Leadpile’s Blog

Arizona may have good news for the Payday loan industry this week as an amendment will be heard on Tuesday at 1:30pm. Adjustments suggested would restrict the number of loans a person could take out at one time, allowing fees of $15 per $100 borrowed, and also allowing the consumer to cancel the transaction if the borrowed money is returned within two business days. The amendment would require businesses to give at least 1.5 % of the fees it collects to “organizations that provide services to low-income and moderate income individuals” in their community.

Leadpile works a lot in the payday loan industry, with regards to trying to connect those that are looking for a payday loan and those that can provide these short term loans to the consumers. However, if you are in the military you do not qualify for these types of loans, therefore there are alternatives that are offered to these consumers. Leadpile is excited to partner up with a lender that can help service these individuals. We are looking for publishers that can help us generate more of these leads.
This is what we are looking for in these leads:
Nationwide, “active duty” Military (no reserves or government employees) only, consumers must be looking for a $500+ loan, no daily caps and there is no restricted delivery schedules.

There are several ways to generate these leads:

* MicroClick Forms
* MicroClick iForms
* Banners
* Text Links
* “On Exit” Ads
* Open Market

If you are a publisher and looking to help provide these sorts of short term loans to members of our military, reach out to us!

A new bill has passed in Virginia setting new guidelines for car title loans. This bill will enforce caps on interest rates and loan terms which is something that has not been done before. Similar to a law in Tennessee the loans are restricted to a year in length, restrict the loan amount to half of the car’s value in addition to preventing new interest being added onto the loan once the car has been repossessed. A tiered interest rate cap will be put into effect, running from 22 percent per month for a loan smaller than $700, to a maximum 15 percent for loans higher than $1,400.
Car title loans are a topic of controversy lately in a similar way to payday loans. The loans both help consumers who are in need and would not have other options, but can be at times tricky for consumers to understand if they are not taking the time to read the terms. The consumer needs to always be aware of the terms of the loan and the interest rate they will be paying. If applying for a loan, being as educated as possible can help the consumer know all options available and prepare/make a plan to use the loan responsibly.

June 30th is the date that the Payday loan industry in Arizona will have to fight to survive past. The industry has many advocacy groups and local businesses supporting a bill that would allow the short-term loan companies to continue operating. Supporters of the bill believe that this economy has shown short-term smaller loans are necessary and not easily available from banks or credit unions; the lower dollar amount loans are helping a lower income or “fallen on hard times” part of the population.

In recent weeks, there have been talks on the largest debate surrounding the Payday industry, the interest rates. The interest rates are currently under a temporary exemption from the 36 percent, charging $17.65 per $100 borrowed for a 2 week loan; this exemption would expire on June 30th. The Payday loan lenders would possibly not generate enough revenue to cover overhead costs if capped at 36%, however this is the number that Representatives from the minority House Democrats would like to hold them to…

As these discussions continue and the debate grows, LeadPile will continue to keep you updated!

In Wisconsin, the state Senate is being asked by the Assembly Speaker to avoid delay with moving forward with the legislation regulating payday loan companies. It has already been approved recently by the Assembly to limit the size of loans, restrict consumers from taking out more than one loan at a time, bans auto title loans completely as well as “rolling over” the balance of a previous loan.
A Senate version of this bill includes a cap on interest rates, however the Assembly rejected this bill as they believe their version does enough.
There are currently over 500 payday lenders in the state of Wisconsin.

LeadPile will continue to keep you posted on changes…

House prices have not been on the rise for six straight months in a row. Fourteen out of twenty metro areas saw an increase in homes from the month before. As of November, 2009 was up 3.4 percent from its lowest back in May, 2009. Phoenix (Arizona) and San Francisco (California) have had the highest month over month increase in their housing markets. Both New York and Chicago had the largest declines in the nation. One of the largest reasons for the increase was the first time home buyer tax credit. With the original end date for the tax credit being in November of 2009, there was a rush to purchase a new home (the tax credit ended up being extended to the spring of 2010). The tax credit was a huge incentive to purchase a home, and with the home prices in Arizona being so low, it makes sense that Arizona saw one of the highest increases in their housing markets.
One of the big questions is if the trend is going to continue to increase? Some economists believe that there is going to be another dip in the housing market because of the the high rate of unemployment and foreclosures. It is expected that we will see these results in the beginning of this year. It goes without saying that now is the time to buy. Depending on the area, people are seeing move in ready houses for as low as $50,000. That is less than a college education!
If you find that you are one of the many who are having trouble keeping your home you may want to consider a loan modification or debt consolidation. Leadpile is trying to do it’s part by matching up the consumers with lenders on a daily basis! Heck, we want the economy to be better too!

