Category: Licensing

Texas Payday Loan Businesses – Take a CAB!

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Texas Payday Loan Businesses – Take a CAB!

by The CAB Man Texas on September 2, 2011

What is a CAB?  Well, if you are a payday loan business in Texas, it’s now you starting January 1, 2012.

The title CAB stands for Credit Access Business, and along with the name change comes many changes for payday loan businesses. The current CSO (Credit Services Organization) model will evolve next year thus transitioning all payday loan businesses into CABs, which requires these businesses to comply with new regulations. Understanding the new regulations is vital to continuing your payday loan business.

Licensing is one portion of the CAB transition. Under Texas House Bill 2594, which addresses the new licensing process, current CSOs will be required to attain a CAB license and will be subject to a thorough review.   Applicants will undergo reviews not just of their business operation, but also of the principals involved with the CAB’s whose personal and business background will be requested.

What else is included in the CAB licensing process? A new application and detailed reports must be submitted to the state and an approval must be obtained in order for current businesses to operate legally after January 1, 2012. In addition, all Texas payday loan businesses must file quarterly reports, with the first being due April 2012.  The reports will summarize the prior three months of transactions and will be reviewed by the OCCC (Office of Consumer Credit Commissioner), which is the new governing body of the industry in Texas.  This process is new, it is an unknown, and will take some thought.  Are you ready to take this on?  In addition to the day-to-day operations of your payday loan business, you must create a plan to ensure compliance with the OCCC, which is a big undertaking.

The good news? CAB Consulting and Brokerage understands all the details required for your payday loan business to transition from a CSO to a CAB.  They’ve been in the payday loan business since 2003 and have recently participated in the rule making process at the Capitol in Austin to ensure thorough understanding of the CAB model and to voice preferences and concerns about proposed rules.

Don’t get bogged down by the details – contact CAB Consulting and Brokerage at 214-293-8676.   Let them inform you, handle the details of your transition, and execute the process so you can continue to do business in Texas.

Check back in for details about the new notices and disclosures requirements under the new CAB regulations.

{ 4 comments… read them below or add one }

Randy Olson May 1, 2013 at 10:59 pm

could you please send me some info about how we go about getting a loan office for Pay Day type loans started ? What license and how to apply would we need for Kerrville, Texas? What type of rules do we need to follow for our loans and where do we get a example of the contracts?
Thank you for any help you can give us.
Randy Olson

Reply

admin August 10, 2013 at 7:43 am

Hi Randy,

Congrats on your new biz. We’ve got sample docs, forms, and know-how for this. My team is focused on Texas payday ans car title loans.

Call me at 214-293-8676 Michael

Reply

Don Dunlap August 9, 2013 at 2:33 pm

I am brand new at this business idea and would like start up consulting advice

Reply

Anonymous August 10, 2013 at 7:38 am

Give us a call,Don. PH# on my web site

Reply

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Texas Payday Loan Businesses- Are You Ready for CAB?

Posted on by TeamLeader

Texas Payday Loan Businesses- Are You Ready for CAB?

by The CAB Man Texas on September 2, 2011

To all you Texas CSO’s, mark your calendars because January  1, 2012 may very well be the most important day of your year.  After January 1, 2012, the days of your routine CSO renewal will be over.

The new CAB, or Credit Access Business, model that goes into  effect January 1, 2012 requires payday loan businesses to augment their current  CSO model.  This means a new license will  be needed, and a more lengthy and in depth application are in your future.  Also, new disclosures will be added to your documents  and service process to be in compliance.  House Bill 2592, the notices and disclosures portion of the  new regulations, outlines new requirements on many facts and figures that must be disclosed to customers.  Many payday  loan businesses will need to rework their in-store policies, procedures,  signage, and documentation.

What else does Texas House Bill 2592 state? Payday loan  lenders must understand the new license display requirements. CABs must cite other resources for customers beyond the payday loan option, discuss these options with customers, and post alternative lending options in stores.  Yes, you may be asked to post information about your competition in your business!

What does all this mean for payday loan business owners that are busy with day to day operations? Without a dedicated employee to complete,  file, and execute the necessary paperwork and changes to continue operating the business, it is going to fall on them to do the work.  This could be difficult to do without being bogged  down by details or reaching out for someone who knows more.

