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How Lending to Strangers Can Become Your Most Profitable Venture Yet!

Jer Ayles-How to Start a Consumer Loan Business

Lending Money to Strangers

Customer Referral Programs

Here’s an expansion on the idea of “Smart Referral Programs” for lenders, specifically focusing on providing excellent customer service and enhancing client engagement through various strategic actions:


1. Personalized Customer Service: By ensuring customer service representatives (CSRs) address clients by name, lenders can create a more personalized and welcoming environment. This practice not only fosters a sense of belonging but also increases customer loyalty and satisfaction.


2. Genuine Engagement: When CSRs display genuine care through smiling and proactively offering help, it significantly enhances the client experience. This approach should extend to clarifying doubts and providing explanations, further demonstrating the company’s commitment to its clients.


3. Incentives for Positive Reviews: Motivating CSRs with financial incentives for gathering positive reviews, such as $5 for every 5-star review, can drive better customer service while simultaneously enhancing the company’s reputation online.


Note that the Platform offers an easy way for you to acquire 5 star reviews for virtually all social media platforms and your websites and Blogs!


4. Special Gestures of Appreciation: For example, covering a client’s payment as a gesture of goodwill when they have paid an equivalent of the principal in fees can be a powerful loyalty builder. This surprise act of kindness, which may cost $15-$25, is significantly less than the cost of acquiring a new customer, particularly when considering the lifetime value of a client which can be several thousand dollars.


5. Facilitating Convenient Payments: Enabling online payments for loans can significantly enhance convenience for clients, encouraging timely payments and reducing logistical barriers that might prevent on-time payment submission.


6. Upgrading Physical Spaces: Updating the lobby and other client-facing areas to be more welcoming and comfortable can make a significant positive impact on client perceptions and comfort, thereby enhancing the overall customer experience.


7. Empowering and Training CSRs: CSRs should be well-trained not only to handle queries effectively but also to be proactive in their customer interactions. This could include offering additional services or assistance that might benefit the client, thereby preemptively addressing potential issues or needs.


8. Implementing customer payment alerts via SMS and email significantly improves your customer payment transactions. Know that your customers dont really want to talk to you!


These strategies collectively enhance customer retention and satisfaction, creating a more favorable business environment and increasing the profitability of lending operations through repeat business and positive word-of-mouth.

Questions? Need help? Introductions? Brainstorm?

Reach out to Jer at :


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Rethinking APR: The Misguided Metric Hurting Borrowers

APR Rates

Misconceptions Around Short-Term Loan Costs and the Ineffectiveness of APR

Understanding Short-Term, Small-Dollar Loan Expenses

Short-term, small-dollar loans, often misconstrued in cost discussions, have a straightforward expense structure for consumers: borrowing $100 typically incurs a flat fee of $15 until the next payday.

This model is transparent, with no hidden charges or escalating interest, ensuring that the repayment amount remains constant regardless of the repayment timeframe.

The Flawed Application of Annual Percentage Rate (APR)

Despite regulations mandating lenders to disclose fees as a dollar amount and an APR, the latter is inappropriate for short-term loans.

APR calculations assume the extension of a loan across a year, which misrepresents the actual usage pattern of these loans, often limited to a few weeks or months.

This is akin to comparing the cost of a daily parking space to an annual lease, distorting the true cost of short-term financial solutions.

The Disruption Caused by APR Caps

Attempts by some legislatures to introduce APR caps, essentially at 36%, severely hinder lenders’ ability to operate viably.

For instance, under such a cap, the fee on a $100 loan barely reaches $1.38, which is insufficient to cover operational costs, let alone allow for sustainable business practices.

Moreover, research indicates such caps drastically reduce loan accessibility for subprime borrowers, pushing the average loan size up and reducing the overall loan volume, contrary to consumer welfare.

The Real-World Implications of a 36% APR Cap

The imposition of a 36% APR cap not only fails to cover lenders’ operational costs but also reduces the availability of credit for consumers in dire need.

Historical data and modern analyses suggest that the costs and risks associated with small-dollar lending justify higher interest rates to maintain service accessibility.

Ironically, efforts to protect consumers by capping rates at 36% limit their access to essential financial services during emergencies, driving them towards less regulated or more costly alternatives.

A Call for Reevaluation

The ongoing debates and legislative efforts to cap APRs at 36% overlook the nuances of short-term, small-dollar lending.

