November 17, 2016

Dealing with Texas DMV office who refuse to allow Credit Access Businesses to add a lien to a vehicle (for a Title Loan)  when the registered owner of the vehicle has outstanding warrants, tickets, toll fees and or recent child support payments on file as delinquent can be a problem.  We have seen this in a few counties recently – it appears to be referred to as a “Scoff Law”.

The only fix we have seen that works is to simply process the lien in a different county. There are 254 counties in Texas, and each tend to do their own thing!

Another instance that has come up with some title loan borrowers is when one consumer who has a title loan with a CAB sells their motor vehicle to another consumer without the buyer getting the title.  The buyer in these cases can either be tricked into doing this or may just be careless / unaware.

For the CAB in this case, because they actually have the title and the lien, they “own” the vehicle and would be forced to repossess if the seller stops paying on the loan (this would be what triggers awareness of any issue other than if the buyer comes back later and asks for the title).

If you find yourself in this predicament as a buyer or a CAB, follow the law and rely on other professionals to consult you on the best course of action.  For CABs (as always) follow the proper disposition methods in compliance with Texas Business and Commerce Code Chapter 9.

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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Cab Manual

Cab Manual

The CAB Manual contains the basic information needed to start the licensing and compliance transition process. Ordering this manual from C.A.B. Consulting and Brokerage will assemble all necessary elements to begin the transition process, eliminating the need to go to more than one place for initial information, guidance, and paperwork. The manual materials are offered in print and online for our client’s reference when needed.

Summary of included items:

•Transition process summary and opinion letter with important information related to the new license and licensing process
•Compliance summary and opinion letter with important information related to notices and disclosures
•Reference copies of important laws and regulatory publications
•Rules summary with interpretation and comments
•License application documents
•Inclusion of company members to the CAB Consulting and Brokerage Newsletters, Emails, and RSS Feeds

C.A.B Consulting and Brokerage does advise clients who purchase this manual that further research will be necessary and seeking the consultation of an attorney who specializes in the payday loan industry is recommended.

To learn more about details and specifics of the CAB Manual, contact C.A.B Consulting and Brokerage at Michael@CreditAccessBusiness.com or call 214.293.8676.

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Borrow Smart

Borrow Smart

What is Borrow Smart? It is a compliance program for Credit Access Businesses in Texas.

Borrow Smart: A Compliance Platform
• A shared compliance resource and support system.
• Internet platform for reference, Q&A, and quick response.
• Policy and procedure products, along with training and communications.
• Managed in partnership with other industry associations.
• A communication vehicle to disperse rules and regulations instantly.
• Built for Credit Access Businesses by Credit Access Businesses, in a language they understand.

OCCC & CFPB Compliance
• Specific education and guidance on OCCC rules for payday and auto title loans.
• CFPB Examination Manual review and discussion.
• Collaboration with OCCC and CFPB to learn priorities and communicate to operators.
• Communication on CFPB matters and preparation for future action by the agency.

Industry Oversight
• Assess compliance weaknesses of Credit Access Businesses in Texas and provide solutions.
• Monitor discussions of new laws and regulations.
• Track, categorize, and help resolve consumer complaints.
• On site compliance audits conducted by third parties.

Building a Foundation for Financial Success: A Financial Education Program
• A basic financial education seminar on budgeting, understanding credit, and saving.
• Currently offered across the Southeast to high school and junior college students.

E-Learning System: Web-based Training for Store Associates
• Easy to use online resources and tools for continual training.
• New hire training and refreshers.
• Full-time support for store associates, access to Borrow Smart 24/7.
• In-store manuals and reference guides, along with consultation when needed.

For Now…
• Borrow Smart should be shaped as the conversation dictates during Texas’ 83rd Legislative Session.
• New rules and regulations that result from the session can be disseminated quickly and uniformly.
• Changes to Best Practices can be communicated, adjusted, and distributed quickly.

Real Results
• A visionary program with a long-term perspective.
• Increases accountability for Credit Access Businesses in Texas.
• Saves state resources by relying upon an industry with a self-regulated compliance program.
• Encourages competition while allowing the market to decide rates and loan options.
• Ease of burden for operators will likely result in lower rates, and better service for consumers.
• Texas CABs will be in position to pass CFPB and OCCC examinations with flying colors.
• Makes Texas a leader in the US with the largest and most innovative payday compliance program.

