THE BLOG

27
Nov

Car Title Loan Business Profits Explained-Google Searches for Car Title Loans Increases 33%.

Are you in “the business of lending money to the masses?”

Do you still think of yourself simply as a payday loan lender? A check casher? A bail bondsman? A personal or installment loan provider?

If you do, you are WRONG! You’re a “Financial Service Center.” You sell money! You sell money in the form of loans. Car title loans. Payday loans. Personal loans. Installment loans.

Does you business offer car title loans? No? Big mistake! Plenty of money to be made with a lot less risk!

Google says “car title loan” searches are up 33%. Here’s the proof:

how to start a car title loan business

Per Google: Car Title Loan Searches Increase 33%

What’s this mean to you? Millions of consumers in the USA want to borrow money by putting  the title to their car up as collateral! Why is that a big deal? Because, if you’re a lender, your loan is collateralized by the car. This is not your mommy’s typical high risk payday loan.If a car title loan is not paid back, the lender takes the collateral- the car!

How’s a car title loan work?

Use one of the many tools revealed in our Manual: “How to Lend Money to the Masses” to determine the “low book value” of the car in your geographic area. Agree to loan up to 50% of this “low book” value to your car title loan customer. Our Course walks you through how to legally become the title holder on your borrower’s car. Then, depending on the state you operate in, you charge fees and interest to this borrower.

EXAMPLE: We operate in Calif. The law allows us to charge any amount we like as long as the loan amount is greater than $2500. The going rate today in Los Angeles varies from 8% to as high as 18% paid monthly on the loan principal.

THE REAL WORLD MATH! So, a Ford pickup that “low books” at $9K warrants a car title loan in the amount of $4000 at let’s say 9%/month. Until this Ford truck owner pays off the $9K, they will be paying you $360/month, month after month after month… in fees.

Worst case? Eventually they stop paying you? You email your repossession service – revealed in our Course. This repo service scans tens of thousands of license plates in Wal-Mart, Best Buy, Target… parking lots. In a few hours/days they get a “hit.” This repo service hooks up the car, delivers it to the auction where it’s refurbished and sold in one of the auction lanes.

The auction sends you a check. How big? In the real world?

Low book value was $9k. Let’s assume the borrower has been paying you $360 per month for 9 months [$4000 loan at 9%/month payment. So… after 9 months this Ford truck is a little worn. It brings $7500 at the auction. The auction charges you $150 refurbishing fee [high] and $350 to perform auction services [high: include repo charges]. You net $7000.

Summing up:

  • You loaned the owner of this Ford truck $4000.
  • You received 9 payments of $360 = $3240 [Note these are FEES NOT LOAN PRINCIPAL PAY DOWN!]
  • You received $7000 from the auction
  • In total, over this 9 month period, you received $10,240 [$3240 + $7000 = ]. You loaned the Ford truck owner $4000. Your NET is $6240.
  • That’s a 253% ROI on your money in .7 years [270 days]

The more likely scenario? The one we experience?

We have car title loan clients who have customers that continue to pay their monthly fee payment for YEARS! In this example, $360/month year after year! The result? After a car title loan borrower pays $360/month – month after month – they still owe you the $4000 loan principal!

Get started now! Let us teach you how we do it. Learn “The Business of Lending Money to the Masses” today.


02
Aug

Ohio Payday Loan Law

According to Ken Rees at Elevate: “Ohio’s new Fairness in Lending Act will likely reduce credit availability, potentially creating increased demand for Elevate’s Elastic and Today Card products, which he indicated would be acceptable under the new law. The new law does the following:

  • Limits loans to a maximum of $1,000.
  • Limits loan terms to 12 months.
  • Caps the cost of the loan – fees and interest – to 60 percent of the loan’s original principal.
  • Prohibits loans under 90 days unless the monthly payment is not more than 7 percent of a borrower’s monthly net income or 6 percent of gross income.
  • Prohibits borrowers from carrying more than a $2,500 outstanding principal across several loans. Payday lenders would have to make their best effort to check their commonly available data to figure out where else people might have loans. The bill also authorizes the state to create a database for lenders to consult.
  • Allows lenders to charge a monthly maintenance fee that’s the lesser of 10 percent of the loan’s principal or $30.
  • Requires lenders to provide the consumers with a sample repayment schedule based on affordability for loans that last longer than 90 days.
  • Prohibits harassing phone calls from lenders.
  • Requires lenders to provide loan cost information orally and in writing.
  • Gives borrowers 72 hours to change their minds about the loans and return the money, without paying any fees.”