A more nuanced approach, acknowledging the unique nature of these loans and the essential service they provide millions of Americans, is crucial.

Legislators and consumer advocates must reconsider the impact of stringent caps on the populations they aim to protect, ensuring that financial regulations foster consumer protection and access to necessary credit.

Ready to Brainstorm? Choose a day/time: LINK

Questions? Need help? Introductions?  Reach out to Jer at :


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Lending to the Masses: Referral Idea

Small Dollar Lending: Idea for Customer Referrals

To express appreciation for its clients and underscore continued support of their ongoing financial goals, has launched a customer referral program, awarding existing clients an impressive $110 per new customer referral. [NOTE: All-in, it’s common for lenders to spend as much as $180+ to fund a loan!]

Through the customer referral program, existing Bargain PaydayLoans clients are given a unique code that can be shared with friends and family members to access an online loan application. 

Fourteen to twenty-one days after the referral receives their funds, $110 is deposited into the client’s account on file with The funds can be withdrawn as cash or used to pay loan balances down.

“Bargain Payday Loans means business, and our clients know we are always there to help them meet their financial goals. From unexpected medical costs to car accidents or other emergencies, we understand that life is not always a straight line, so we are committed to supporting our customers and the people they care about.”

“Through our groundbreaking customer referral program, we are excited to spread the word about our company’s unique roster of customized lending opportunities and reward our happy, loyal customers for referring their friends and family to us,” said Frank Waters, Vice President of Operations for

About is a tribal lending company wholly owned by Holding Company and its members, a sovereign nation in the United States of America. is dedicated to providing short-term financial solutions to Americans in need. 

Since its formation in 2018, has built a nationwide reputation for spearheading the industry’s most innovative financial products backed by a singular commitment to client service excellence. 

The company combines an unparalleled team of experienced and dedicated financial professionals with state-of-the-art online technologies to meet emergency financial needs successfully. 

In addition to its sought-after portfolio of loan choices, offers comprehensive customer loyalty and financial education programs expressly designed to help solve money challenges in the short term and improve clients’ lives in the long term. 


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CURO Declares Chapter 11

CURO Group Holdings Corp., a publicly traded consumer lender, has entered Chapter 11 bankruptcy proceedings. This form of bankruptcy involves the reorganization of a debtor’s business affairs, debts, and assets. 

The Company is an omni-channel consumer finance company founded more than 25 years ago to meet the growing needs of consumers looking for convenient and accessible financial and loan services. The Company designs its customer experience to allow consumers to apply for, update and manage their loans in the channels they prefer—in branch, via mobile device or over the phone.

The Company currently operates store locations across 13 U.S. states and eight Canadian provinces (with additional services available online in eight Canadian provinces and one territory) and employs approximately 2,856 employees in the U.S. and Canada.

CURO Group Holdings Corp.’s decision to declare bankruptcy under Chapter 11 is deeply rooted in several strategic and financial challenges it faced despite its efforts to transform and adapt to a changing economic landscape. Here’s an analysis of the key reasons behind this decision:

1. Strategic Transformation and Operational Efficiencies: CURO undertook significant efforts to improve operational efficiencies and shift its business model towards longer-term, higher-balance, and lower-interest-rate credit products. This shift was aimed at reducing regulatory and reputational risks. However, transforming a business model involves significant costs and risks, especially when moving away from established, albeit higher-risk, financial products.

2. Acquisitions and Divestitures: CURO completed acquisitions and sold its legacy high-risk business lines as part of its strategic shift. While such moves are intended to streamline operations and focus on core, more sustainable activities, they also involve substantial financial outlays and can lead to short-term liquidity pressures.

3. Liquidity Challenges: CURO faced liquidity challenges exacerbated by unsuccessful refinancing efforts. Potential refinancing lenders viewed the company’s corporate balance sheet as over-leveraged, making it difficult to secure new financing on favorable terms. These liquidity challenges were critical, as they directly impacted CURO’s ability to meet its operational needs and financial obligations.

4. Failure to Meet Forecasted Cash Levels: The company’s liquidity is strained by its failure to meet forecasted cash levels following the dispositions of less desirable business lines. Such financial discrepancies can quickly escalate into crisis levels for companies operating in the high-stakes financial services sector, where cash flow predictability is crucial.

