Subprime Lending KPIs That Tell You If You Are Actually Profitable
TL;DR: Most subprime lenders think they are profitable because they track the wrong numbers. The four KPIs that actually matter are charge-off rate by vintage, roll rate by loan type, cost per funded loan, and net yield after defaults. These numbers show whether your underwriting, collections, and unit economics are really working before the damage […]
The 36% APR Cap: What Actually Happens When You Pull the Ladder
TL;DR A 36% APR cap sounds like protection. It isn’t. The math doesn’t work at $4.15 in revenue on a $300 two-week loan. Lenders know it. So they leave. The borrower still has the emergency. The car still needs fixing. Tuesday still comes. They just have fewer legal options and more expensive illegal ones. You […]
Texas CAB CSO Licensing Update
ATTN: Texas CAB Licensing Update – Transition to NMLS Published February 27, 2026 Author: Jer The Texas Office of Consumer Credit Commissioner (OCCC) has officially shut down Credit Access Business (CAB) functionality in the ALECS system as part of the transition to the Nationwide Multistate Licensing System & Registry (NMLS). CABs will begin the official […]
Subprime Lenders Lose More Money to Caution Than They Ever Lose to Default
They just never see it on a spreadsheet. Quick answer:Most subprime lenders do not get crushed by default. They get crushed by caution. When your “book” is undercapitalized, you start making cash decisions that look like risk decisions. You tighten, you stall, and the biggest loss never hits the P&L. It walks out the door […]
The USA wide ‘Predatory Lending Elimination Act’ Doesn’t Eliminate Predatory Lending. It Eliminates Lending.
170 organizations just asked Congress to make it illegal for you to serve the borrower no one else will touch. Senate Bill S3793, the “Predatory Lending Elimination Act,” would slam a 36% APR cap on virtually every consumer credit product in America. Credit cards, installment loans, car title loans, payday loans… All of it. Senator […]
Car Title Lending in 2026: Best States, Biggest Traps
Car title lending is still profitable in 2026, but enforcement is tighter. See the best states, the catches, and a compliance-first operator checklist.
New York STOP Act Kills Tip-Based Lending Models and Told the Entire “Tip-Based Lending” Industry to Drop Dead
The STOP Act is coming. And it’s not just New York’s problem. Here’s what happened: New York legislators introduced a bill that treats every dollar a consumer pays for a wage advance, tips, expedited fees, and membership charges as a finance charge. Slap those numbers into the APR formula, and suddenly the “no-interest” earned wage apps […]
Payday Loan Demand 2026: A 10% Credit Card APR Cap Would Be the Best Thing That Ever Happened to Subprime Lenders
Payday loan industry trends If Washington squeezes pricing power out of revolving credit, banks will not absorb the hit. They will change the rules. That is not speculation. That is how unsecured lending works. When you cannot price for risk, you stop taking it. President Trump has floated a one-year 10% cap on credit card […]
The Rule That Was Supposed to Save the Poor But Made Them Poorer
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