Category Archives: Uncategorized

Also………..” The Fed also discovered that denial rates for companies seeking microloans were higher than for companies applying for larger loans in the past year.” So what does this all mean? The transactional costs of lending are disproportionately higher when the loan amounts begin to decrease. Banks are taking less risks.  If you think about it, they’re taking […]

Credit card late payments are at an all time low.  My theory is that better technology is making it easier to pay.  Remember the days when people used mail in their credit card payments.  The advent of automated notifications has also made it easier to pay. One are that I would like to see added […]

An Internet lender in the UK, MCO Capital, has been shut down for allowing itself to be duped by fraudsters who impersonated more than 7,000 people..  It turned into a big problem when the company tried to collect on the victims of identify theft. It’s hard to believe that there was nothing in place to […]

Pretty good article in Inc magazine titled, “5 Rules: How to Avoid a Spam Filter“. Here are the 5 tips: Create a unique subject title.   Avoid ‘salesy’ trigger words.  Keep the format simple.  Use graphics sparingly.  Limit the number of URL links.  From a technical standpoint here are the common keywords that get caught […]

The Wall Street Journal writes: “A bipartisan team of House lawmakers is pushing new legislation that would allow nonbank lenders, including those typically known as payday lenders, to choose to operate under a federal charter and avoid dealing with a patchwork of often conflicting state laws.” The operative words here are “…avoid dealing with a […]

“Capital One Financial Corp. (COF) will pay a total of $210 million to settle charges of deceptive marketing of credit card “add-on” products such as payment protection and credit monitoring.” I guess their 3rd party marketing partner was too aggressive with the add ons.  Hard to say if $210 million means anything to Capital One.  It […]

You probably do not want to mess with people after their bankruptcy debts have been discharged.  Capital One and their third party collection company are getting sued. The article is at the Huffington Post.

Pretty comprehensive article in Bloomberg titled:  “Payday Lenders And Indians Evading Laws Draw Scrutiny“.  It’s about the Internet payday lending industry and Native American tribes. State governments have either banned or have put a regulatory choke hold on cash advances, which has led to the Sovereign Nation model.  So far, the Sovereign model has been […]

Pennsylvania House Bill 2191 has been introduced to try and get payday lending legal again in the state.   The bill not allow rollovers and the cost is around $14 per $100.   The bring up all the normal stuff: cycle of debt, usury, impossible to regulate, APRs.  What they don’t say is where you can […]

What are the challenges of offering installment loans? The Finance Charge on the TIL disclosure can look very large.  Usually, this is mitigated if there is no prepayment penalty.  For a simple interest loan, the borrower can pay off at any time.  They pay for the interest that’s accrued up until the payoff date. Complying […]