Borrow Smart is a concept initially shared with CAB Consulting by the good people at Borrow Smart Alabama, namely a gentleman named Max Wood. For more than a year, CAB Consulting and Borrow Smart Alabama have been discussing ways to bring the Borrow Smart concept to Texas. The time is now, and with the legislative session in full swing the strengths of Borrow Smart should be offered up for consideration by all Texas CAB stakeholders.

As Borrow Smart in Texas begins to get traction, let’s consider how the industry as a whole can benefit from the uniformity, accountability, and consumer financial choice that Borrow Smart strives to ensure. Call or email Michael Brown with CAB Consulting to discuss at 214-293-8676 or Michael@CreditAccessBusiness.com.

Borrow Smart Alabama has many online resources available – take a tour by clicking on the links below. Let’s tailor Borrow Smart to Texas – imagine the possibilities!

Borrow Smart Alabama Financial Education: http://www.borrowsmarteducation.com/

Borrow Smart Alabama Compliance Overview: http://www.borrowsmartcompliance.com/

Borrow Smart Alabama Code of Fair Lending: http://tggtest.com/BorrowSmart/code.htm

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CSO-Old Way

CSO-Old Way

The Credit Services Organization (CSO) model is the business model that payday loan companies operate under in the State of Texas.

The CSO is defined by the Texas Credit Services Organization Act and Section 393 of the Texas Finance Code. The code defines a CSO as an entity that provides services that improve a consumer’s credit rating, obtain an extension of credit for the consumer, or provides assistance to a consumer regarding credit improvement or extensions of credit.

In reality, all payday lenders in Texas are not true payday lenders.  They do not sell a traditional payday loan compared to other states, and, in contrast, they call themselves CSO’s. In Texas, a registration certificate is required and allows payday loan businesses to act, more specifically, as brokers who arrange for a consumer to receive a loan from a particular Third Party.

The customer pays fees to the CSO for arranging the loan in an amount typical to the industry, $20 per $100 for example.  On the contrary, there is no limit to what can be charged by the CSO. The Third Party, called the lender, issues the money to the consumer and is paid interest for that loan of usually just under 10 percent APR.

Why do all companies in the payday loan business in Texas operate under this model? After this creative business model launched it quickly landed in court as Lovick v. Rite Money. The case was heard in the U.S. Fifth Circuit Court of Appeals, where an opinion was issued, which held that payments made to the CSO were not to be considered interest. The model was deemed viable, and once word spread about the ruling and the viability of the CSO model, companies began adopting it and expanding rapidly.

Lending was easy under the CSO model when all that was needed was a registration certificate and a Third Party lender to sell loans. After the new laws, House Bills 2592 and 2594, were passed in 2011, adopted regulations changed the payday loan business. Now called the Credit Access Business (CAB), payday loan businesses are required to have a new license, pay more fees, and operate in compliance with a new set of required notices, and disclosures.

The new laws go into effect on January 1, 2012. At that time, CSO’s must have their CAB license in place alongside the new required consumer notices and disclosures in order to be compliant.

Who We Are

Who We Are

Who is C.A.B. Consulting and Brokerage?

C.A.B. Consulting and Brokerage is a payday industry based business that assists other companies in the traditional consulting sense as they operate in the dynamic financial services sector.  We learn needs and call on our industry knowledge and relationships to provide solutions to our clients.

Also, we operate as a broker who facilitates new relationships between companies and collaborate to help them execute deals.

Our strengths are centered around payday industry licensing, compliance, capital, acquistions, procedures, and operations in the payday and auto title loan industy. It is our goal to build relationships, understand needs, and provide pathways to achieving goals.

C.A.B. Consulting is headed by Michael Brown.  Michael attended high school at W.B. Ray in Corpus Christi, Texas.  He later attended the University of Texas at Austin and graduated with a degree Radio Television and Film in 1996.  In his later years at Texas he began focusing on Advertising Sales and started his career by working for several Radio and Television stations.  In early 2003 Michael and a trusted partner started an online payday loan website named My Cash Time.com.  Starting with just an online lending operation, the company eventually grew into the retail sector where they operated stores in Utah, New Mexico, and Texas.