Read the story here.

15
Jun

Title Loan Business Plan

Car Title Loan Business Plan: How to Start a Title Loan Company

You want to make serious money by lending money to the masses or you would not be reading this.

To be successful as a lender – or in any other entrepreneurial endeavor – you really only have to be good at  a few things:

  • Picking the right business niche
  • Raising money
  • Hiring good people
  • Ability to iterate through challenges
  • Be bold. DO OR DO NOT!

Pick the Right Business Niche

Let’s get real!

Lending money to the masses can be very profitable!

Payday loans, signature loans, car title loans, personal cash advances, merchant cash advances, business to business loans… whatever you call them, all can be very profitable.

Real world example?

We’re charging $15 to $30+ for every 14 day loan we make. [Depends on the state we’re in or the tribe we collaborate with.] That’s a 400%+ annual percentage rate (APR) for a borrower to use our money for two weeks.

I’ve watched stores reach $10,000 in loans after only being opened 3 weeks; within a year, $100,000 on a good week and generating $50,000/month in fees.

Sure. Lenders have costs. Payroll costs, utility costs, website costs, merchant processing, rent, legal, taxes… but you get the picture.

A lender’s inventory is MONEY!

It’s not flowers that die on you. It’s not food that rots. It’s MONEY, MOOLAH, COIN, DINERO, SCRATCH $$. NICE!!

DONE! I’ve established that the business of lending money to the masses is very profitable!

How to Start a Loan Business

Click the IMAGE to Start a Title Loan Business

Raising Money

This is a mindset. It’s about presentation. Practice getting good at distilling your idea into a bite sized amount. Get your business launched.

I’m not taking about immediately achieving huge scale. Just get your loan business open for business and fund a few loans. Store front, Internet, mono-line, combo… just fund a few loans!

Next?

Friends, family, peers, members of your network… will find out what you’re doing.

They will want to learn more. Don’t be shocked when they say something along the lines of, “I have $20K sitting in the bank earning 1% per year before taxes and inflation. Could you put my money to work in your new business?

Of course you can! Offer them 6%, 8%, 10%+ per year. You can afford it when you’re grossing 500%+ APR’s on your loan portfolio!

NOTE: Not sure how I’m calculating these APR’s? Go here: Sample APR Calculations

Hiring Good People

If you’re good at raising capital, you can hire people to do everything else. You can hire a CEO. You can hire a lawyer. You can hire an experienced customer service representative.  You can buy “off the shelf” loan management software. You can subscribe to a sub-prime consumer credit reporting service.

You can hire great people to do any part of this business you choose to. YOU GET MY POINT!

To hire right, you need a big funnel. You have to sort through a ton of leads. You need a system; an onboarding process. You’ve got to learn how to do this! [This intel is in our “How to Start a Loan Business.”

The quality of your life is about the people around you.

Everything that bad happened to you in the last 10 years did not happen in a bubble.

Someone either DID or DID NOT do something to you.

That’s life.

Most problems in life are people problems.

We let the wrong – or right – people into our lives.

In business there are some whack jobs! Don’t let them in!

Now go out and BE BAD!

Jer – Trihouse Consulting TrihouseConsulting@gmail.com

http://www.PaydayLoanIndustryBlog.com

https://www.AutomobilePawn.com

04
Apr

Open a California Car Title Loan Business

How to Open a Car Title Loan Company

For both car title loan lenders and their customers: California

Exercise caution before borrowing money via an automobile title loan.

Title loans require the borrower to sign over the title (pink slip) to your car, RV, motorcycle, boat, mobile home as collateral for your title loan.

If you miss payments or default on your car title loan, the lender can take your vehicle.

