YOUR PAYDAY LOAN INDUSTRY RESOURCE

 
Your EYE on the Payday Loan Industry
Payday Home

Purchase Reports

Learning Center
 Payday Loan Industry
 Payday Training Manual
 Payday Seminars
 Payday Newsletter
 Payday Loan History
 Payday Profits
 Payday Loan Alternatives
 Internet Business
 Valuations
 Success Stories
 CSO Model
 Payday Loan Franchises
 Check & ACH Verification
 Check Guarantee Program
 Boot Camp
 Text Messaging Strategy

New
 Car Title Loan Biz
 Vendors/Suppliers
 Payday Loan Blog
 Offshore Payday Loans
 Scrap Gold Business
 Scrap Gold Guru

Payday Loan Legislation
 USA Payday Legislation
 England Payday Legislation
 Canada Payday Legislation
 Australia Payday Legislation

For Payday Loan Operators
 Payday Training Manual
 Payday Loan Machines
 ATM Cards
 Payday Loan Software
 Collections
 Gramm-Leach-Bliley Act
 Internet Business
 Compliance Training
 Teletrack
 Call Center Solution
 Vendors & Suppliers
 Payday Loan Leads

For Payday Loan Investors
 Opportunities
 Earn 30% on Your Money
 Internet Business

Other Stuff
 Disclaimer
 Frequently Asked Questions
 Our Contact Info
 Borrow $500 Now
 Auto Title Loans
 Cash Advance
 Payday Loan Blog
 GoldIntoLoot.com

Subscribe at no cost to you for our Payday Loan Newsletter. The frequency is typically once each month. If you have an interest in the payday loan industry, YOU NEED OUR Payday Loan NEWSLETTER!

WE PROMISE to never sell, give-away, or abuse your contact info. You will receive a confirmation email from us immediately.

Payday Loan Alternative Approaches

Assuming you plan to operate in a state lacking current enabling legislation, our opinion is that it is wise to research and study the payday loan industry as thoroughly as possible; then enter anyway you can! Of course, your team must be composed of good legal and accounting expertise. Next, do whatever it takes to be aware of ANY legislation introduced in your locale. It is certain that the continued pressure on your regulators from the internet payday loan model, the Internet Service Provider approach, the call center approach and the legal payday loan businesses on your geographic borders will result in favorable legislation in your geographic area! This is inevitable. Consumers EVERYWHERE demand our payday loan product. It serves a gigantic need in the marketplace.

It is generally thought that instead of implementing the bank model, consider working to get your legislators to wake up to the inevitable and embrace the payday loan product. In the interim, prepare yourself to enter the business the day your legislature gives you the green light!

State regulators are focusing on the payday loan alternatives. The ISP model; the phone card; the sale-leaseback... THEY DO NOT LIKE THEM! Disguised loans! Alternatives! They would rather we worked to change the state law. Of course, MSN, Earthlink, and AOL all offer cash rebate programs with dramatic success. Why canít we utilize these tactics? If you can afford to litigate them or you plan to remain "under-the-radar", go for it.

ISP Approach With Cash Rebates
Again, HAVE A GOOD LEGAL TEAM! You will be attacked. This does not mean the cash rebate approach is not legal. It does mean you should research this model very carefully and keep your eyes on what the "big-boys are doing. And always consult competent legal counsel.

In late 2005, several of the larger payday loan companies began offering a "CSO" model in states like Texas, PA, AR, NJ, etc. The CSO model is a "Credit Services Organization. It is not regulated in most states.

In the "CSO Model", two separate independent organizations are created. The 1st is a credit services organization. The CSO offers credit counseling, credit score improvement, provides an extension of a consumer's credit, and acts as a loan broker. Ultimately, the CSO will underwrite and originate a loan and then place the loan with an unaffiliated lender who will fund the loan to the consumer. The CSO may charge whatever they wish for these services!

The Credit Services Organization Payday Loan ModelCSO Model is very new. It has been embraced by some of the largest players in the cash advance industry. These include Advance America, EZCORP, Cash America, QC Holdings, and First Cash Financial. The CSO model originated in Texas and is certain to become more popular in other states not having safe-harbor legislation presently.

Note that we offer a complete analysis of the Credit Services Organization Payday Loan Modelin our Payday Loan Startup & Training Manual If you are in a state in which this approach should be considered, it will ship free with the Manual.




Payday Home | Payday Loan Industry | Payday Training Manual | Payday Seminars | Payday Newsletter | Payday Loan History | Payday Profits | Payday Loan Alternatives | USA Payday Legislation | England Payday Legislation | Canada Payday Legislation | Australia Payday Legislation | Payday Training Manual | Payday Loan Machines | ATM Cards | Payday Loan Software | Collections | Gramm-Leach-Bliley Act | Stores for Sale | Earn 30% on Your Money | Disclaimer | Frequently Asked Questions | Our Contact Info | Borrow $500 Now | Vendors & Suppliers |