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09-13-2016, 02:49 PM #1
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I think the biggest issue is you are using numbers that are of your own making, and that is probably because most people aren't forthcoming ( even your so called A paper lenders) with the real cost of their money
Secondly, the renewal process of re-fi'ing a balance has been a long established practice.
Im not sure what answer your after, we provide a service just like any other business but it seems to me that some people love to play the "holy than thou" card while getting their hands dirty at the same time.
Don't get me wrong, our model isn't perfect but show me one that is and Im ready to poke holes in it
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09-13-2016, 03:08 PM #2
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You are welcome to pick numbers, and I'll run the same analysis -- More than anything, I am focusing magnitude here, but if you want to cut those annualized rates in half, you will still have a difficult argument to support (especially with double dipping) -- namely, how does the business support it and what are you in your practices doing to avoid creating debt traps? Regardless, I'm quite confident in the validity of your deal profile both from broader market intel and validated by the times we are stacked by YSC. Again, do a deal once and move on, you have a fine product. It's the cycling that is killer
But you are exactly right, no product is close to perfect and in no way am I playing the "holier than thou" card -- what I can do though is defend our business model, and in deals where we are higher priced, explain how our product is specifically designed to NOT create a debt trap -- again, it's no where close to perfect -- we can and will improve it. But there are also inherent issues in the space (i.e. stacking) that, until they are wiped out, will make products "worse" and higher priced throughout the market.
Last point, then we can take this offline if you want but no reason to keep beating a dead horse on a public forum unless you guys will go through the basic math exercise with me -- just because double dipping has been the "normal" practice since the beginning (and you are right, it has), doesn't mean it is a "good" practice. it's one of the most damaging practices in the space, especially on short term high cost capital. If lenders/advance companies don't regulate themselves and remove it from their products, the CFPB or another party will -- it absolutely is a massive (hidden) driver of debt traps -- the CFPB will have a FIELD DAY with double dipping.Carl Fairbank
Founder & CEO boldMODE
www.boldmode.com
Carl@boldmode.com
Founder & former CEO of Breakout Capital (sold to SecurCapital in 2019)
www.breakoutfinance.com
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09-13-2016, 05:01 PM #3
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