Tips for consumers considering an auto title loan:

  • Borrow only as much money as you can afford to fully repay when the payment is due.
  • You have the right to full disclosure in your contract of all interest charges, the annual percentage rate (APR) of the loan and all fees.
  • The final contract must be in the language in which you negotiated it.
  • Before you take out a title loan, read the contract thoroughly and be sure you understand all the terms.
  • Once the title loan agreement is signed, you are legally responsible to fulfill the obligations in the contract.
  • Be aware some title loan lenders use remote engine shutdown devices that allow them to turn off your car if you don’t make payments. Some of these devices have GPS tracking capability.
  • These car starter interrupt devices must be disclosed to the borrower.
  • Car title loans are quick and easy to obtain but borrower’s will “pay through the nose” to get one.
  • Borrowers should reach out to family, friends, peers, church, their employer… all possible alternatives before getting a car title loan. Of course, who really wants to disclose their temporary financial hardship to anyone but a car title loan professional? NO ONE!

Examples of car title loan alternatives include asking your employer for an advance on your next paycheck; finding out if your bank or credit union provides short-term credit products; asking creditors for more time to pay your bills; asking for a loan from a relative or friend.

Auto title loans typically are advertised as short-term loans for people who need money quickly but may not have access to more conventional loans, due to temporary financial challenges and low credit scores.

Few assets are more important to Californians’ financial security than their cars.

Borrowers who use their auto titles as loan collateral are risking that asset.

Car title lending can be VERY profitable for the lenders. APR’s exceed 100% per year.

Car title loans are an expensive solution for borrowers in financial straits.

The amount of these loans is always less than what the car is worth. Smart car title loan lenders only loan a maximum of 50% of the “low Book value” of the car.

WARNING: IN CALIFORNIA – AND MOST STATES – FOR ALMOST ALL AUTO TITLE LOANS, THE INTEREST RATE LENDERS CAN CHARGE IS UNLIMITED.

CAR TITLE LOANS ARE A LOAN PRODUCT OF LAST RESORT FOR BORROWERS.

Current California state law does not limit interest rates for consumer loans of $2,500 or more. [CFL License.] This includes car title loans.

Last year, nearly 100 percent (99.99 %) of auto title loans equaled or exceeded that $2500 threshold.

The APR (annualized interest rate) on the vast majority of car title loans was 70% to 100% plus.

Title Loan Business

Start a Title Loan Business

Title loan lenders who follow the “Best Practices” discussed in our “How to Start a Car Title Loan Business” will disclose ALL fees, interest rates, add-ons… to the borrower before the title loan is consummated. [You want to learn how to make money with a car title loan business? Click here.]

Car title loan borrowers should carefully review the terms of the loan BEFORE signing the title loan contract.

Always check with the California Department of Business Oversight on a company’s license BEFORE entering into an agreement for an auto title loan.

www.dbo.ca.gov 1-866-275-2677

 

01
Apr

Starting a Car Title Loan Business

Starting a title loan business in California?

You want to start a title loan business? Need the basics? What can you charge title loan borrowers in fees and interest? How do car title loans work?

How to Start Title Loan Biz

How to Start Title Loan Biz

(This piece is focused on starting an auto title loan business via the Internet or a store-front in Calififornia. As an entrepreneur contemplating a title loan business startup, know that they are legal in roughly 20 states and we have the license applications, sample contracts and documents, and access to the laws in each state.)

Inspired by a consumer advisory from the California Department of Business Oversite, this Post does a good job of providing California car title loan startup entrepreneurs with the basics about title loan, pink slip loans, auto equity loans…

What’s a car title loan?

Title loans are called many names. Here’s a few auto title loan terms used by consumers to discover a title loan lender:

  • Pink slip loans
  • Auto title loans
  • Automobile title loans
  • Car equity loans
  • Auto equity loans
  • Cash for car title loans
  • Title loans
  • Auto collateral loans
  • Whatever you want to call them…

Basically, car title loan lenders loan money to a borrower in return for the title to the borrower’s car. The borrower is allowed to keep possession of the car and continue to drive it. We charge the borrower whatever we wish for lending the borrower our money. In our California stores, we charge 60% to 120%+ for our loans. (Typically, 8% – 18% per month on the outstanding loan principal.)