5. Deleveraging and Securitization Facilities: CURO’s bankruptcy filing aims to significantly deleverage its corporate balance sheet and extend its Securitization Facilities, which are vital for its ongoing operations. The inability to refinance these facilities on time highlighted the urgent need for a comprehensive restructuring.

6. Plan for Reorganization: The bankruptcy plan involves significantly restructuring CURO’s debt, including reinstating certain senior prepetition debt and an equitization transaction in which lenders become equity holders. Such a plan requires the protection and framework provided by Chapter 11 proceedings to ensure legal and financial restructuring occurs in an orderly and court-supervised manner.

7. Minimizing Disruptions: By allowing all general unsecured creditors to recover fully, CURO aims to minimize disruptions to its operations. The Chapter 11 process provides a structured pathway for the company to transform its balance sheet while continuing to operate and serve its customers, which would be more challenging outside bankruptcy protection.

In summary, CURO’s decision to enter Chapter 11 bankruptcy proceedings is a strategic move to address its over-leveraged balance sheet, liquidity challenges, and operational restructuring. The company aims to emerge from bankruptcy with a deleveraged balance sheet and sufficient liquidity to support its long-term viability, leveraging the legal and financial framework provided by Chapter 11 to restructure its debts and operations orderly. This approach reflects CURO’s belief in its underlying business model and its commitment to continuing to serve its customer base with high-quality financial services.

Overview of the Situation:

CURO Group Holdings Corp. (CURO) is a company that provides loans to consumers. Recently, it decided to file for Chapter 11 bankruptcy. This doesn’t mean the company is shutting down; instead, it’s restructuring its finances to reduce debt and improve its financial standing.

What is Chapter 11 Bankruptcy?

Chapter 11 is a chapter of the Bankruptcy Code that allows businesses to reorganize their debts. It’s often referred to as “reorganization” bankruptcy. Unlike Chapter 7, where a business must liquidate its assets to pay creditors, Chapter 11 allows the company to restructure its debts and try to become profitable again.

Key Points from CURO’s Press Release:

1. Restructuring Support Agreement (RSA): CURO entered into an agreement supported by many of its lenders. This agreement is a plan to restructure the company’s debt, including loans and notes (a type of debt security).

2. Voluntary Chapter 11 Reorganization: CURO filed for Chapter 11 to implement its financial restructuring plan. This is a strategic move to manage its debts more effectively.

3. Debt Reduction: The restructuring plan aims to reduce CURO’s debt by about $1 billion. This reduction will save the company around $75 million annually in interest payments, which can be used for long-term growth investments.

4. Business Operations Continue: Despite the bankruptcy filing, all CURO branches remain open, and their operations are unaffected. This means customers can still use CURO’s services without interruption.

5. Debtor-in-Possession Financing: CURO has secured $70 million in new financing from its stakeholders to keep the company operating smoothly during bankruptcy. This type of financing is unique because it’s given priority over existing debt, ensuring the company has the funds it needs to continue operations.

6. Support from Creditors: CURO’s lenders have broad support for the restructuring plan, indicating that they believe in the company’s ability to reorganize and emerge stronger.

CURO Press Release [LINK]

CURO Q4 Earnings Presentation [LINK]


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Texas Credit Access Business [CAB] License




Texas Credit Access Business

As of the date of this notice, we have not received the fees to renew one or more of your Credit Access Business Licenses. All licenses will cancel non-renewable if fees are not received by December 31, 2023. If your license is not renewed by 12/31/2023 and expires, you will need to cease activity and apply for a new license.


Due to current mailing delays, we strongly encourage all licensees to complete their renewal in ALECS. The renewal period for CAB is open now and will close on December 31, 2023. Licenses not renewed by 12/31/2023 will cancel non-renewable. Credit Access Businesses licenses may not be reinstated. If a CAB license cancels-non renewable, the business will need to cease activity and apply for a new license.

How to renew:
1. Log in to ALECS
2. Click on Manage My Business (left hand column)
3. Click on “Renew License” under the License heading
4. Select Credit Access Business from the drop-down menu at the top
If your license(s) does not appear after this step, click on “Dashboard” and then on the “My business Transactions” tab to see if there are not any initiated transactions there. If there are, you will need to delete these initiated transactions in order to be able to complete the renewal.

