Leadpile’s Blog

Going a day or two without hearing something on the news about our unemployment rate or consumers buried in credit, has not really happened lately. So it really was not a surprise for me to see MSNBC.com reporting that, in the month of September, there were almost 125,000 bankruptcy filings. This is one of the highest months ever, since the bankruptcy laws had changed back in 2005. We are all waiting to see if the housing market is really starting to become more stable, and this then could help us to see this bankruptcy filing statistic go down, not up. It’s like a domino effect, once the housing market truly becomes stable, more people will hopefully be keeping their jobs because our nation’s consumers will begin to feel okay to spend money to keep our businesses open.
Leadpile will continue to monitor the legal industry, and will continue to try and connect some of these consumers needing legal help. Sometimes it is not a matter of filing bankruptcy, but just a case where someone needs to be connected with someone that can give them some much needed advice. Leadpile is generating bankruptcy leads, and will continue to do this as long as there is a need for these consumers to get help online.

With today’s struggling economy, many consumers are facing the reality of being forced to look for new employment.  The unfortunate thing is that many consumers were in the same job for many years, and possibly feeling a little overwhelmed with how technologically advanced jobs are requiring people to now be. In an effort to help consumers learn all aspects of the Microsoft Office products, and other technical skills to be successful in today’s workforce, Microsoft has launched their Elevate America website.

This website is a great idea and something that I truly believe can be a great tool for anyone looking for a new job, or someone currently working and wanting to learn more.  There are various certification courses, Microsoft Office tutorials, E-learning courses and information about classes available in their area.

According to the website, these are the things they are looking to accomplish:

*  Expanded access to basic technological literacy and skills training.

*  Intermediate technology skills training courses, instructor-led and online, plus selected certification exams.

* Access to a new web portal that will help guide individuals to training that positions them for success in the economy today, and tomorrow.

Leadpile Lead Exchange believes that knowing all this information is very important in any career.  Having a company like Microsoft offer these services is a sign that everyone is trying to contribute their part in helping our nation get back on their feet. Knowledge is power!

Remember those days when you could pick out all the items you want, and then pay for them each week at your local store?  Okay, maybe not everyone did that, but I remember doing this sort of thing when wanting to buy some “big” ticket items.  Those days seem to be back.  Sears announced it is rolling out layaway!  You shop for what you want and then make a small down payment, then you are done.  Layaway is not a common thing these days, however with the economy retailers are doing whatever it is they can do to get consumers in their stores for the holidays

What happened to layaway and why did it pretty much disappear?  According to creditcards.com, the rise in credit cards being issued erased the high demand for layaway.  Now with consumers having maxed out credit cards, delinquent mortgages, and jobs disappearing, retailers are trying to come up with ideas on how to get that limited amount of consumers in THEIR stores.  Other stores that I found offer layaway are:  Burlington Coat Factory, TJ Maxx, and also take a look at elayaway.com, because this website offers a layaway service.
So, why would Leadpile Lead Exchange be writing about “layaway”? As I have stated in previous posts, we see consumers that are in all sorts of financial situations. Seeing stories such as retailers rolling out an old idea in this tough economy, gives me optimism that there is possibly some light at the end of the tunnel. Every little piece will help those consumers and the economy get headed in the right direction!

According to paydayfacts.org, The Ohio Grocers Association has backed Ohioans For Financial Freedom. The group is stating that consumers are going through a lot of economic hardships, and taking away additional sources of financial help is not the way to go. The other aspect they are concerned about is the fact that if this legislation takes effect, 6,000 employees in the payday lending industry could loose their jobs, resulting in their bills and loans becoming delinquent ultimately affecting other financial industries. This group believes that consumers should be able to make their own decisions about borrowing money, and the government should not be making that decision.

Either way, the payday loan lead type is a very demanded lead type with Leadpile Lead Exchange.
We shall see if Ohio falls in the footsteps of some other states developing legislation in this industry.

