Some advice for starting a payday loan business.


You can find a great amount of information about payday online lending in the internet, but be careful, because this information can be out-of-date and inappropriate. A lot of websites are aimed at the search by keyword, and you will probably visit them while searching for the information. These sites will lead you to the websites that have nothing common with what you are looking for, but intend to earn money of the numerous visitors. You will probably notice that these websites are cheap or the information provided there is rather common. You will understand that their plan is just to sell you something rather than to offer an advanced teaching and to update the data. Anyway, you would better look for another website. You should always keep in mind the addresses of the sites that you consider to be reliable and useful.

These reliable sites will always have the recent legislative acts in the payday lending industry as well as the information about the latest regulation changes of the State. Bad sites won’t provide you with it. I recommend you to visit the page of the Community Financial Service Association of America, which is considered to be the payday lending expert of the legislation and recent developments.

In spite of the fact that you won’t need to pay for the internet services and it can offer you all the latest news and changes in the industry, a lot of people reached a significant success with the help of traditional information sources. Training guidelines will be of a great assistance to you by starting a business. Although you will find more information online, it’s necessary to have several books, in which you are to make notes, particularly during the first year. Using these materials turns out to be much more efficient than applying the most advanced internet sources.

I can’t say for sure that all the traditional sources of information are trustworthy. So you should ascertain that a manual is exactly what you need before purchasing it.

Study the information about collections

If you were not engaged in the collections business before coming to payday lending business, you probably should spend some time and energy to learn something about collections and laws in this sphere. The Fair Credit Act, which is passed by the Federal Trade Commission, sets principle rules for collections practices. Study these rules and follow them in order to stay away from the court. What is also of great importance is not to act too softly with the collections. You can find the tactics how to conduct collections procedures in accordance with the rules of the Act. By using these tactics, e.g. Automated clearing houses, you may not be affected by borrowers defaults.

Learn your State’s legislative acts, concerning bankruptcies

Each State has special laws which concern bankruptcies and explain what losses a payday lender may bear. Find out what is necessary for a payday loan borrower to be considered a bankrupt. You are also to reveal in what aspects Chapter 7 differs from Chapter 11 of the bankruptcies law.