Michael is married to a stunningly beautiful, intelligent, and wonderful woman named Amanda. Together they have two children, Dylan and Amelia.

What We Do

What We Do

Experience areas are listed A – Z.  Scroll down to read!

CAB Manual

The CAB Manual contains the basic information needed to start the licensing and compliance transition process. Ordering this manual from C.A.B. Consulting and Brokerage will assemble all necessary elements to begin the transition process, eliminating the need to go to more than one place for initial information, guidance, and paperwork. The manual materials are offered in print and online for our client’s reference when needed. Summary of included items:

•Transition process summary and opinion letter with important information related to the new license and licensing process
•Compliance summary and opinion letter with important information related to notices and disclosures
•Reference copies of important laws and regulatory publications
•Rules summary with interpretation and comments
•License application documents
•Inclusion of company members to the CAB Consulting and Brokerage Newsletters, Emails, and RSS Feeds

Collections and Debt Sale

C.A.B. Consulting and Brokerage has a unique relationship with a debt selling platform that assists clients in liquidating their bad debt portfolios quickly and easily to the highest bidder.  Finding the right source for this end of your business is critical, and partnering with the right people is step one.

Competitive Advantage

The most competitive businesses provide benefits to customers beyond just a payday loan in exchange for their commitment.  C.A.B. Consulting and Brokerage possesses a set of specific opportunities that are available for companies to utilize in this manner.  Let us work with you to implement new programs that broaden your relationship with your customers.  Providing benefits and increasing communication will give your business a competitive edge in a crowded marketplace.  Also, improving the company image and marketing online is an area of great need for our small to midsize payday loan clients.

Compliance Consulting Services

C.A.B. Consulting and Brokerage works for Texas CAB’s who are planning a transition towards a new Credit Access Business license or those who already have.  We are all still relatively new to “CAB,” so a continual review is smart, where one might pinpoint potential red flags, and gain more understanding the laws & rules.  C.A.B. Consulting and Brokerage has turn-key plans ready to ensure that each CSO-CAB we work with will have their license request approved, be prepared.  We are also working with an on-site independent auditor who can do audit files and troubleshoot problems in stores across Texas.

Consumer Loan Contracts

Many operators invest thousands of dollars with industry experienced attorneys to have their Consumer Loan Contracts written.  While it is always recommended to consult an attorney, some operators choose to rely on the contracts generated by their software company.  At times, these documents are used by many different clients of the software company, are basic, and do need re-working so they can be precisely applicable to your business.  CAB Consulting offers a set of Consumer Loan Contracts that have been written by an industry experienced attorney.  And, over the last 18 months CAB Consulting has worked hard to make improvements on the contracts as OCCC rules and regulations began to be more clearly understood by the industry.  Having a strong set of Consumer Loan Contracts is a top priority and a great way to ensure a passing grade in your next OCCC examination.

Corporation Startup, Filings, and Formation

The filing of corporate setup documents for LLC’s and Corporations is something that CAB Consulting ended up being positioned to do more for convenience of the client and the saving of time.  Working through Texas SOS and the IRS website to get a Tax ID #, Register a Business, or file an assumed name certificate can be done much more quickly by CAB Consulting versus some of the other “pay for service and filing” companies online.

Education

C.A.B. Consulting and Brokerage aims to be the go to source of information as payday and auto title loan businesses transition from Credit Service Organizations to Credit Access Businesses.  January 1, 2012 was the mandated date for all current payday and auto title loan operators in Texas to be certified as CAB compliant businesses.  C.A.B. Consulting and Brokerage will not only educate clients on the details of the transition, but develop long term relationships to build stronger companies into the future. Small to mid-size operators in Texas need to be informed about the laws & rules, to be kept abreast of developing changes, and to maintain a continual focus on operating in a compliant fashion.  C.A.B. Consulting and Brokerage is building its business around the needs of these clients.

Investment Opportunities

From time to time CAB Consulting is approached by individuals and organizations that are looking to passively invest in the payday industry.  There are two channels in which this can be done: the Third Party Lender, or investment on the operator side with growth capital.  As well, startups and existing operators who are growing contact CAB Consulting to discuss their desire or need for investment capital.  If you need money for growth or have capital available for investment in the industry, contact us.