The good news? CAB Consulting and Brokerage understands all  the details required for your payday loan business to transition from the simple CSO model of the past and into a CAB.  They’ve been in the payday loan business since 2003 and have recently participated in meetings at the Capitol in Austin to ensure thorough understanding of the CAB licensing process, along with the ins and outs of the new notice and disclosure requirements.

Don’t get bogged down by the details. Contact CAB Consulting and Brokerage at 214-293-8676.  Let them inform you, handle the details of your transition, and execute the process so  you can continue to do business in Texas.

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Texas Payday Loan Businesses – Take a CAB!

Posted on by TeamLeader

Texas Payday Loan Businesses – Take a CAB!

by The CAB Man Texas on September 2, 2011

What is a CAB?  Well, if you are a payday loan business in Texas, it’s now you starting January 1, 2012.

The title CAB stands for Credit Access Business, and along with the name change comes many changes for payday loan businesses. The current CSO (Credit Services Organization) model will evolve next year thus transitioning all payday loan businesses into CABs, which requires these businesses to comply with new regulations. Understanding the new regulations is vital to continuing your payday loan business.

Licensing is one portion of the CAB transition. Under Texas House Bill 2594, which addresses the new licensing process, current CSOs will be required to attain a CAB license and will be subject to a thorough review.   Applicants will undergo reviews not just of their business operation, but also of the principals involved with the CAB’s whose personal and business background will be requested.

What else is included in the CAB licensing process? A new application and detailed reports must be submitted to the state and an approval must be obtained in order for current businesses to operate legally after January 1, 2012. In addition, all Texas payday loan businesses must file quarterly reports, with the first being due April 2012.  The reports will summarize the prior three months of transactions and will be reviewed by the OCCC (Office of Consumer Credit Commissioner), which is the new governing body of the industry in Texas.  This process is new, it is an unknown, and will take some thought.  Are you ready to take this on?  In addition to the day-to-day operations of your payday loan business, you must create a plan to ensure compliance with the OCCC, which is a big undertaking.

The good news? CAB Consulting and Brokerage understands all the details required for your payday loan business to transition from a CSO to a CAB.  They’ve been in the payday loan business since 2003 and have recently participated in the rule making process at the Capitol in Austin to ensure thorough understanding of the CAB model and to voice preferences and concerns about proposed rules.

Don’t get bogged down by the details – contact CAB Consulting and Brokerage at 214-293-8676.   Let them inform you, handle the details of your transition, and execute the process so you can continue to do business in Texas.

Check back in for details about the new notices and disclosures requirements under the new CAB regulations.

{ 4 comments… read them below or add one }

Randy Olson May 1, 2013 at 10:59 pm

could you please send me some info about how we go about getting a loan office for Pay Day type loans started ? What license and how to apply would we need for Kerrville, Texas? What type of rules do we need to follow for our loans and where do we get a example of the contracts?
Thank you for any help you can give us.
Randy Olson

Reply

admin August 10, 2013 at 7:43 am

Hi Randy,

Congrats on your new biz. We’ve got sample docs, forms, and know-how for this. My team is focused on Texas payday ans car title loans.

Call me at 214-293-8676 Michael

Reply

Don Dunlap August 9, 2013 at 2:33 pm

I am brand new at this business idea and would like start up consulting advice

Reply

Anonymous August 10, 2013 at 7:38 am

Give us a call,Don. PH# on my web site

Reply

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Information for Texas CSO’s on Credit Access Business licensing

Posted on by TeamLeader

Information for Texas CSO’s on Credit Access Business licensing

by The CAB Man Texas on September 13, 2011

There’s decent list of new requirements that the Texas CSO needs to know about when they are applying for their new Credit Access Business license this fall.  Substantial input has been provided by many CSO’s in Texas as far as the new rules go, and recently I attended two stakeholder meetings in Austin at the Capitol Building to contribute my thoughts.

In the past I have not been to such a meeting and so I was all ears. At the beginning I wasn’t sure if the atmosphere was going to be contentious, if the members of the Finance Committee were going to be friendly, or if they were truly seeking input. I have heard of some heated confrontations on the House floor so I was kind of expecting the same. But, it was actually very co-operative, and the stakeholder input was asked for more often than it was given believe it or not.

