Category Archives: Uncategorized

Confirmation bias is a tendency of people to favor information that confirms their beliefs.   The CFPB does not identify with the short-term product or the people that use it.  They just don’t like it and their going to find any data they can find to build a case against the industry.  They want to […]

In the past, class action lawsuits have been more akin to extortion than resolution.  The Washington post writes, the Supreme Court voted 5 to 3 to hold up the arbitration agreement in a case between American Express and a group of retailers. My opinion is that most class action law suits are about making money […]

Integrity Advance is the latest of eight Internet lenders fined by a Minnesota judge writes the Star Tribune.  The company was fined $8m on 1,269 loans.  This is approximately $6k per loan.  This is ridiculous   It’s obvious that Minnesota is very hostile when it comes to unlicensed Internet lenders. It’s not surprising that lenders operate outside […]

Business Week wrote an article titled, Payday Lenders Evading Rules Pivot to Installment Loans. The trend of large payday lenders moving to installment products.  Lets be honest, payday loans have a huge target on their back.  An installment loan can be no different than a mortgage loan and it’s fundamentally better than a credit card […]

Think Finance seems to be a step ahead.  Ever since the NY Times lambasted Chase for improprieties relating to the ACH system, the wheels have been turning.  Their next product goes straight the employer and bypasses the borrowers bank account.  This payday loan alternative is called My Salary Line.  Biz Journals writes, “Bob Johnson marketing alternative to […]

Clarity is a real-time credit bureau for the alternative finance industry.  Based on my personal experience, they have a lot of passion for the industry.  Now, you can also call them ambitious….. Clear Recent History, is being made available at no-charge for storefront providers who contribute loan data to Clarity. What is Clear Recent History? […]

Get a load of this. A California bank offering a payday alternative bites the dust. It’s unfortunate because I think competition is good.  I wish their model was sustainable. What does not get enough press is that 20-30% of borrowers default on their loans. This is the primary reason payday loans are expensive. Payday lending is just like […]

We still have until May 28th, until we’re out of the woods in Texas.  This is when the  legislative session ends, but things are looking positive for the payday loan industry, in Texas, according to Rep. Mike Villarreal (D- San Antonio) – the House sponsor.  Not sure if this is the white flag or a […]

In a terribly written (and researched) article at CNBC titled “Payday Loans Cost Economy $1 Billion in 2011: Study“, the only good thing are the comments.  There are many: PaulMcGee | May 3, 2013 02:20 PM ET Waaaiiitt a minute. Didn’t the people who collected the interest on the payday loans also participate the economy? Didn’t those loan sharks go […]

Two articles worth mentioning because the payday industry is fighting a PR battle.  Both are from the CFSA.  The first article in the American Banker, “Payday Lenders Lash Out at CFPB“.  Here is what the letter to the director, Richard Cordray, said: “Not only are the data demonstrably incomplete and misleading, but the conclusions, and […]