Texas Payday Loan Businesses- Are You Ready for CAB?

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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