It seems that Iowa might be trying to follow some of those other states that have imposed payday lending laws. The Des Moines Register is reporting that a few Iowa lawmakers are attempting to get a law passed that would limit the number of payday loans a consumer could take out in this state. Many are saying it is a “cycle of debt”, but many are going to keep an eye on this new potential legislation that is trying to get passed. Leadpile will certainly keep an eye on what is going to happen in Iowa. Stay tuned!

As of January 1st 2010, a new payday lending law was imposed in Washington. “The new law limits the size of a payday loan to 30 percent of a person’s monthly income, or $700, whichever is less. It also bars people from having multiple loans from different lenders, limits the number of loans a person can take out to eight per 12 months, and sets up a database to track the number of loans taken out by people.” This will be something that lenders will now have to pay attention to.
Leadpile will be watching the status of Washington and payday loans, because we work with publishers nationwide, and we will be interested in any legal changes that happen in this particular state.

It seems new payday lending laws will be taking effect in January in the state of Washington. The new laws will limit the maximum loan amount to $700, or 30% of the consumer’s monthly gross income, whichever is less. There is going to also be a limit on the number of loans a consumer can take out to 8 loans in a 12 month period of time. One other stipulation implemented in this new law is that anyone who is in default on another loan, or still paying back a loan, can not take out a new payday loan starting in January.
My question is…. will these new regulations limit the number of leads that payday lenders purchase in this state, or will they still be interested in extending loans to consumers in the state of Washington? My guess is they will still very much be interested in obtaining payday loan leads from Leadpile and other lead providers in the state of Washington. Consumers need these short term loans and payday lenders should still be the ones providing them to the consumers.

The FDIC has released a report showing 30+ million people have little or no access to banking services. Unfortunately, this study is also highlighting the fact that many of these consumers are poor, immigrants or minorities. According to NPR news, “In all, 25.6 percent of U.S. households either lack bank accounts or use payday loans, check-cashing services and other costly alternatives to traditional banks, according to the survey.
The report is part of an FDIC effort to bring the so-called “unbanked” into the financial mainstream.
FDIC Chairman Sheila Bair said access to a bank account gives households “an important first step toward achieving financial security.” Vulnerable families need the ability to save for emergencies and borrow on affordable terms, she said in a statement.”
The one thing that really needs to be pointed out about this report is the fact that it talks about many people who do not have banking services, yet they are using services such as payday loans. In reality, a consumer generally can not get a payday loan if they do not have a checking account. There might be some lenders that allows no bank account, however most do require it. So, I am not sure payday loans should be in this article when speaking about the “unbanked” consumers??????

In recent news in AZ, payday lenders are working with an former AZ attorney general – Grant Woods to try and keep payday loans from being eliminated fully in the state. In a recent vote the short terms loans had been voted to be eliminated, however some are trying to prevent this from happening. A local AZ paper is quoting that some payday lenders have hired a local company whose owners are advisors to the AZ governor, so this looks like they are really trying to win this battle this time. We all wish the people in AZ (Leadpile’s home) luck with winning this battle.

We all know that there are great deals to be had in automotive market right now. Many car dealers are willing to cut their prices and haggle much more than in the past. So buying a new car as a steal should be simple, right? Car dealers may be willing to work with you on price, but when it comes to giving you a loan, not so much.
Unless you are very money savvy or have a great job, buying a car with cash is not always possible. This day in age it is very common for the majority of people to take out a car loan and finance their car. With the market how it is, getting a car loan can be easier said than done. Its not that lenders do not want to give out loans, they are just being much more picky on who they will approve. Also, interest rates are very high at the moment and your credit can make a difference on if you are approved and what interest rate you receive. According to U.S.News, when trying to finance or get a loan for your new car there are a few key facts you should know.
1. Basics of Car Loans – know that you will have to pay an interest rate which includes principal and interest.
2. Car Loan Term – This is the amount of time that you have agreed on to pay the lender back. The car is not yours until you pay back the WHOLE loan and interest.
3. Credit Score – As stated above, interest rate is normally based on an individuals credit score. Usually, the lower the credit score the higher the interest rate.
4. Apply Several Times – Consumers normally apply to several different companies to get their loans. This will give you a better chance to get a loan that suits your exact needs.
At the end of the day it is by no means impossible to get a auto finance loans. LeadPile is also here to help. We match up consumers and lenders who meet each others needs. Hopefully, this helped you realize that with the right knowledge and steps, buying a new car with great financing is not as far out of reach as you may think.