This page is something that we hope will be a great resource for individuals and companies that want to become familiar with the “industry language.” Just like any industry, operators on the inside speak with a certain short-hand. The sooner you learn it, the faster you will adapt and feel as though you are an expert! Enjoy, and please submit your comments and suggestions, this will certainly add to the quality of the content.
ACH: abbreviation for Automated Clearing House. Many operators use “ACH” to automatically withdraw funds via an electronic debit to the customer bank account.
Alliance: loose partnership with independent operator, company, or other entity, no formal connection but commonly work together on different endeavors, utilizing exclusive strengths to build a better concept.
Bad Debt: the % of your the business’ loan portfolio that goes into default. Typically calculated monthly, by dividing the total of the principal that defaults, into the total received fee income for that month.
CAB: short abbreviation for Credit Access Business. This is the official license type for businesses in Texas who wish to offer payday and auto title loans. This is really the new-way of referring to Texas payday and auto title loan businesses, after January 1, 2012.
Compliance: the practice of properly implementing procedures and documentation as required by Federal or State Law, rules, codes, etc.
Credit Access Business: This is the official license type for businesses in Texas who wish to offer payday and auto title loans. This license requirement became effective January 1, 2012.
Credit Service Organization: Before January 1, 2012 this was all that was needed (license wise) if a business wanted to offer payday and auto title loans in Texas. Its a registration with the Texas Secretary of State. $100 + surety bond if you need one.
CSO: short abbreviation for Credit Service Organization. Before January 1, 2012 this was all that was needed (license wise) if a business wanted to offer payday and auto title loans in Texas. This is really the old-way of referring to Texas payday and auto title loan businesses.
OCCC: Office of Consumer Credit Commissioner in Texas. Also, just called the “O-Triple-C.” The OCCC issues licenses to Credit Access Businesses.
Office of Consumer Credit Commissioner: In Texas, also just called the OCCC or “O-Triple-C.” The OCCC issues many licenses here’s the list: Credit Access Business, Motor Vehicle Sales Finance, Pawn, Regulated Loan, Property Tax, and Commercial Motor Vehicle.
Pay-down: when a customer pays interest and fees due, plus an additional amount of principal, but does not pay the loan off in full. This is in between a rollover and a payoff.
Pay-off: when a customer pays off their loan in full as originally agreed.
Repo: slang term for repossession of a vehicle that was used as collateral for an auto title loan.
Rollover: really more of a payday industry slang term, describes when a customer elects to pay interest and fees only, instead of paying off the loan. The loan is then rolled-over and the due date is pushed back to the customer’s next pay-date, where it will be due again to be paid in full. Also, called a “re-finance” or an “extension.”