In recent years, more and more people are going to college and taking out student loans. These loans were once looked at as “good debt”, however there are students that are graduating with $100,000+ in debt. This is equating to $500-$1,000/month in payments for students. Good debt? ALOT of debt!
The excitement of graduating from college is overshadowed by the idea that within 6 months of graduating, you will begin paying back these debts. How can you really get excited about the fact that you have spent the last 4-6 years going to school, and to be finally done?
According to Yahoo, there are students graduating and becoming affected by the high level of stress, because they know that they are going to have to pay this money back. The first stress should be finding that job that they have been going to school for, however with the outstanding debt, it is hard to really focus on getting that “right” job.
This is a very common type of situation that is happening around the country. This makes me wonder if maybe student loan debt should be somehow waived by the government, or some other options being available? Taking on student loan debt is not the same as going out to the department store and charging up credit card debt. Something to think about… any other way to potentially handle student loan debt? We want young adults to WANT to go to college.
On a final note, student loans/student loan consolidation lead type is minimal in our Leadpile Lead exchange. However, I do know there are a lot of students that are out there wanting to consolidate their student loan debt, because of the exact reason of the payments being out of control.

Who is still picking up the Sunday Paper?  It has some fascinating stuff like clip off coupons, find an automobile, or look for a job.  Sunday mornings, while I go for breakfast, I see the older generation reading the newspaper. Not so much the younger ones, they choose to have their laptops next to them or their iPhones. 

I was reading an article today on www.investopedia.com regarding the yard-sales.  They were explaining how to set up a yard-sale and make some cash. I’m familiar with the advertisements inside a lead exchange, but this was somewhat out of the box thinking.  The article is called “In A Cash Crush? Hold A Yard Sale” by Lisa Smith.  Lisa is explaining how to advertise and how to have a successful Yard Sale by making it unique using Craigslist, or putting colorful bulletins or advertising in the newspaper.  

It all comes down to: targeting the audience.  The older generation are not computer savvy, and they are not sitting on their computers as long as the younger generation, so they are better of reading the paper. Than you have some other people that are traveling a lot, they are more targeted by the bulletins. The ones hanging out in the Starbucks, with their computers, or with their web enabled phones, are going to see your ads on the web. The internet is the highest growing method of advertising, and it’s also the most targeted one. Not only that you are able to target exactly the demographics you are looking for, but you are able to track the efficiency of your campaign as never been possible before. You care see where the consumer came from, what ad they clicked on, how long they’ve been reading your page and even how long it took them to finish an online application. 

After reading this article, I came to think about advertising to the leads that did not sell in our marketplace. These are mostly aged leads that were left behind because the advertisers met their caps.  They might not be of any interest to the current buyers buying real time leads, but they are a treasure to the companies interested in cherry picking their leads.  LeadPile Lead exchange has an increasing network of publishers and active verticals that is doing business in.  As the Largest Online Lead Marketplace, LeadPile Lead exchange has a good number of valuable leads that can work out for the advertisers that have small budgets, or they want to complement their current inventory of leads. 

Testing out different venues of advertising or using aged leads and filtering them by the consumer initial interest, can bring some value to your current business. 

Leadpile is working closely with the buyers to increase their ROI, and we are committed to your, the Advertiser, success.

The Following is a from Bankrate.com by Laura Bruce, September 12^th, 2005. I thought this would be an interesting post for People following Online Payday at the Lead Exchaneg Blog.

It’s a tempting alternative to walking into the check-cashing store on the corner. Online payday lenders are popping up on the Internet, offering fast, short-term loans to cash-strapped consumers, in the anonymous comfort of cyberspace.

But if you borrow from these businesses, you might have more to worry about than the astronomical interest rates traditionally associated with payday lenders in general.

For starters, you’ll provide an amazing amount of personal data — Social Security number, driver’s license number, mother’s maiden name and, of course, your name, address and employment information — to the Web site.