If the customer fails to pay us on time AND fails to contact us AND fails to make ANY effort to work with us, we repossess their car. We have it picked up by an independent service. We have the car delivered to the auction. The car is sold at the auction. We deduct our costs, fees and interest from the monies received from the auction company. Any remaining balance is mailed to our borrower.

Title loan Advisory by California Department of Business Oversite

1st, The CDBO advises “caution before borrowing money through an automobile title loan.”

  • Title loans require you to offer your car as collateral for your loan.
  • If you miss a scheduled payment your title loan lender can reposses your vehicle.

Tips for consumers considering an auto title loan:

  • Borrow only as much money as you can afford to fully repay when the payment is due, which may be less than the amount you may be eligible to receive.
  • You have the right to full disclosure in your contract of all interest charges, the annual percentage rate (APR) of the loan and all fees. The final contract must be in the language in which you negotiated it.
  • Before you take out a loan, read the contract thoroughly and be sure you understand all the terms.
  • Once the loan agreement is signed, you are legally responsible to fulfill the obligations in the contract.
  • Be aware some lenders use remote engine shutdown devices that allow them to turn off your car if you don’t make payments. Some of these devices have GPS tracking capability.
  • Although these loans are quick and easy to obtain, you pay higher prices for the convenience.
  • ABOVE ALL, CONSIDER AVAILABLE ALTERNATIVES. Examples include asking your employer for an advance on your next paycheck; finding out if your bank or credit union provides short-term credit products; asking creditors for more time to pay your bills; asking for a loan from a relative or friend.

Auto title loans typically are advertised as short-term loans for people who need money quickly but may not have access to more conventional loans often due to poorcredit scores.

From the California Department of Business Oversight:

“Few assets are more important to Californians’ financial security than their cars. Borrowers who use their auto titles as loan collateral are risking that asset. That’s why we strongly urge
consumers to exercise great care before taking out an auto title loan, and to try other options first. The amount of these loans typically is less than what the car is worth.”

WARNING: FOR ALMOST ALL AUTO TITLE LOANS, THE INTEREST RATE LENDERS CAN CHARGE IS UNLIMITED.

THIS SHOULD BE A LOAN PRODUCT OF LAST RESORT.

“Current California CFL License holders state law does not limit interest rates for consumer loans of $2,500 or more. The annualized interest rate on the vast majority of these loans ranged from 70% to 100% and higher. Even if you don’t have the protection of interest rate limits, the law requires lenders to deal with you fairly and honestly. That means they must fully inform you about the interest you will pay.”

“Carefully review the terms of the loan BEFORE you sign a contract! Always check with the Department of Business Oversight on a company’s license BEFORE entering into an agreement for an auto title loan. www.dbo.ca.gov 1-866-275-2677.”

ATTENTION ENTREPRENEURS: You want to start a car title loan business? Start Here!

How to Start a Loan Business

HOW TO START A TITLE LOAN BUSINESS

01
Apr

Arizona Car Title Loans: CONSUMER LENDER LOANS FINTECH

Title loan companies are still specifically included in this new Arizona Fintech Consumer Loan law.

These lenders are the successors to payday loans, who lend small sums of money at relatively high interest rates using the customer’s vehicle as collateral.

Title loans are specifically included in this new bill.

Arizona:

ARIZONA CHAPTER 55
35 REGULATORY SANDBOX PROGRAM
36 ARTICLE 1. GENERAL PROVISIONS

IN THIS CHAPTER, UNLESS THE CONTEXT OTHERWISE REQUIRES:
“APPLICABLE AGENCY” MEANS A DEPARTMENT OR AGENCY OF THIS STATE ESTABLISHED BY LAW TO REGULATE CERTAIN TYPES OF BUSINESS ACTIVITY IN THIS STATE AND PERSONS ENGAGED IN SUCH BUSINESS, INCLUDING THE ISSUANCE OF LICENSES OR OTHER TYPES OF AUTHORIZATION, THAT THE ATTORNEY GENERAL DETERMINES WOULD REGULATE A SANDBOX PARTICIPANT IF THE PERSON WAS NOT A REGULATORY SANDBOX PARTICIPANT.