5. Click the box(es) of the license(s) you need to renew
6. Check the “By checking this box, I confirm that I would like to renew the selected licenses.” Box
7. Click License Renewal and complete the payment information (Accepted forms of payment include check and card)


Credit Access Business Licensed Location: $800
Inactive* Credit Access Business License: $450

(*Inactive – License is not in use and business is NOT conducting activity pertaining to the license. Licenses not inactivated before 11/27/2023 will pay the Credit Access Business Licensed Location Amount of $800. Inactivating a license while the business is still conducting activity covered under Texas Finance Code 393 could subject a business to unlicensed activity penalties.)

Frequently Asked Questions
How Do I Print My License? Click on Manage My Business, click “Print License”. Select “Credit Access Business” from the “Select License” drop down at the top and the select the box next to the license you want to print and click on “PDF to Print”. (OCCC CAB licenses do not display an expiration date. You do not need to print a new one unless you do not already have it on display at the place of business.)

How Do I Confirm My Renewal? Click on “Dashboard” from the menu on the left and from the “My Business Tab” you can view the renewed date. If the date is 11/27/2023 or after you are renewed for the 2023-2024 fiscal year.

I have ceased all activity pertaining to the license and will not be renewing, how do I proceed? IF the business has ceased ALL activity covered under the applicable chapter of the Texas Finance Code, the business may submit a surrender request in ALECS under Manage My Business. The request will be reviewed and is not automatically approved. A business that surrenders an OCCC license while the still conducting activity covered under the applicable chapter of the Texas Finance Code could be subject to unlicensed activity penalties.

If you are creating an ALECS account for the first time and receive the red message that states, “The SSN/FEIN is found in our System and already claimed by an OCCC User”, the system is alerting you that an account has already been created/exists. A license can only be accessed and renewed from the original account the license was approved from.

If you are unable to complete the renewal after following the steps above, please email us at

Thank you!
Licensing Department
Office of the Consumer Credit Commissioner


Must-Read: The Hidden Consequences of the Senate’s 36% APR Loan Cap Bill!

Predatory Lending Elimination Act (S. 3549)

Analyzing the Impact of the Proposed 36% APR Cap on Consumer Loans

Consumer Loan APR Rates

The U.S. Senate is considering a significant legislative move that could redefine the consumer lending landscape in America.

The “Predatory Lending Elimination Act” seeks to implement a nationwide 36% annual percentage rate (APR) cap on all loan products.

This measure aims to extend the protections currently enjoyed by servicemembers under the Military Lending Act (MLA) to all consumers, including veterans and Gold Star families.

Summary of the Bill
The bill, introduced by Senators Jack Reed, Jeff Merkley, Sherrod Brown, and others, proposes to cap the effective interest rate on consumer loans at 36%.

This move is rooted in the successful implementation of the MLA, which has significantly limited predatory lending practices targeting military personnel.

The proposed legislation aims to protect all Americans from exorbitant interest rates, often reaching as high as 664%, and to prevent them from falling into debilitating debt traps.

Critique and Concerns
While the bill’s intentions are commendable, significant concerns exist regarding its potential impact on a large segment of American consumers. Notably:

1. Access to Emergency Funds: A staggering 60% of U.S. consumers live paycheck to paycheck, including 40% of households earning over $100,000 annually.

These individuals often rely on small-dollar, short-term loans during financial emergencies. The proposed cap could severely limit their access to these vital funds.

2. Creditworthiness Issues: Many lenders do not require formal credit checks, allowing consumers with poor credit scores to qualify for loans.

The bill could disenfranchise these consumers from the traditional credit system.

3. Alternative Credit Options: There is concern that the bill needs to adequately address or propose alternative credit options for consumers whom the cap will impact.

This gap could leave many in a precarious financial position without a viable fallback.

4. Economic Ramifications: The abrupt implementation of this cap could have far-reaching economic consequences, potentially disrupting the lending market and affecting credit availability.

The Predatory Lending Elimination Act, while well-intentioned in protecting consumers from exploitative lending practices, may have unintended consequences that disproportionately affect those in urgent need of financial assistance.

It is crucial to consider a balanced approach that safeguards consumers from predatory lending while ensuring their access to emergency funds is not hindered.

A more comprehensive strategy might include financial education, alternative credit solutions, and gradual implementation to minimize potential negative impacts on those living paycheck to paycheck.


