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  1. #1
    Senior Member Reputation points: 5987 Regium's Avatar
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    CFPB Throws Book at Payday Loan Aggregator

    http://www.pymnts.com/news/security-...an-aggregator/

    In a statement that accompanied the release, Richard Cordray, the CFPB’s director, stated: “T3Leads steered consumers toward bad deals with lenders it didn’t vet and with no regard for how the consumers’ information would be used. This is a reminder to the middlemen who buy and sell consumer loan applications: If you engage in this type of conduct, you risk the consequences for harming people.”

  2. #2
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    was kind of wondering how they got singled out for trouble..reading through the complaint, their use of tribal/offshore lending reminds me of the news from last week regarding that guy from EBF...looks like CFPB is picking these guys apart.

  3. #3
    Administrator Reputation points: 55342 admin's Avatar
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    Exclamation

    Let this serve as a reminder that you may not sell merchant applications or sensitive merchant data on or through this forum.

  4. #4
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    I might also add that if you are one of the numerous shops who fancy backdoor deals and handing off files to your cronies, there will be a price to pay if you don't truly know your client and their position and their needs. The occasional shell game: Broker to ISO to Co-Broker to funder rep to partner funder to contracted "bank". All with the clients info without providing advice and the client not knowing where he is being shopped and the layers of fees.

    An application and bank statements does not constitute knowing your client. And when some foolish merchant stacks himself to death without any advice at all from a "professional broker", it is a powder keg once someone sues given coming regs. Which these activist politicians are going to encourage.

  5. #5
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    @HDF you said it perfectly: An application and bank statements does not constitute knowing your client.

    It didn't take me long in this business to realize that people who only deal in MCAs don't have client's. A client is someone you know on somewhat of a personal level, have spent some time with them, know their business, their needs, etc., and you care. This industry is like a Tinder date where you jump in to bed after knowing someone for 24-48 hours. If you're lucky, they'll come back a few times. I guess in the case of a Tinder date, that's great.

    In the MCA industry you have a customer, not a client. They come once, twice, maybe three times. After that if they are still coming back and you haven't solved their cash flow needs than you haven't helped them at all. You put your "client" in the wrong product time and time again and then get mad when they are broke, owe on 13 positions and desperately seek out a new broker, ISO, Funder, or whoever they end up with. Or you're lucky enough for them to still trust you and then you can play Capt. save-a-merchant and take them to a consolidation company (which are going to become more and more prevalent over the next 6-12 months) for the last 3% in commish you can squeeze out of them.

    People don't realize it but they are doing the same injustice to customers or "clients" that the payday crooks do/did. Tighten up, learn your craft and turn some of your customers into actual clients for the long run. Or just wait for the roof to come crashing down then run away.

  6. #6
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    It is only a matter of time before Fauchahontas and the CFPB come looking for fintech scalps. Thankfully, we have so many scroundrels in the crowd it would take them decades to work their way to a clean living guy like me.

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  8. #8
    Senior Member Reputation points: 23702
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    Quote Originally Posted by Mikhail Suley View Post
    "Under the full-payment test, it would also be more difficult to push borrowers into loans that would almost necessarily have to be rolled into a reborrowing situation. This part of the proposal also caps the number of short-term loans that can be made in quick succession."

    Pretty much how most lenders and ISOs cover the huge acquisition cost, so without, or severely limiting the number of, renewals - some people will be taking a bow and exiting, should this be extended to MCA.

  9. #9
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    Important info..Ill pass it along to my payday pals.
    Marcus Clapman | Business Development | Cresthill Capital
    (High Commissions Payout Group)
    ——————————————————————————
    Tel: 917-521-6528 | Fax: 212.671.1473
    Email: bizdev@cresthillcapital.com
    http://www.cresthillcapital.com

  10. #10
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    Quote Originally Posted by mcaguru View Post
    Important info..Ill pass it along to my payday pals.
    Cool, so when you all get sued together, you can get a bulk discount on attorney costs.

  11. #11
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    CFPB Throws Book at Payday Loan Aggregator

    Jejeje

  12. #12
    Senior Member Reputation points: 2019 Lenders.Marketing's Avatar
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    Quote Originally Posted by admin View Post
    Let this serve as a reminder that you may not sell merchant applications or sensitive merchant data on or through this forum.
    I finally got to the end of the 1334 page proposal. I thought War and Peace was long.
    3110 Main Street
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  13. #13
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    Quote Originally Posted by FUNd View Post
    Cool, so when you all get sued together, you can get a bulk discount on attorney costs.
    What are you talking about?
    Marcus Clapman | Business Development | Cresthill Capital
    (High Commissions Payout Group)
    ——————————————————————————
    Tel: 917-521-6528 | Fax: 212.671.1473
    Email: bizdev@cresthillcapital.com
    http://www.cresthillcapital.com

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