“INNOVATION” MEANS THE USE OR INCORPORATION OF NEW OR EMERGING  TECHNOLOGY OR THE REIMAGINATION OF USES FOR EXISTING TECHNOLOGY TO ADDRESS A PROBLEM, PROVIDE A BENEFIT OR OTHERWISE OFFER A PRODUCT, SERVICE, BUSINESS MODEL OR DELIVERY MECHANISM THAT IS NOT KNOWN BY THE ATTORNEY GENERAL TO HAVE A COMPARABLE WIDESPREAD OFFERING IN THIS STATE.

“INNOVATIVE FINANCIAL PRODUCT OR SERVICE” MEANS A FINANCIAL PRODUCT OR SERVICE THAT INCLUDES AN INNOVATION.

“REGULATORY SANDBOX” MEANS THE PROGRAM ESTABLISHED BY THIS CHAPTER THAT ALLOWS A PERSON TO TEMPORARILY TEST INNOVATIVE FINANCIAL PRODUCTS OR SERVICES ON A LIMITED BASIS WITHOUT OTHERWISE BEING LICENSED OR AUTHORIZED TO ACT UNDER THE LAWS OF THIS STATE.

“SANDBOX PARTICIPANT” MEANS A PERSON WHOSE APPLICATION TO PARTICIPATE IN THE REGULATORY SANDBOX IS APPROVED PURSUANT TO THIS CHAPTER.

“TEST” MEANS TO PROVIDE PRODUCTS AND SERVICES AS ALLOWED BY THIS CHAPTER.

Program purpose:

THE ATTORNEY GENERAL SHALL ESTABLISH A REGULATORY SANDBOX PROGRAM IN CONSULTATION WITH APPLICABLE AGENCIES OF THIS STATE TO ENABLE A PERSON TO  OBTAIN LIMITED ACCESS TO THE MARKET IN THIS STATE TO TEST INNOVATIVE FINANCIAL PRODUCTS OR SERVICES WITHOUT OBTAINING A LICENSE OR OTHER  AUTHORIZATION THAT OTHERWISE MIGHT BE REQUIRED.

Application process and requirements; fee
ANY PERSON MAY APPLY TO ENTER THE REGULATORY SANDBOX TO TEST AN 34 INNOVATION. THE ATTORNEY GENERAL MUST ACCEPT AND REVIEW EACH APPLICATION FOR ENTRY INTO THE REGULATORY SANDBOX ON A ROLLING BASIS.

AN APPLICATION MUST DEMONSTRATE THAT AN APPLICANT BOTH:
1. IS AN ENTITY OR INDIVIDUAL THAT IS SUBJECT TO THE JURISDICTION OF THE ATTORNEY GENERAL THROUGH INCORPORATION, RESIDENCY, PRESENCE AGREEMENT OR OTHERWISE.

2. HAS ESTABLISHED A LOCATION, WHETHER PHYSICAL OR VIRTUAL, THAT IS ADEQUATELY ACCESSIBLE TO THE ATTORNEY GENERAL, FROM WHICH TESTING WILL BE 43 DEVELOPED AND PERFORMED AND WHERE ALL REQUIRED RECORDS, DOCUMENTS AND DATA 44 WILL BE MAINTAINED.

3 PERSONS THAT ALREADY POSSESS A LICENSE OR OTHER AUTHORIZATION UNDER STATE LAWS THAT REGULATE A FINANCIAL PRODUCT OR SERVICE MUST FILE AN 3 APPLICATION WITH THE ATTORNEY GENERAL TO TEST INNOVATIVE FINANCIAL PRODUCTS OR SERVICES WITHIN THE REGULATORY SANDBOX.