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Subprime Lender Enova fined $15MM by CFPB for “widespread illegal conduct”

Enova International: Examining Regulatory Compliance and Industry Impact


In the competitive world of fintech, compliance with regulatory standards is pivotal in establishing trust and maintaining operational integrity.

The recent developments involving Enova International and the Consumer Financial Protection Bureau (CFPB) highlight the complexities and consequences of regulatory adherence in the financial technology sector.

Enova’s Regulatory Challenge:

A $15 Million Settlement with CFPB

Enova International, a renowned online lender, recently faced significant regulatory scrutiny.

The CFPB imposed a $15 million penalty on Enova for engaging in practices deemed illegal.

These actions included unauthorized withdrawals from customers’ bank accounts, deceptive statements regarding loans, and the cancellation of loan extensions.

This penalty is not Enova’s first encounter with regulatory challenges; in 2019, they settled with the CFPB for $3.2 million for similar violations.

Industry Implications of Enova’s Regulatory Non-Compliance

Enova’s situation is a stark reminder of the importance of regulatory compliance in the fintech industry.

The repercussions extend beyond financial penalties to include reputational damage, operational restrictions, and the potential loss of consumer trust.

For Enova, this meant a ban on offering certain consumer loans and the necessity to link executive pay to regulatory compliance.

The case also underscores the CFPB’s ongoing focus on subprime lenders.

Navigate the complex world of financial regulations with confidence. Click here to connect with top compliance experts who can safeguard your business against costly fines and enhance your regulatory strategy.


Addressing the Challenges:

Enova’s Response and Future Steps

In response to the CFPB’s order, Enova acknowledged the issues, attributing them to unintentional technical and processing errors, which the company claims to have rectified.

Enova’s president of consumer lending emphasized the company’s commitment to fair customer treatment and the enhancement of business practices to minimize errors and address issues promptly.

The Broader Context: Fintech Compliance and Consumer Protection

The Enova case is emblematic of broader challenges facing the fintech industry.

As technology evolves, so do the risks and complexities associated with financial transactions and data security.

Regulatory bodies like the CFPB play a crucial role in ensuring that fintech companies operate within legal boundaries and prioritize consumer protection.


The Enova-CFPB settlement is a significant event in the fintech landscape.

It highlights the need for stringent regulatory compliance and ethical business practices.

As the industry grows, companies must navigate the regulatory environment carefully to ensure longevity and maintain consumer trust.


Unlock the Secrets of Payday Loan Company Licensing: A Comprehensive Guide!

Payday Loan License

Payday Loan Licensing  

1. Introduction
– Brief Overview of Payday Loan Companies Licensing
– Importance of Licensing
2. What is a Payday Loan?
– Definition
– How Payday Loans Work
3. The Necessity of Licensing for Payday Loan Companies
– Protecting Consumers
– Regulation Compliance
– Building Trust with Customers
4. Licensing Process
– Application
– Requirements
– Evaluation
5. Federal Regulation of Payday Loans
– The Consumer Financial Protection Bureau (CFPB)
– Federal Laws and Regulations
6. State Regulation Overview
– Differences Among States
– State Licensing Agencies
7. The Cost of Licensing
– Fees
– Renewals
– Penalties for Non-Compliance
8. Maintaining a License
– Annual Reports
– Audits
– Renewal Process
9. Challenges in Obtaining a License
– Strict Requirements
– Time-Consuming
– Constant Regulatory Changes
10. Benefits of Being Licensed
– Enhanced Credibility
– Legal Protection
– Customer Trust
11. Common Licensing Mistakes to Avoid
– Incomplete Application
– Not Understanding State Laws
– Lack of Preparation for Audits
12. How to Ensure Compliance
– Regular Updates on Laws and Regulations
– Hiring Compliance Officers
– Utilizing Compliance Software
13. Conclusion
14. FAQs

Brief Overview of Payday Loan Companies Licensing

Entering the payday loan industry requires adherence to various legal and ethical standards, primarily through acquiring licenses.

This article illuminates the importance of licensing, procedures, and the intricacies involved.

NOTE: You’re interested in collaborating with a Native American Indian tribe with regards to obtaining a lending license? Visit

Importance of Licensing

Licensing ensures compliance with laws designed to protect both payday loan businesses and consumers while fostering trust among clients.

What is a Payday Loan?


