Another City Ordinance passes in Texas. (Canyon)
Another City Ordinance passes in Texas. (Canyon)
Canyon, Texas
- The City of Canyon, Texas has enacted a “Payday Loan” ordinance. Per News Channel 10 in Amarillo, the City Council of Canyon enacted the ordinance on Monday of this week. Canyon is located about 18 miles south of Amarillo and has a population of just over 13,000. The City of Amarillo said many of their lenders left after they enacted the ordinance and this apparently prompted Canyon to follow suit. Per the Texas Office of Consumer Credit Commissioner (“OCCC”), Canyon only has one active Credit Access Business “CAB”) license. That CAB is “Texas Car Title & Payday Loan.” With only (1) CAB for 13,000 people it can hardly be said that the market is saturated, in most markets there is about (1) CAB for every 5,000 in population.
- There are roughly (40) cities in Texas with either a City Ordinance or zoning restrictions regarding the “Payday Loan” businesses. Here is a link to the Texas Municipal League’s website regarding “City Regulation of Payday and Auto Title Lenders.” http://www.tml.org/payday-updates
Link to article: http://www.newschannel10.com/story/34448364/canyon-approves-to-restrict-payday-lenders
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.
CFPB Payday Loan Complaint volume continues to fall.
CFPB Payday Loan Complaint volume continues to fall.
Each month the CFPB releases a complaint report that shows complaint volume by product. The September, October, and November 2015 reports show that “payday loan” complaints were down by double digits when compared to the same period in 2014:
-12% over the same 3-month period of June-July-August 2014.
(September 2015 report: http://files.consumerfinance.gov/f/201509_cfpb_monthly-complaint-report-vol-3.pdf).
-24% over the same 3-month period of July-August-September 2014.
(October 2015 report: http://files.consumerfinance.gov/f/201510_cfpb_monthly-complaint-report-vol-4.pdf).
-20% over the same 3-month period of August-September-October 2014.
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Texas Payday Loan Businesses – Take a CAB!
Texas Payday Loan Businesses – Take a CAB!
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.
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May 1, 2013 at 10:59 pm
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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-
August 10, 2013 at 7:43 am
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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
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August 9, 2013 at 2:33 pm
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I am brand new at this business idea and would like start up consulting advice
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August 10, 2013 at 7:38 am
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Give us a call,Don. PH# on my web site
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OCCC releases CAB Quarterly Report data for 3rd Quarter 2016
OCCC releases CAB Quarterly Report data for 3rd Quarter 2016
- The average Payday Loan was $439 for single pay transactions and $557 for installment loan transactions.
- The average Title Loan was $1,230 for single pay transactions and $1,008 for installment loan transactions.
- The average CAB fee for Payday Loans was about $24 dollars per $100 borrowed on single payment transactions and $166 per $100 borrowed on installment transactions (which is about $14 per $100 every 14 days).
- The average CAB fee for Title Loan was $17.13 per $100 borrowed on single pay transactions and $88 per $100 borrowed on installment loan transactions (which is about $17 dollars per 30 days).
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