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?
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).
Texas Organization of Financial Service Centers donates $10,500 to purchase ballistic vests for Longview Police Officers.
Texas Organization of Financial Service Centers donates $10,500 to purchase ballistic vests for Longview Police Officers.
LONGVIEW, Tex. – Spurred by the senseless shootings of police officers in Dallas and elsewhere and promoting strong support for local law enforcement, four members of the Texas Organization of Financial Service Centers (“TOFSC”) have donated $10,500 to the Longview Texas Police Association to purchase ballistic vests.
The four companies making the combined donation — Texas Star, CashMax, Texas Thrifty Loans and Rapid Payday & Title Loan — operate storefront businesses in Longview and appreciate the outstanding public service and professionalism of the Longview Police Department.
“We have been overwhelmed with the outpouring of support from our community here in Longview,” said Sgt. Jimmy Purdon of the Longview Police Department. “Ballistic plates are a necessity for law enforcement in today’s climate. Officers need the highest level of protection available so they can go home to their families and continue to serve and protect our great community.”
The Longview Back the Blue support group has been raising money for the vests. Christy Purdon and Scarlet Bird launched the effort following the tragic July 10 shooting of five police officers in Dallas.
“Watching so many suffer such great loss made it even more apparent that we as a community needed to step up and do whatever we can to protect our officers,” said Christy Purdon, who is married to Sgt. Jimmy Purdon. “It is my belief that every officer across the nation deserves to be protected in the line of duty. They protect us each and every day, so why shouldn’t we protect them, too?”
Jay Pruett, owner of Texas Star, helped spearhead the donation for the vests.
“What we’ve seen — not just in Dallas but in too many places around the country — has been the horrific targeting and shooting of police officers,” Pruett said. “The police in Longview literally put their lives on the line everyday for us. This is the least we could do for them.”
Longview Police Department Detective Chris Bethard said he is “humbled and in awe of the generosity and support for law enforcement in our community.”
“In my 18 years of law enforcement, the climate of this profession has changed dramatically,” Det. Bethard said. “Due to those changes, the addition of ballistic plates has become a necessary piece of equipment to keep officers safe and give us the best chance of returning to our families. My family and I want to thank you for the support and dedication you give us as we serve this wonderful community.”
Ballistic vests costs about $800 a piece. With more than 100 commissioned officers, the Longview Police Department did not have the budget to purchase vests for every officer.
“I would personally like to show my gratitude to this group of businesses that reached out to me to show their support,” Christy Purdon said. “Their care and love for the community and its officers is heartfelt and will never be forgotten. There are truly no words that could ever show this group of businesses how much this donation means to us.”
Before the Back the Blue effort began, Scarlet Bird had never met Christy Purdon. But like Burdon, she has a strong and emotional connection to the Longview Police Department. She is engaged to Sgt. Donald “Chip” Koepke. The couple met when Sgt. Koepke saved Bird’s sister’s life after she was in a car accident.
“Over the last several months, we have helplessly watched the countless attacks on law enforcement,” Bird said. “Innocent officers have lost their lives for no reason other than being a police officer. I felt the need to make a difference.”
With a goal of raising $80,000, Longview Back the Blue began selling t-shirts and offering the opportunity for businesses and individuals to “sponsor” an officer’s vest.
“We are proud to be part of a community that supports our officers and their needs,” Bird said. “As we continue to work toward our goal, we strive to let the community know that no donation is too small; no act of kindness goes unappreciated. Along with contributions from other groups, we are just shy of the halfway mark in raising funds to outfit Longview’s patrol officers.”
The contribution from these companies is a strong example of how TOFSC members support communities across Texas, said TOFSC President Michael Brown.
“Our members are active in their communities,” Brown said. “They know their customers and they support and respect the job done by all law enforcement officers. TOFSC is proud to be part of an effort that protects those who protect us.”
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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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.
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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!