A payday loan is a short-term, high-cost loan intended for sudden financial emergencies.

How Payday Loans Work

These loans are typically repaid on your next payday, with lenders charging fees rather than traditional interest rates. 

I cannot overly emphasize how expensive payday loans are when measured on an annual basis! 

APRs for payday loan products are similar to staying in a hotel for a year rather than renting an apartment.

Refer to my Annual Percentage Rate [APR] table below!

The Necessity of Licensing for Payday Loan Companies

Protecting Consumers

Licensing safeguards consumers from predatory practices, providing a layer of accountability and security.

Regulation Compliance

Companies must adhere to federal and state regulations, with licensing ensuring conformity to these rules.

Note: Even Native American lending entities must comply with federal regulations! [Leaning Rock Finance.]

 Building Trust with Customers

Licensed companies are more trustworthy, attracting customers who value legitimacy and transparency.

Licensing Process


Initiate the process by submitting an application to relevant state and federal agencies, complete with necessary documentation and fees.


Prospective lenders must meet stringent criteria, including demonstrating financial stability and business acumen.


Agencies meticulously review applications, scrutinizing applicants’ credentials and business plans to ensure consumer protection.

Federal Regulation of Payday Loans

The Consumer Financial Protection Bureau (CFPB)

The CFPB oversees payday lenders, implementing regulations to prevent unfair, deceptive, or abusive acts.

Federal Laws and Regulations

Numerous laws at the federal level govern payday lenders, with licensing essential for legal operation.

State Regulation Overview

Differences Among States

Each state has distinct rules and regulations regarding payday lending, influencing the licensing process. 

Several states outright ban payday loans. This is a real shame! States that outlaw payday loans achieve nothing regarding their constituents’ demand for small-dollar, short-term loans!

These states simply drive their residents to online lenders, many of whom lack licensing and transparency.

State Licensing Agencies

States have specific agencies responsible for issuing licenses and monitoring payday loan companies.

The Cost of Licensing


Application and licensing fees vary, as do costs associated with renewals and maintaining good standing.


Licenses must be renewed periodically, incurring additional fees.

Penalties for Non-Compliance

Non-compliant companies face hefty fines and potential loss of licensure.

Maintaining a License

Annual Reports

Licensed companies must submit annual reports detailing business operations and financial statuses.


Prepare for regular audits designed to verify compliance with state and federal regulations.

Renewal Process

Understand and adhere to renewal protocols to maintain active licensure.

Challenges in Obtaining a License

Strict Requirements

The stringent criteria for licensing can pose significant hurdles for aspiring payday loan companies.


The application and review process is extensive and time-consuming.

Constant Regulatory Changes

Stay abreast of continually evolving regulations to ensure compliance and prevent licensing issues.

Benefits of Being Licensed

Enhanced Credibility

Licensing boosts your company’s credibility and appeals to consumers seeking reliable lending services.

Legal Protection

Operating with a license provides legal protection and supports smooth business functionality.

Customer Trust

Clients are more likely to trust and engage with licensed companies, fostering loyalty and repeat business.

Common Licensing Mistakes to Avoid

Incomplete Application

Ensure your application is comprehensive and accurate to avoid delays or denials.

Not Understanding State Laws

Familiarize yourself with state-specific regulations to ensure full compliance and prevent legal complications.

 Lack of Preparation for Audits

Implement robust internal controls and documentation practices to facilitate seamless audit processes.

How to Ensure Compliance

Regular Updates on Laws and Regulations

Stay informed about legal changes and adjust your practices accordingly to maintain compliance.

Hiring Compliance Officers

Dedicated or fractional compliance officers can help navigate regulatory landscapes, ensuring your company adheres to all legal requirements.

Utilizing Compliance Software

Invest in technology designed to simplify compliance, reducing the risk of human error and facilitating adherence to complex regulations.

Hint! It’s all about your Loan Management Software [LMS] Contact me for recommendations: 


Understanding and navigating the licensing process is vital for payday loan companies.

Ensuring compliance with both state and federal regulations not only protects your business but also builds trust with consumers, ultimately contributing to your company’s success and longevity in the competitive payday loan market.