From a high level – the OCCC is going to dig a little deeper this time around and take a close look at both sides of your business model versus your prior CSO application. Information about owners all the way down to 5% may be asked for, and they want important information for the lender as well.  Reports are going to need to be submitted quarterly, there are new ways that you must disclose information to consumers, and certain procedures will be required that have not been mentioned before.  And, there’s going to be several more fees charged to the licensee.

All in all, the forum in Austin was warm, and the word “flexible” was used often by the OCCC board members.  An example of the OCCC listening to stakeholder input and their being flexible was in regards to the request for Credit Access Businesses to provide their contract forms with their CAB application. This request was met with concern, the concern was expressed, and as a result the documents will not be required with the application.

October 21 is the next date CSO’s need to be aware of – OCCC will be firming up proposed rules and rules changes.  I will keep everyone posted on my blog – looking forward to your return.

Questions?  Feel free to call me! Michael Brown at C.A.B. Consulting and Brokerage (214-293-8676).

 

{ 2 comments… read them below or add one }

Luis g Garcia May 21, 2013 at 4:40 am

I need info about the CAB licence what the cost you charge for this license I ready to open Mr title loans and pay day loans en eagle pass tx but I need you help to fix the premises or licenses

Reply

admin August 10, 2013 at 7:41 am

214-293-8676 call us first for an exploratory call

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Do not forget to renew your Credit Access Business license with the OCCC

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Do not forget to renew your Credit Access Business license with the OCCC

by The CAB Man Texas on November 29, 2016

Renewal dates are as follows:  Renewal period starts November 15th and December 1st renewals are due. Any licenses that are not renewed by midnight of December 31st will expire.

Do not forget this it is a nightmare if you do, you will have to go through the license process again.  We have seen this happen to clients and members before and the OCCC is not as forgiving on this topic as they may be in other areas.

Here is a link to the OCCC website for more information: http://occc.texas.gov/industry/cabs/licensing-forms (look at right margin of screen).

All of the renewal process can be handled by the OCCC’s online portal called “Alecs” – if you have not created an account for your license – go here to learn how: http://occc.texas.gov/sites/default/files/uploads/misc/setting-up-account.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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C.A.B. Consulting and Brokerage – Michael Brown

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C.A.B. Consulting and Brokerage – Michael Brown

by The CAB Man Texas on September 8, 2011

Michael Brown of C.A.B. Consulting and Brokerage has recently stepped away from operating the payday loan business he started in 2003 to begin working with Texas CSO’s as they become “CAB’s” or Credit Access Businesses. Michael has made it a priority to learn as much as there is to know about the rules that Credit Access Businesses will be asked to abide by starting in 2012, and he wants to share that information with you. From there, it is his goal to begin laying the groundwork for your business’s transition, and a long term relationship.

Ultimately C.A.B. Consulting and Brokerage has the goal of meeting your needs beyond Compliance. Can we help you raise Capital? Do you want to sell off your collections portfolios? We will also fight against government regulations and negative public perception. C.A.B. Consulting and Brokerage wants the passage of the Credit Access Business laws to signify the beginning of the newest and best chapter in the life cycle of your company. Contact Michael and let him share with you how he envisions making that happen. Reach him directly at 214-293-8676, or via email at cabconbrokerage@gmail.com.

Focus Areas:

Licensing – if you are a CSO in Texas you are going to need a new license. Do you want to know what C.A.B. Consulting and Brokerage knows and do you want help getting a new Credit Access Business license?

Compliance – there are several new requirements that you need to be aware of in the way of disclosures to customers, and notices to customers. Do you want to know what they are and have you thought about getting assistance with implementing the necessary changes? (step-by-step planning, store and website corrections, owner training, and employee training)

Capital – do you need Capital for growth? Do you need a third party lender? C.A.B. Consulting and Brokerage has at least two parties that want to fund loans through your CSO / CAB – right now!

Collections – C.A.B. Consulting and Brokerage is allied with a very effective Collections company and they would like to have a chance to collect on some of your bad debt, or just buy it from you outright.

