ALTERNATIVE FINANCIAL SERVICE PROVIDERS ASSOCIATION
ALTERNATIVE FINANCIAL SERVICE PROVIDERS ASSOCIATION

NEWS: May 17, 2016

NEWS is brought to you by AFSPA Endorsed SUPPLIERS

Google's Payday Loan Ad Ban Smells Like Government Intimidation
Google loved payday lending and products like it, until something happened.

Google Ventures is one of the most notable investors in LendUp, a personal lender that charges up to 333% APR over the period of 14 days. The famous creator of Gmail, Paul Buchheit, is also listed as one of LendUp's investors. Four months ago, Google Ventures even went so far as to double down on their love for the concept by participating in LendUp's $150 Million Series B round.

This week, Google Inc. has apparently found Jesus after "reviewing their policies" and determined that personal loans over 36% APR or under 60 days will be forever BANNED from advertising on their systems. "This change is designed to protect our users from deceptive or harmful financial products," they wrote in a public message. Ironically of course, Google is tacitly admitting that it must protect users from its own products that it has invested tens of millions of dollars in because they are deceptive or harmful.

LendUp is not the only company that Google Ventures has invested in that charges more than 36% APR. A business lender they previously invested in charged up to 99% APR. That investment was for $17 million as part of a Series D round. At the time, they called the management team's vision "game changing."

The only thing game-changing now is their about-face after their supposed policy and research review. It's hard to imagine that in 2016, Google is just finally reading research about payday lending, especially considering that payday loan spam has for so long been a part of their organic search results. It cannot be understated that they've even created entire algorithms over the years dedicated to payday search queries and results. And "loans" as a general category is their 2nd most profitable. Yes, surely they know about payday. Read the entire story at deBanked
Capital Compliance
Amscot Financial Contributes Mini-Grants to 13 Non-Profit Service Groups
Amscot Financial, a leading provider of convenient, consumer-oriented financial services, recently awarded mini-grants of $100 to $500 in support of 13 different non-profit service organizations located in the Florida communities where the company serves several million consumers.

"Helping others is important to all of us at Amscot, that's why we continue to partner with those organizations who work hard to make a difference in the lives of those who need it most," said Ian MacKechnie, Founder and CEO of Amscot Financial.
Mini-grants went to the following organizations: See the story at REUTERS 
FactorTrust
MEDIA CONTACT:
Savannah Weeks
Trevelino/Keller Communications Group
404-214-0722 Ext.110
 
FACTORTRUST OFFERS ADVANCED LENDPROTECT ATR SOLUTION TO BETTER ASSESS ABILITY TO REPAY
In Anticipation of CFPB Proposals, FactorTrust Releases New Solution to Help Short-term, Small-dollar Credit Market
 
ATLANTA (May 17, 2016) - FactorTrust, the alternative credit bureau, announces the launch of its LendProtect ATR (Ability to Repay), a comprehensive, innovative solution for informed lenders that will accelerate assessment of consumers' ability to repay in preparation of anticipated regulation from the Consumer Financial Protection Bureau (CFPB).
 
The CFPB's proposals under consideration are expected to require the short-term, small-dollar credit market to take new steps to ensure consumers can repay short-term loans, vehicle title loans, deposit advance products, certain installment loans and open-end loans. For each loan, lenders will need to take into account the consumer's income, major financial obligations and borrowing history, while considering a 60-day "cooling off period" between loans.
 
As reported in FactorTrust's latest Underbanked Index, 31 percent of applicants would be eligible to borrow after considering the proposed "cooling off" period and residual income requirements. However, applicant eligibility could reach as high as 40 percent, if lenders use alternative credit data to optimize underwriting decisions and dynamically adjust loan amounts, accommodating limited residual income.
 
Benefits for Short-Term Lenders
LendProtect ATR allows lenders to meet new compliance requirements while improving underwriting and account management practices. Utilizing FactorTrust's proprietary data and analytics, LendProtect ATR quickly calculates residual income based on the requested loan amount and streamlines the integration of essential data sets. This means that lenders can validate income and living expenses, verify major financial obligations and identify other covered loans and borrowing behavior of consumers which may put them in the "cooling off" period. FactorTrust's LendProtect ATR dashboard also gives lenders access to real-time transaction processing and decision support, application validation and residual income calculation.
 
"We always have been committed to providing lenders with innovative alternative credit data solutions and we have a keen understanding of what it takes for short-term lenders to succeed in today's market. We take pride in providing our customers with real-world solutions, such as LendProtect ATR, that allow them to align with changing regulatory requirements and lend responsibly to deserving consumers," states Greg Rable, FactorTrust CEO.

Lenders have trusted FactorTrust's robust data and analytics capabilities to assess a consumers' ability to repay for a decade, but LendProtect ATR was designed to help lenders demonstrate compliance with a verifiable view of consumers' true ability to repay, in relation to CFPB proposals for consideration.

For guidance on how to leverage this solution, lenders should contact FactorTrust at 1-844-205-4111 (press 4) or [email protected] or visit www.FactorTrust.com.

