ALTERNATIVE FINANCIAL SERVICE PROVIDERS ASSOCIATION

             ALTERNATIVE FINANCIAL SERVICE PROVIDERS ASSOCIATION

NEWS: July 20, 2015

Industry NEWS is brought to you by AFSPA Endorsed & Certified SUPPLIERS

Zero Parallel

The Consumer Financial Protection Bureau (CFPB) Launches Its First-Ever Monthly Complaint Snapshot to Spotlight Consumer Trends
WASHINGTON, D.C. - Today the Consumer Financial Protection Bureau (CFPB) launched the first in a new series of monthly reports to highlight key trends from consumer complaints submitted to the Bureau. The monthly report includes complaint data on company performance, complaint volume, state and local information, and product trends. Each month, the report will spotlight a particular product and geographic location - this report provides a closer look at debt collection complaints and complaints from consumers in Milwaukee, Wis. The reports will provide insight for the public into the hundreds of thousands of consumer complaints on financial products and services handled by the CFPB.
"Consumer complaints are the CFPB's compass and play a central role in everything we do. They help us identify and prioritize problems for potential action," said CFPB Director Richard Cordray. "These monthly reports will enable us to share that data with the public more regularly, so that everyone can benefit from the information."   Read THE CFPB REPORT

 

South Dakotans need education on short term loans
SIOUX FALLS (KELO AM) - State officials and the Payday Loan industry of South Dakota are at odds concerning capping interest rates at 36-percent. 
A title loan company is asking a circuit court judge to force South Dakota Attorney General Marty Jackley to rewrite ballot language that would impose a cap on interest rates charged by money lenders.
South Dakotans for Responsible Lending must collect 13,871 signatures of registered voters by November 2016 to qualify for the ballot.  Jackley's office approved language last month for the measure that would educate voters on what would happen if it passed.
The complaint argues that Jackley's description of the measure fails to inform voters that the payday lending industry would collapse if the 36 percent limit is adopted by voters. It notes that a 36 percent limit would not be enough to cover the expenses related to issuing loans.
Representative Steve Hickey introduced language in February to put the issue on the ballot.  He recently said that the industry is circulating what is called a decoy petetion.  Hickey said that can sign their lives away for an 18-percent loan but the industry can charge what they want to.
Hickey said the real ballot measure caps the rates at 36-percent.  We have to face it, high interest rates cause a cycle of debt. 

Capital Retail Solutions, Inc.

4 advantages of alternative credit scores
Millions of Americans are deemed to have insufficient credit histories and thus don't have credit scores, but new alternative methods are making it possible to create these rankings, even with limited repayment backgrounds. Nontraditional strategies have emerged in recent years, reflecting the tendencies of millennials and enabling them to be more accurately defined in terms of credit.
This trend has increased opportunities for student loans, startup funding and other previously underserved lending initiatives. Below are just several of the advantages alternative credit scoring can provide.
Urban Institute noted that many Americans cannot generate credit scores because they lack comprehensive repayment histories. However, the source asserted that, through the use of alternative data that compiles supplemental information for individuals such as rent, utility and cellphone bill payments, as many as 40 million of those previously "invisible" people can now be accurately defined. This demographic, historically considered to be "high-risk," can now be more accurately measured. Even if they do not have a broad history of repaying auto, home and student loans, members of this group are now afforded access to a score, which can potentially help them obtain a loan with greater ease.   Read more...SEAN ALBERT

 

Zero Parallel - Payday Loan Lead Generation Company
There are many lead generation companies on the internet. If you have ever been interested in online lead generation, you may have done some research into the term itself.
There are an abundance of opportunities in online lead generation on the internet. There are a number of reasons why lead generation services and lead generation companies have become so popular.
In essence, online lead generation is an internet marketing term that refers "to the generation of prospective consumer interest or inquiry into a business' products or services." This essentially means a lead is the contact information of a consumer. There are usually two types of leads; sales leads (leads based on demographic criteria) and marketing leads (brand-specific leads based on offers).   ZERO PARALLEL 

Dreher Tomkies LLP

Scott Walker Vetoes Proposal to Expand Payday Lending in Wisconsin
Wisconsin Gov. Scott Walker has vetoed a proposal to expand payday lending in the state as part of a package of line items stricken from the budget he signed last week.
"I am vetoing these sections because the expanded scope of business provided for payday lenders is overly broad and significantly exceeds that of any other financial institutions," Walker wrote in a package of vetoes sent back to the state legislature. "In addition, the expanded scope could create regulatory ambiguity and consumer uncertainty."
Walker added the changes of this kind should be addressed in separate legislation "where the implications can be more carefully explored."
The proposal would have allowed payday lenders to operate in any business that could get a license from the state and would have given them authority to offer other kinds of products like insurance policies and tax preparation services. 