FOR A SANDBOX PARTICIPANT TESTING CONSUMER LENDER LOANS AS DEFINED IN SECTION, AN INDIVIDUAL CONSUMER LENDER LOAN MAY BE  ISSUED FOR UP TO FIFTEEN THOUSAND DOLLARS, EXCEPT THAT AGGREGATE LOANS PER CONSUMER MAY NOT EXCEED FIFTY THOUSAND DOLLARS. ALL CONSUMER LENDER LOANS ISSUED IN THE REGULATORY SANDBOX, INCLUDING LOANS IN EXCESS OF TEN THOUSAND DOLLARS, ARE SUBJECT TO ALL OF THE FOLLOWING:

Arizona Fintech Legislation 2018
23
Feb

Car Title Loan Lenders Beware: Be Careful When Serving Active-Duty Service Members!

How to Start a Car Title Loan BusinessTitle loan lenders serving active-duty service members NO-NO!

“Department of Justice (DOJ) goes after car title loan lenders and city government for their repossession by tow truck vendors for towing, selling and auctioning active service member automobiles.”

Done right, a car title loan lender can make a lot of money. Done wrong, your title loan business can put you in a heap of pain! Want to avoid the pain? Learn “How to Start a Car Title Loan Business” here: Get Started.

Even city government can screw up when dealing with active-duty service members. A specific example? On June 22, 2015, Chief Petty Officer Hartzog’s military legal assistance attorney sent a letter to Pinky Tows that outlined the facts and applicable SCRA provisions and sought restitution of $22,889.95 for the value of the 1997 Chevrolet S-10 and for the tools and personal items that were stored in the motor vehicle.

The Service members Civil Relief Act (SCRA) requires a person, a car title loan company, city governments… having a lien on a vehicle owned by an active-duty service member to obtain a court order before enforcing a lien.  The DOJ’s complaint alleges that Honolulu and their tow truck general contractor violated the SCRA by towing vehicles belonging to three active-duty service members identified in a complaint and the subsequent disposition of these vehicles without court orders.  The settlement agreement states that a DOJ investigation – launched in response to information provided by military attorneys – revealed that between 2011 and 2016, the city of Honolulu auctioned 1,440 vehicles registered to individuals who identified themselves as service members on city forms during their motor vehicle registration process.

How to Start a Loan Business

How to Start a Title Loan Biz

NATURE OF THE ACTION
1. This action is brought by the United States to enforce the provisions of the Service members Civil Relief Act (“SCRA”), 50 U.S.C. §§ 3901-4043, against the City and County of Honolulu, Hawaii (hereinafter “Honolulu”) and P M Autoworks, Inc. d/b/a All Island Automotive Towing (hereinafter “All Island Towing”) (collectively “the Defendants”) for illegally auctioning, selling, or otherwise disposing of the motor vehicles and personal effects of active-duty service members.

2. The purpose of the SCRA is to provide service members with protections against certain civil proceedings that could adversely affect their legal rights while they are in military
service. One of those protections is the requirement that a person holding a lien on the property or effects of an active-duty service member obtain a court order prior to enforcing the lien. The
court may stay the proceedings for a period of time or adjust the obligations to preserve the interests of all parties.

3. Neither Honolulu nor its contracted towing company, All Island Towing, determines whether the motor vehicles they auction, sell, or otherwise dispose of are owned by active-duty service members.

4. By failing to obtain court orders before auctioning, selling, or otherwise disposing of the motor vehicles and personal effects of protected service members, the Defendants prevented service members from obtaining a court’s review of whether the lien sales should be delayed or adjusted to account for their military service.

5. Since January 1, 2011, the Defendants have auctioned, sold, or otherwise disposed of the motor vehicles of 1,440 individuals who had identified themselves as active-duty service members during the motor vehicle registration process. The Defendants auctioned, sold, or otherwise disposed of these vehicles to satisfy liens without obtaining court orders.

6. Prior to January 1, 2011, Honolulu and/or its contracted and subcontracted towing companies auctioned, sold, or otherwise disposed of the motor vehicles of other active-duty service members to satisfy liens without obtaining court orders.

Here’s the details on one of the 3 cases – the DOJ filed on. Chief Petty Officer Hartzog and his 1997 Chevrolet S-10.

Neither Honolulu nor its current contracted towing company, All Island Towing, determines whether the motor vehicles they auction, sell, or otherwise dispose of are owned by active-duty service members.