Opportunity Tax
Overdraft Fees Can Cause Financially Vulnerable to Leave Banks
While occasional overdraft fees may be just an annoyance for some, they can cause the most financially vulnerable Americans to flat out leave the banking system, according to a new study by The Pew Charitable Trusts.
The 2014 survey described the circumstances of 302 "heavy overdrafters," or those consumers who incur more than $100 in overdraft and insufficient funds fees per year, out of 8,461 people Pew interviewed by phone. With the typical overdraft fee at around $35, that's roughly three times a year.
"The heavy overdrafters we surveyed are very financially vulnerable," Susan Weinstock, The Pew Charitable Trusts' director, consumer banking project, told ABC News.
Nearly 70 percent of the "heavy overdrafters" earned less than the median annual income in the U.S., which is roughly $50,000. Meanwhile, a previous Pew study of 42 banks reported more than $2.4 billion in overdraft fee revenue for just the first half of 2015. Read the article at ABC NEWS
From the CFPB:"Once the Bureau issues its proposed regulations, the public will be invited to submit written comments which will be carefully considered before final regulations are issued."

When the CFPB releases it's 'proposed regulations' it will be followed by a 'COMMENT' period during which anyone, who believes the 'regulations' would be detrimental to their business and their future, can 'Comment' directly to the CFPB.

We'll keep you posted on how to present your 'Comments', after the CFPB proposed rules are released, and if they are deemed to be detrimental to the industry, your business and your future.

Watch for our surveys so we can find out who's ready to get involved!

Keep your Contact Info current because we'll be reaching out to YOU!
AFSPA
CFSA
Google Blows Up Payday Loan Industry. Lending Club Impact by Jer Ayles-Ayler

* Brick-n-mortar operators move up the food chain and are in "the catbird seat." Location, signage, branding, offline marketing, mobile phone friendly websites, blogging... is more important than ever.

* Google = total hypocracy! Google Ventures provided millions to Sasha Orloff at 
Lendup - a payday lender - back in 2013!

* A tremendous opportunity for those of us with the creativity build-out alternative marketing channels enabling small dollar loan consumers to solve their temporary financial challenges and to tell Google and Facebook to F%%$$ off. MassRoots is doing it for cannabis. Gun sales continue to thrive via new strategies as well.

This new Google initiative doesn't mean payday loan ads will no longer appear. It simply means the 1st 4 ads at the top of Google search results will not contain sponsored ads.

Anyone with a brain knows the single-payment PDL product has been phasing out. The new mantra is "personal loan," installment loan," "line-of-credit..." These holier than thous will never succeeed in shutting down financial services products that millions of consumers want and need!

One more time: DISRUPTION = OPPORTUNITY. Seize the day! Lending money to consumers and small businesses will not go away!   Read more from Jer Ayles-Ayler
Insight
Check Into Cash Sponsors Bradley County's Relay For Life
Bradley County's Relay For Life event will kick off at 9 a.m. in downtown Cleveland. As a gold Relay For Life sponsor, Check Into Cash will contribute a booth with a prize wheel, a team for the walk, and a visit from Bob Cash during Saturday's festivities.

"Relay For Life and the American Cancer Society are very important to Check Into Cash," said Check Into Cash President Steve Scoggins. "We love to try and get involved by donating and participating whenever possible, and we hope our efforts make a great impact in 2016."

"Bradley County's Relay For Life is going to be a fun and exciting day," said Scoggins. "We encourage everyone to come on out, support a great cause, and maybe even win some prizes!" Read the story at BROADWAY WORLD
DM Metrics
Google's ban on payday loan ads will cost the company millions. 
Paid search research firm, AdGooroo, estimates Google will lose $34.5 million in US ad revenue on desktop alone.
FactorTrust
Google Is Banning Payday Lending Ads. That Sucks.
The ad giant's new policy is good-hearted but desperately wrong-headed.
"But Google has erred in making an exception to their general policies by banning ads because they think the services offered are yucky-which is what this policy comes down to.

For the most part, Google isn't in the business of stopping retailers from advertising stuff that's broadly legal but not a very good idea for some individuals to buy-bulk orders of Mountain Dew and silver baby spoons from Tiffany's remain fully legit in Google's eyes. (Google did block 780 million ads last year, and their policies are understandably lengthy and complex.) But credit card ads abound, not to mention ads for student loans. So why suddenly target payday lending?

In general, entities that provide goods and services to poor people are easy for rich people to look down on or to condemn as exploitative. You can see this everywhere, from restrictions on large cheap sodas to bans on restaurants selling convenient, caloric fast food in low-income neighborhoods to cops who choke people to death for selling single cigarettes to customers who can't afford a whole pack. Is it a good idea to smoke a loosie after finishing your Whopper and Big Gulp? Nah, probably not. But it's no worse than pulling a Nat Sherman from a fresh pack after you finish your Ruth's Chris ribeye and chocolate souffle, yet nobody's holding hearings or issuing press releases about that." Read the entire article at REASON.COM
For OHIO Title Lenders
TLPP
Is this the real reason Google shutdown payday loan ads? by Neil Stevens
Sometimes when we look at the shadowy dealings of big companies, there's a complicated line of dots to follow, going from point A, to B, to C, where we try to follow the ball under the shells, and see where the money actually is.

In the case of Google banning payday loans from their ad networks, it doesn't seem nearly so complicated as that.

If you haven't heard, Google is banning payday loan firms from advertising on their ad network (the biggest in the world). Now, superficially it sounds like they're trying to be good guys (though paternalistic, much like the Obama administration in fighting payday loans). But it turns out there's a much simpler reason they'd want to do this: competition.

You see, in 2013, Google dropped millions in LendingClub, a "peer to peer lending" online service that offers small personal loans, among the options available.

Interest rates vary for LendingClub personal loans, but they go as high as 34%. That doesn't sound as high as payday loans, which have annualized rates much higher, but the LendingClub loans collect that interest over a much longer period.

Don't be evil, eh?   Read the story at REDSTATE
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Alternative Financial Service Providers Association
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