Alternative credit scores are proving to be useful to new lenders
July 16, 2015 10:29 by Walt Wojciechowski
Many Americans are ignored by traditional credit rating systems, which only take into account certain factors that do not apply to everyone. For example, FICO's scores focus primarily on big ticket items like mortgage payments, auto loans and credit cards.
But the nation is evolving, and many millennials have chosen not to partake in traditional methods of accruing credit. The generation does not, as a whole, place a large emphasis on home or car ownership and credit card use. This means that some of its constituents may find themselves in very financially stable circumstances, but unable to generate a credit score, and therefore unlikely to successfully apply for a loan from the bank.
The alternative lending market emerged as a major player in the distribution of capital to businesses and consumers alike shortly following the economic collapse. Banks became more stingy and significantly raised the bar for their loan requirements as a way to remain viable in the midst of global financial despair.
Entrepreneurs saw an opportunity to fill the lending void for those without immaculate credit histories, and thus, the alternative lending sector was born. Today, the industry is well-established and competing directly with banks. A major reason for success in this vertical has been the development of alternative credit scores.     Read more...Walt Wojciechowski 

Prepay Nation

How Can You Get More Leads?
There is no simple way of getting more leads. There is no one clear path or answer. There are, however, certain things that are more effective than others. These suggestions may help guide you in the direction of getting more leads, but like everything else, it's all a matter of making attempts and seeing what works for you.
The purpose of marketing isn't the hope that it'll directly increase sales. The goal of a marketing strategy is usually increasing the number of potential leads for a company. The sales are an extension of that and come later. This is why many marketing companies are always looking into various ways in which leads can be acquired.
Where do leads come from? What are the different ways in which you can acquire more leads? These are all very solid questions that you may have asked yourself. There are a number of steps that someone can take if they are interested in getting more leads. They can outline their plans, make extensive notes, do a lot of research, and think about how they want to execute their vision. The main thing you may want to remember is that, like all things in life, it's probably best if you just start doing. The Key is Traffic  

Read more...ZERO PARALLEL


LoanTec is the newest generation of software for small loans and has become the standard small lenders look to for complete and total control over their entire operation, whether 1 office or 500 branch offices. 
Today, even though LoanTec is now used in multiple states, a real live person usually answers when you call for information or support. It's really quite simple. With LoanTec, just expect much better software and a higher level of personal support. It's your ticket to greater success!   LoanTec


Is your company compliant? Find out how much you know...or don't know!  Take the QUIZ 

Sherman & Associates

Alternative Financial Solutions, a MMI Corp subsidiary is a multi-faceted company, originally founded in 1976 in Fort Collins, Colorado, with the purchase of a single pawnshop.
Since that date, Alternative Financial Solutions has become a force in the sub-prime banking industry.
In the late 1990's, Alternative Financial Solutions developed a touch screen automated financial kiosk for the purpose of providing automated cash advances, payroll advances, small consumer loans and other similar applications. The kiosk concept has revolutionized consumer conveniences and is a perfect example of our efforts to accommodate our customer's needs.
Another recent addition is U.S. Recovery Services, LLC, a check guarantee and collection division, aimed at servicing businesses with guaranteed payday lending needs.
The preceding are just a few of the many areas augmenting the Alternative Financial Solutions concept. It is a forward-looking company with the interest and ability to serve and service an ever-cyclical economy.
Our corporate offices remain headquartered in Fort Collins, Colorado.   Alternative Financial Solutions 

 

What is an AML Program?
AML is an abbreviation for "anti-money laundering". All money service businesses (MSBs) must develop and implement effective anti-money laundering programs that are designed to reasonably prevent MSBs from being used to facilitate money laundering and the financing of terrorist activities. You can try to do it yourself, but we recommend that you let us save you time, money and stress by creating a Custom AML Program for your business.   Read more...CapitalComplianceExperts 

