Credit Access Business License Update
Credit Access Business License Update
The O.C.C.C. is getting very close to releasing the Credit Access Business License application. It could be another 7 to 10 days, if so that may be Friday, October 21, 2011.
The next O.C.C.C. Finance Committee meeting also happens to be on Friday, October, 21st 2011. In the meeting the “Consumer Disclosure Form for Credit Access Businesses” will be presented along with its accompanying rules. I was recently updated and given a sample document which illustrates some of the disclosures that will be required for a single payment payday loan. There will also be other versions and sample documents released for multiple payment payday loans, single payment auto title loans, and multiple payment auto title loans.
See below for a link to the document – take a look and tell me what you think. Again, this is only one sample and it is not for use in operations. Do you have any comments you wish to make about the disclosure form? Do you feel like this is too much information? Can you easily work this into your process? after you post your comments I will relay them to the Finance Committee.
Submit comments to me via email at cabconbrokerage@gmail.com
The devil is in the details
The devil is in the details
Check your work! Last week my team and I released a blog about Carlos Uresti, a San Antonio based Senator whose offices had been raided by the FBI. We happened to know that a politician by the name of Uresti in the San Antonio area had also written a bill that would attempt to “cap” all finance charges on Credit Access Business payday, installment, and auto title loans to 25% of the amount borrowed. Being that I am a rabid defender of our CAB clients, I sprang on the name “Uresti” immediately and assumed he was the same man who had written the bill – which was House Bill 1733.
We made two mistakes on the blog post. First, State Rep. Tomas Uresti wrote House Bill (“HB”) 1733 and Carlos Uresti did not. Second, we should have known that a Senator would not write a “House Bill” because they are not in the “House,” they are in the Senate! This was one day that our team totally messed up on the details – the blame is on me.
These errors were sharply pointed out to me and we pulled down the post right away. We have a lot of people reading our posts and people count on us to relay information. It is important to make sure we get them right. This oversight is a fresh reminder that the good old fashioned saying “the devil is in the details” is alive and well.
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
C.A.B. Consulting and Brokerage – Michael Brown
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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Do not forget to renew your Credit Access Business license with the OCCC
Do not forget to renew your Credit Access Business license with the OCCC
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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