Honolulu’s Lien Sale of CPO Hartzog’s 1997 Chevrolet S-10

At all times relevant to this complaint, CPO Hartzog’s motor vehicle was registered in Hawaii. During the motor vehicle registration process, CPO Hartzog completed a non-resident driver form which identified him as a servicemember and exempted him from paying certain state and county motor vehicle weight taxes on that basis.

30. In October 2014, CPO Hartzog was aboard a U.S. Navy ship being transported to his temporary duty station in East Asia. Without his permission, his roommate drove his 1997 Chevrolet S-10 and was subsequently arrested. The motor vehicle was towed by Pinky Tows, a subcontractor of All Island Towing.

31. In early November 2014, CPO Hartzog learned via Facebook that his truck had been towed. On November 5, 2014, he executed a power of attorney onboard the naval ship, designating a fellow chief petty officer as his agent. On the same date, he scanned and emailed the executed power of attorney to his agent in Honolulu.

32. On or about November 11, 2014, the agent took the document to Pinky Tows in an attempt to retrieve CPO Hartzog’s motor vehicle and his personal effects. Pinky Tows refused to accept the power of attorney or release the motor vehicle. Pinky Tows refused to allow the agent to remove valuable tools and personal items from the trunk of the motor vehicle because the agent was not the motor vehicle’s legal owner.

On December 3, 2014, Honolulu attempted to auction the motor vehicle and its contents, but they did not sell. Honolulu released the motor vehicle to All Island Towing, and All Island Towing subsequently disposed of the motor vehicle and its contents. Neither Honolulu nor All Island Towing obtained a court order prior to putting CPO Hartzog’s motor vehicle up for auction or before disposing of the motor vehicle.

34. On February 5, 2015, CPO Hartzog returned from deployment.

35. On June 22, 2015, CPO Hartzog’s military legal assistance attorney sent a letter to Pinky Tows that outlined the facts and applicable SCRA provisions and sought restitution of $22,889.95 for the value of the 1997 Chevrolet S-10 and for the tools and personal items that were stored in the motor vehicle.

36. Pinky Tows responded by letter on July 16, 2015, stating that it had only towed and stored CPO Hartzog’s truck, and that the truck was put up for auction by Honolulu and was scrapped by All Island Towing.

37. On August 12, 2015, the military legal assistance attorney sent a similar demand letter to Honolulu. Honolulu did not respond.

38. The Department of Defense’s Defense Manpower Data Center (“DMDC”) website shows that CPO Hartzog was an active-duty service member when his motor vehicle was towed, put up for auction, and subsequently scrapped. The DMDC is the central source for identifying, authenticating, and providing information on Department of Defense personnel, including verifying  service members’ active duty status.

Here’s a link to the rest of this Case: https://www.justice.gov/

Learn the in’s and out’s of successfully launching, operating and profiting with a Car Title Loan Business: CLICK HERE TO GET STARTED!

How to Start a Loan Business

HOW TO START A TITLE LOAN BUSINESS

02
Feb

Example Bill of Sale for Car Title Loan

Looking for an “Example Bill of Sale for Car Title Loan” business?

A “bill of sale” is a state or province legal document that transfers ownership of a car, trailer, truck, RV, motorcycle… from one person to another.

It is used in situations where the previous owner retains possession of the vehicle.

bill of sale is an important part of any vehicle sale; however, it is not the only thing you’ll need to consider.

  • No car title loan is final until you complete a title transfer. Without this step finalized.
  • Many states require a state-specific bill of sale form. In this case, you must fill out the bill of sale form offered by the motor vehicle agency in your state. This list includes some states that require and provide a specific type of bill of sale form when you buy or sell a vehicle:

A bill of sale may be used in a wide variety of transactions: people can sell their goods, exchange them, give them as gifts or mortgage them to get a loan. They can only be used:

  • to transfer ownership of goods that people already own;
  • to transfer ownership of moveable tangible goods; and
  • by individuals and unincorporated businesses.
  • Here’s a link to an example “Bill of Sale:” Bill-of-Sale-Example-81-03
13
Aug

Title Loans: Profits and ROI for Entrepreneurs

How to start a loan business

How to start a loan business

Profits & ROI for a Car Title Loan Business 

An entrepreneur’s perspective.