Licensing

CAB Consulting has helped dozens of entities get licensed in the State of Texas as a Credit Access Business.  We work with operators to prepare for the submission of the CAB Application, make sure its the best it can be, communicate with OCCC during the process, and handle any hiccups that come up along the way.  So far, not a single client we have worked with has been denied a license!

Marketing & Advertising Ideas and Strategy, Customer Customer Acquisition Plans

CAB Consulting has developed a wide array of different marketing and advertising ideas, plans, and strategies, both B2B and B2C.   When working with startups many times they are new to the business and considerable time must be spent with these clients on strategy, how to get customers in the door, and how to engage consumers once they are in the lobby.  Sample materials, web designs, referral programs, and dba recommendations are just a few of the areas where CAB Consulting can step in and help a startup get their business opened with tools for success.

Payday Boot Camps

Two close associates of CAB Consulting are Tri-House Consulting and Paid 2 Day, since June of 2012 our three groups have been putting on the “Payday Boot Camp.”  The Payday Boot Camps are two day in-store training sessions for persons interested in starting a payday or auto title loan business.  Typically, the clients fly in from their hometown location, and spend two full days in the Paid 2 Day store.  The agenda covers both a “macro,” and “micro” look at the industry, where the attendees are taken through detailed strategy sessions, their business plans are reviewed, commented on, and adjusted if need be.  Training in a “live” store also gives the attendees a chance to watch a loan get funded and see a payment get taken.  Instruction on in store compliance and store organization is also provided.  After the Payday Boot Camp our goal is for the operator to have a clear vision of where they are headed with their startup, and to go along with that they will have direct experience with some of the biggest keys to running  successful payday business.  Paid 2 Day is owned by Danny Verrette, a California payday lender in Lake Forest, about 50 miles South of Los Angeles.  The Paid 2 Day store is setup like a typical payday loan store, but also has offices and a conference room that are ideal for instruction during camp sessions.  Tri-House Consulting is headed by Jer Ayles-Ayler.  Jer is the original source behind the Payday Boot Camp and is also an industry leader, blogger, conduit, and overall expert in high level thinking when it comes to payday business.

Sales and Acquisitions

Because of the relationships we have in the industry many times CAB Consulting is approached by organizations that are looking to acquire businesses.  CAB Consulting has connected many existing clients to buyers and played a role in the many successful sale transactions.  Some deals have required full and complete leadership by CAB Consulting, and others have simply been the exchange of the contact information between parties.  Being a part of a multitude of deals has given CAB Consulting important perspective on how the process works, how to arrive at values for a business, market valuations, licensing transition, and third party lender issues that come along with the transaction.

Software Vendor Recommendations and Introductions

CAB Consulting has direct experience with many software providers in the payday industry.  Over time, we have accumulated a valuable database of information about these providers and have placed it all into CAB Consulting Software Matrix.   The Software Matrix is comprised of 50 important questions that every company should ask when evaluating what software option may be best for them.  The answers come directly from representatives of the companies and can be a huge time and money saver.

Supplementary Documents, Procedures, Checklists, Requirements

All of the “supplementary” documents necessary for business to operate can be provided by CAB Consulting.  Documents necessary for compliance such as Fee Schedules and OCCC Consumer Disclosures do take some time, and require the ability to calculate APR%.  As well, internally created documents like customer application forms, denial letters, privacy policy, requirements for approval, employee guides, and evaluation checklists are available to clients.

Third Party Lender Connections

An important component to the CSO-CAB is its choice of Third Party Lender. C.A.B. Consulting and Brokerage represents several entities who are actively seeking to step in as the lender for CAB approved businesses. If growth capital is a need for your business, C.A.B. Consulting and Brokerage has the necessary relationships to support your growth.

Variety of loan products: Payday, Title, Installment

The Credit Access Business license covers payday loans, auto title loans, and installment loans in Texas.  CAB Consulting directs its clients on each of these business models, can assist in development of fee structure, and provide competitive data on other CAB’s fee structure, state averages, etc.