You’ll also give your checking account number and bank routing number, so the lender will have access to your account. The lender will deposit your loan into your checking account and dip into your account to extract interest, fees and the principal. Some require that you fax them your latest pay stub, most recent bank statement, photo ID and a voided check.

But to whom are you giving this information? More than likely you won’t have a clue. Many Web sites that pop up when you do a search for something such as “payday loans” aren’t lenders at all. Take Advance Cash Loans, which states at the bottom of its home page, “Advance Cash Loans is not an online provider of online payday cash advances. We simply connect people seeking fast cash advances with online providers of instant cash advances so they can get the advance cash that they need, as soon as possible.”

A Consumer Federation of America (CFA) survey, of 100 online payday lenders and referrals sites, found that many are run from outside the United States and, perhaps, out of reach of American laws.

“You don’t know where your information is going,” says Jean Ann Fox, director of consumer protection at CFA.

“Many times you can’t find who the domain is registered to. There are Internet payday lenders outside the country, in Canada and on islands in the Caribbean that you can’t find with a magnifying glass. It’s like handing a stranger a blank check.”

Bankrate.com tried to contact three payday lenders. Only one could be contacted, and no one there would answer questions or return calls.

Are these businesses fly-by-night scammers that will steal your identity, trap you into budget-busting, long-term borrowing habits, or illegally siphon money out of your bank account? Nope, not necessarily. But you should think long and hard before sending your information to companies that are so stingy about their own information, Fox says.

“If you borrow from them, you’re not seen in line at the corner payday lender, so there’s privacy and that might be a selling point. But I hope it’s offset by sending all that personal information over the Internet. It’s a financial strip search. They want every piece of your financial information. People should be afraid to provide that information. I wouldn’t want to give that to someone over the counter, much less over the Internet.”

Traditional payday lenders — the so-called brick-and-mortar shops — are represented by Community Financial Services of America, a trade association. Online payday lenders have no such organization and, therefore, have no one to represent them. But Andy Jacob, CEO of Leadpile.com, a company that seeks leads for salespeople in the cash-advance business and other industries, calls the growth in online payday lending “explosive.”

“What’s happening in online is happening fast and furious. The major players are trying to position themselves to be the leader online. It’s a bifurcated space right now. There are many players that are lead generators that aren’t in the payday loan space and they’re attempting to secure the lead to themselves. Many payday-loan companies are late to the game. It’s challenging to figure out which company is doing what right now.”

The growth of online payday lending is presenting problems for state law enforcement officials and consumer advocates. Earlier this year, the Massachusetts Office of Consumer Affairs and Business Regulation ordered 91 companies marketing Internet payday loans to stop. The companies were reportedly charging annual percentage rates averaging 300 percent and fees averaging $30. The state says none of the companies were licensed to offer loans to residents.

Some of the letters we sent to these companies were returned when the post office was unable to find the address,” says David Cotney, senior deputy commissioner at the Massachusetts Division of Banks. “That reinforces our concern about consumers handing over personal information. That’s one of the reasons licensing is required; it gives the consumer some recourse.”

James Brusselback, enforcement chief at Washington State Department of Financial Institutions, says his division is investigating some 10 online payday lenders.

“The difficulty with the online outfits is in locating them, and then some of them claim that our state law doesn’t apply to them, so we have that issue of trying to bring them under our state law. I guess part of their argument is that they’re not located in the state and that their home-state law is sufficient to protect their customers. The requirements in those states — Nevada and Utah — are far less than what we require.”

Karolyn Klohe, financial legal examiner in Brusselback’s department, says consumers can have a tough time stopping online payday lenders from taking money out of their accounts.

“A common complaint against online payday lenders is that the customer is required to give banking information, whereas if they walk into a payday lender store they give them a postdated check. But what’s happening online is the payday lender uses the bank information to make unauthorized withdrawals from the consumer’s account. They say they’re collecting funds owed to them. They can make these withdrawals in a way they can’t with a postdated check.”