Association – C.A.B. is launching an Association for small to mid-size payday loan business owners that will be unlinke anything that has been done before.

Community Action – the Association will battle negative public perception, impact potential negative legislation, and make contributions to community in the form of education and money.

Competition – the Association’s programs will help consumers with more than just loans. An array of innovative programs will give your customers the opportunity to help themselves, make processes more convenient, and help consumers feel better about the relationship they have with their payday lender.

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Credit Access Business License Application to be released any day.

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Credit Access Business License Application to be released any day.

by The CAB Man Texas on October 26, 2011

I attended the Friday, October 21, 2011 O.C.C.C. Finance Commission meeting in Austin. The licensing rules were voted on and adopted. I was able to speak with Commissioner Leslie Pettijohn briefly and she told me that the Credit Access Business License applications could be released this week.

Today is Wednesday and so far no application, so let’s be on the lookout the next two days.  January 1, 2012 is just over 2 months away and it will be here before we know it.

I am ready, and have begun helping a number of new and existing Texas CSO’s in their preparation for next year.  C.A.B. Consulting and Brokerage clients are engaging the process head-on, and have positioned themselves to become stellar examples of compliant Credit Access Businesses in 2012.   If your business needs guidance or you have questions feel free to check in with me via email on telephone.

As soon as the application is released I will let clients, subscribers, and site visitors know.  Talk back soon!

To contact Michael Brown at C.A.B. Consulting and Brokerage, email cabconbrokerage@gmail.com or call 214-293-8676.

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Local Anti-Payday Loan Ordinances are popping up more and more.

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Local Anti-Payday Loan Ordinances are popping up more and more.

by The CAB Man Texas on September 15, 2011

Many of you are aware that city councils are taking action against payday loan businesses by passing local ordinances that limit retail payday loan stores, regulate the businesses, and add another set of rules that we would have to abide. Some industry advocates are even saying that certain requirements could result in many businesses having to fold up shop.

Can you imagine the headaches these ordinances would cause in Texas if you have not just a CSO registration with a CAB license, but also city licenses with regulations in all the different towns you have stores?

Needless to say, the cities aren’t working together to create one unified set of rules that each are going to impose, which would result in the rules being all over the map. Companies will hire compliance teams and their costs will increase, attorneys will be along for the ride, and legal exposure will be increasing. (in Dallas the violations are $500 each). Think about a company like Advance America with locations all over the state, would you like to oversee different compliance programs for each city they are in? It can be done, but who wants to and it makes no sense. Cities need to let the State do the work. We need to keep these ordinances from spreading. An ounce of prevention is worth a pound of cure, and I think we all need to remember that fact right now.

Payday loan businesses have to fight to preserve their right to free commerce by becoming involved in these local battles. The cities need to defer to the State level where it is the proper forum for these matters. If we get that done, we can work alongside the State lawmakers to create more unified and dually beneficial regulations. As of now, I am not familiar with any cooperation between cities and stakeholders, and the cities are not getting feedback from business owners in a collaborative way.

In Texas, a week after bills 2592 and 2594 passed (both payday loan regulation bills), Dallas passed its own ordinance that went way beyond what these bills accomplished. Dallas added its own set of policy that includes regulation, registration and reporting guidelines above and beyond the state directives. Next, Austin stepped forward and proposed its own set of regulations. Is Houston next? Lubbock? Consumer Services Alliance of Texas (CSAT) filed suit and now the legal battle is underway.

This week, I heard from Max Wood in Birmingham, Alabama. Max has a number of payday loan stores in Alabama and is the President of Borrow Smart. As well, Max is a part of the Council for Fair Lending in Alabama. He let me know that Birmingham is the latest local municipality to throw its hat into the payday loan regulation ring. The folks at Borrow Smart and the Council for Fair Lending swiftly responded to the city of Birmingham’s efforts to put a moratorium in place. His group aims to stop this and other local ordinances from spreading. To find out more go to this link:

http://www.tggtest.com/cfl/Misc/bhammoratorium.htm

Looking forward to keeping stakeholders updated on developments. Feel free to reach out to me anytime.

Email Michael at cabconbrokerage@gmail.com or call me at 214-293-8676.

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