1. Why is licensing crucial for payday loan companies?
– Licensing is mandatory for legal operation, consumer protection, and building trust with clients.
2. What challenges might I face in obtaining a license?
Applicants often grapple with strict requirements, a time-consuming process, and constant regulatory changes.
3. How can my company maintain compliance?
– Stay updated on laws, hire compliance officers, and utilize compliance software.
4. What are the consequences of non-compliance?
– Companies risk fines, penalties, and loss of licensure for failing to comply with regulations.
5. Can the licensing process vary by state?
– Yes, each state has unique rules and regulations regarding payday lending and licensing.

How we can help you

How to start a payday loan business, an installment loan business, a car title loan business...

Click the link to order our newly updated Course: "How to Loan Money to the Masses!"




*Start here: More

APR Rates

🤑All Talk, No Cash: Why Trade Associations Are Like That Friend Who ‘Forgets’ Their Wallet!💔

Alternative Financial Services Industry Fights CFPB

All right, let’s break this down in simpler terms. You’re in the small-dollar lending business, and there’s some legal stuff going on that could affect you. The CFPB, or Consumer Financial Protection Bureau, made a rule about small business lending. Some trade associations are telling the CFPB to hit the pause button on this rule because they think it’s creating unfair conditions for different lenders. They’ve written a letter to the CFPB’s head honcho, Director Chopra, to sort this out.

So, what’s the big deal?

1. Court Case and Preliminary Injunction: A court in Texas put a temporary hold on the rule but only for specific people who complained (plaintiffs). This means some lenders have to follow the rules, and others don’t. That’s confusing and not fair, right?

2. Trade Associations Step In**: A bunch of groups like the American Financial Services Association and the Mortgage Bankers Association, who represent lenders like you, are saying, “Hey, this is making it tough for us to know what to do. Can we please sort this out?”

3. Effective Dates and Compliance: The rule was supposed to come into play on specific dates, but now, with the court action and all, it’s a mess. The trade associations say, “Let’s delay this rule until we figure out all the legal stuff, which might not be until July 2024.”

4. What Can Happen Next: The CFPB has a couple of options. They could formally propose to delay the rule and allow people to give their thoughts for 30 days. Or, they could change their approach in the court case to apply the hold on the rule for everyone, not just the folks who complained.

5. Efficiency and Litigation: The trade associations think that if the CFPB doesn’t make things clear, more people will go to court, and that’s just a waste of time and money for everyone.

All Show, No Go: Trade Associations Do the Macarena While Plaintiffs Tango with CFPB!

Whether trade associations should help pay the plaintiffs’ legal fees in a case fighting against the CFPB’s regulations is nuanced. From a legal and strategic perspective, there are pros and cons to consider:


1. Strength in Numbers: Combining resources could help create a more vigorous fight against the CFPB, potentially making the injunction more likely to apply to a broader group, not just the initial plaintiffs.

2. Unified Message: By financially supporting the plaintiffs, the trade associations could help ensure that the legal arguments are aligned with their members’ best interests.

3. Public Relations: It might create positive PR for the trade associations, as they could publicly argue that they are fighting against confusing or unfair regulation that affects their members.

4. Resource Pooling: Legal battles are expensive. They can help sustain a lengthy fight if needed by contributing to the legal fees.

5. Broader Impact: A win in court against the CFPB could benefit all members of the trade associations, not just those who are plaintiffs. It could be seen as an investment in the broader business environment for their industry.


1. Cost: Legal battles can be costly and time-consuming. This would be an additional cost for trade associations and, by extension, their members.

2. Risk of Loss: If the case is lost, it could set a negative precedent for the industry, and the resources spent on legal fees would be a sunk cost.

3. Divergent Interests: While the plaintiffs and the trade associations may have similar objectives, they might not have the same goals. Financially supporting the plaintiffs could limit the trade associations’ control over the litigation strategy.

4. Member Backlash: Some members might not agree with the legal action and could resent their fees being used in this manner.

5. Regulatory Scrutiny: Actively fighting against a regulatory agency could attract more scrutiny to the trade associations and their members, potentially leading to stricter regulations in the future.

So, would it have been smart? It depends on a variety of factors, including how aligned the trade associations are with the plaintiffs, the potential benefits vs. the risks, and the appetite for a potentially lengthy and expensive legal battle.

So, what does this mean for you, my lender friend? Keep an eye on this situation. Depending on how the CFPB and the courts decide, you might have more time to adapt to the new rules, or you may need to make quick changes to how you do business.

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