Southwestern Investor Group

DM METRICS LLC introduces their Newest Team Member - Scott Soli
Scott Soli has joined the DM Metrics team with a strong background in subprime lending that reaches across the spectrum from payday to finance company to mortgage lending, with experience in branch based and online channels.
Since 2003, Scott served as President and CEO of Solico Financial Corp, an online finance company, which specialized in installment lending. Previously Scott was President of Baywest Mortgage Company, a California based mortgage bank, where he oversaw the entire mortgage operation. Scott also served as Regional Director for Check into Cash, supervising over 85 centers, and 7 districts in 5 states. Scott started his career with General Finance and The Associates.
Scott's deep expertise and more than 30 years of lending experience makes him a real asset to the team as we provide strategic consulting and best practices for subprime lenders.   DM METRICS


Using ACH Payments for Customer Retention
In recent years, ACH payments have registered a considerable growth in volume, and a large part of this evolution occurred due to the increasing popularity of recurring payments. The results released by the National Automated Clearing House Association for the first quarter of 2015 confirm this trend. The network processed 4.82 percent more recurring payments (PPD Debits) compared to the same quarter of the previous year.
This evolution in payments is not unexpected as collecting recurring payments for subscription-based services through the ACH network has some key advantages over other payment methods. While it stands to reason that collecting payments over the phone or via paper checks is not time and cost effective, relying exclusively on credit card payments for recurring payments may be disadvantageous.
Read more...National ACH  

A&S Management

Payment Processing Alliance was formed in response to an overall demand for a knowledgeable, compliant focused payment processor who understands the sophisticated needs of a varied merchant base.  The owner of Payment Processing Alliance has combined banking and industry experience of over 25 years, providing merchants, ISO's and partners with a solid processing solution, one that can be counted on day after day, week after week and year after year.  As a pioneer in payment processing PPA possess all of the qualities a bank, partner or merchant customer seeks in order to have a solution provider that can be counted on.  The entire PPA team is encouraged to be forward thinking, creative solution designers, keeping the company, systems and overall product offering on the leading edge.  There is a keen understanding and appreciation for payment processing and the standard of care which must be taken to satisfy every client and regulatory need.  At PPA we don't just use the word integrity we live it in every action we take.  We understand the risks of our business and operating in an ethical fashion.  Many of our partners look to PPA to assist with managing and mitigating ongoing risks.  

Read more PAYMENT PROCESSING ALLIANCE


FactorTrust Aligns Solutions to Address Ability to Repay for Non-Prime Lenders
ATLANTA (Businesswire) - July 14, 2015
* FactorTrust, leading provider of underbanked data, analytics and risk scoring solutions, has worked with lenders for the past eight years to ensure they can assess a consumer's ability to repay
* FactorTrust solutions help short-term, small dollar lenders comply with anticipated regulatory changes
Anticipated regulation from the Consumer Financial Protection Bureau (CFPB) is expected to require lenders to determine a borrower's ability to repay prior to providing a loan, specifically for short-term, small dollar loans.  For nearly a decade, lenders have relied on FactorTrust's robust data and analytics capabilities to assess a consumers' ability to repay. The company remains a reliable resource and innovator for lenders looking to comply with the anticipated regulation.
FactorTrust's History in the Industry
In the short-term, small dollar lending market, lenders require cost-effective data, analytics and scoring solutions to address ability to repay. FactorTrust works with its customers to provide data and analytics that address these unique underwriting needs, and to proactively provide both innovation and compliant solutions to customers.
"One of the markets that we serve is short-term, small dollar lending and we know that our customers are keenly aware of, and have always addressed ability to repay in their underwriting processes."
In response to the anticipated regulation, FactorTrust continues aligning its suite of solutions to support lenders' ongoing compliance. "Our company philosophy is to continue to evolve our analytical models and data assets that address ability to repay through a combination of cutting edge technologies, predictive data sources and innovative partnerships. Our focus is to keep our solutions simple, proactive, cost-effective, and in step with customer needs that meet the CFPB's requirements," Rable continues.  

Read more...FactorTrust 

Ask a Pro

ALTERNATIVE FINANCIAL SERVICE PROVIDERS ASSOCIATION 

 
ASSOCIATION WEBSITE     SUPPLIER DIRECTORY     ADVERTISE 

 

FOR SALE BY OWNER     ASK a PRO


AFSPA helps our members grow their Alternative Financial Services business by providing them with the best information, research, data, support, relationships and by vetting and presenting the best available product and service providers for the Alternative Financial Services Industry. 

AFSPA Platinum Level

Alternative Financial Service Providers Association
757.737.4088

315 Tuscarora St., Lewiston, NY 14092
[email protected]
www.afspassociation.com