Turning to a payday lender — online or on the corner — is almost universally discouraged by consumer advocates. But the alternatives can seem thin to someone who needs cash to see them through to the next paycheck. Many banks offer bounced-check protection plans that consumer advocates often equate with payday lending. A notable difference, perhaps, is that the consumer is less likely to be able to overdraw several times and end up owing money they probably can’t repay.

“The long-term solutions include getting a good spending plan and building a nest egg of savings,” says Fox. If you can afford to pay $45 every payday to keep a $300 loan from bouncing, then you can afford to save it so you don’t need to borrow in the future.

“Pawn shops are cheaper than payday loans. On rare occasions you can ask your employer for an advance. Negotiate directly with whomever you owe. Get a second job. Put off purchases until you can pay. None of these are comfortable. It’s appealing to write the check without having money in your checking account and walk out with cash, but it comes at a high price.”

In their survey of Internet payday loan sites, CFA found that loans of $200 to $2,500 were available, but $500 was the most-frequently offered. Finance charges ranged from $10 per $100 up to $30 per $100 borrowed. The most common rate of $25 per $100 translates into an annual percentage rate of approximately 650 percent if the loan is repaid in two weeks.

Many states have passed laws regulating payday and small loan laws. Consumer Federation of America has compiled important information that consumers should be familiar with before borrowing.

Who could ever imagine Starbucks famous for those fabulous Lattes and Frappuccinos we all love, White Mocha being my personal favorite,  would be closing down 600 stores by 2009 according to NY Times.  Initially, Starbucks plans were to only close 100 stores but with the housing crises that affected California and Florida the hardest, which is a large region that Starbucks covered, Starbucks has definitely been struck as well.

Starbucks is now closing 70% of their newest stores that have been open less than 3 years.  As of Sept 30th, 2007 they had 6,973 stores worldwide.  That’s leaving 12,000 people unemployed, doing the math its  7% of their global workforce.  Sad to see so many cheerful employees go. 

So not only is gas pricing going up, housing going down, cost of food increasing but now Starbuck is shutting down doors.  Well, with a cup of coffee averaging $4-$5 society simply cannot afford it. 

So your asking how is this related to the Lead Industry? 

• JOBS – More Home Based Business Opportunity Seekers
• DEBT – Credit card debt will rise as some will continuously charge their credit card to get by.
• MORTGAGE- More consumers taking equity and refinancing to pay bills.
• PAYDAY LOANS – Loosing your job is not easy, the average person lives paycheck by paycheck more payday loan request will be demanded. 
• INSURANCE – More demand for health insurance and life insurance coverage.
• BANKRUPTCY-More consumers filing bankruptcy buried in debt.   

Consumers will be in big need of your help!  Starbucks is just an example of how the economic struggle is affecting not just individuals but companies as well.  A lead exchange will help companies offer services to consumers in need.  More demand in the financial space that’s for sure.  

6000 jobs will be lost in Ohio

As I wrote about yesterday if the new Ohio Payday law goes into effect September 1^st, over 6,000 people will be put out of work in Ohio. The Community Financial Services Association of America announced last week a referendum to overturn Strickland’s bill.
To do so, the committee must collect 241,365 valid signatures before Sept. 1 to qualify for the November’s ballot.

That’s a lot of signatures! The Payday industry and the Ohio Legislators made a bad move here. They should have compromised early on. Instead, much needed responsible payday relief looks like it is going bye for people in Ohio, and over 6000 more people will need to be absorbed in the work force.

The U.S. lost jobs for a fifth month and the unemployment rate rose by the most in more than two decades, as an influx of students into the workforce drove the biggest jump in teenage joblessness since at least 1948. Payrolls fell by 49,000 in May, the Labor Department said today in Washington. The jobless rate increased by half a point to 5.5 percent, higher than every forecast in a Bloomberg News survey.

What does this mean to some online Companies? For Companies specializing in assisting consumers with Payday loans, Debt Consolidation Programs, BK Services, and services for the under banked may flourish as more and more people need more help.