Let’s begin with a real transaction. We have equity in California stores amongst other states. We do payday loans, car title lending, scrap gold buying and tax services. In one of our locations, a new customer walked-in requesting a title loan on his truck. We determined the “low-book” value of his collateral was $15,000. We loaned $3000 at 9% per month ($270/month) for 36 months with zero pre-payment penalty. If this customer chooses to, he’ll pay us a total of $9720 in fees AND will still owe us $3000 in principal.

[NOTE: If you’ve already invested in our “How to Start a Car Title Loan Company Manual,” simply whip it out and read pages 58 – 59. It discusses car title loan business key business metrics in detail.]

My point? You really don’t need to read any further to grasp the profit potential of a car title loan company.

You can read any daily newspaper and stories like the following will appear:

A single mom in Iowa received a $350 auto title loan for 14 days, paid only the interest portion 8 times with no portion applied to the principal, in total paying $977.

An auto mechanic in Tyler, Texas paid $1211 in interest and fees over 11 months; only having reduced the principal balance by $15.

Burdened by medical expenses, Amy Poormom applied for and received a $500 auto title loan secured by her 1995 Ford Taurus.  This was a loan for 30 days and specified a loan fee of $30 per $100 borrowed.  Amy renewed (paid only the interest/fee of $150) for 12 months.  At this point Amy had paid a total of $1800 in interest/fees while still owing a balance of $500.

Of course, the “mean” auto title loan company repossessed Amy’s car (which she needed for work) and sold it for $750 at an auction.  Now Amy can no longer get to work.  Amy lost her job.  Worry and stress put her in the hospital.  Now, the hospital is suing her for non-payment; she has no job so she has no insurance.

What is not mentioned or even considered is that Amy Poormom needed the initial car title loan because no one in her family was willing to provide her with the $500 she needed for tires and brakes on her car.  The auto title loan company actually enabled her to gain another 12 months to get her life back on track.  It could be said that had the auto title loan company not come to her aid and provided some hope for Amy, the ultimate outcome would have come earlier.  Perhaps the family should have performed an intervention to help her with her crack habit. 

Ok, if you’re reading this you may think we are getting carried away.  But these are real-life events. 

ENOUGH OF THIS!

Back to profits.

States and provinces having specific auto title loan statutes and fee structures typically prescribe 3% – 30% per month on the principal loaned; 25% being the average in the USA.  Thus, a $1500 loan for a 30 day title loan could yield total interest payments of $45 to $375 with no portion applied to the principal.  Thus, if after 6 months, the title loan consumer continues to “roll-over” this title loan they will have paid as much as $2250 in fees/interest.  The balance due on their car title loan would remain $1500.

$500.00 borrowed for a 30 day term will typically cost $125 including miscellaneous fees.  The actual range is roughly $75 to $190 depending on the state/province and the exact circumstances of the title loan borrower.

After you enter the car title loan business, you’ll be pleasantly surprised by the number of customers who will have a late model Lexus or Mercedes.  It’s amazing how many people receive settlements and use the proceeds to purchase a new luxury car.  Later they experience cash-flow problems and need your help; and they have the title to their car!

Even in a state like Florida where the statutes prescribe an interest rate of 30% per annum, it’s a simple matter to put $250,000 “on the street” in auto title loans.  This would yield a gross of $75,000/year versus a CD earning $2,500 (1% annually).

These car title loan clients may not be totally bereft, but they are in trouble and are willing to borrow money at interest rates dwarfing those of a conventional bank loan; ranging from 17 percent a month (204 percent APR) on $500 or less to 10%, 20%, 30%  percent a month  on more than $5,000.

“Your job is your credit” rings very true in our industry; the business of lending money on car titles.  We have a Texas operator having 300 people bringing him $40 per week.  That’s $12,000 per week!  If the car breaks down, he has it fixed and adds it to their car loan.

A great number of auto title loan lenders add on several fees to improve their ROI’s and provide incentives to their title loan clients to pay on time.  These include but are not limited to:

  • A $15 fee if a collection letter must be mailed to the title loan consumer
  • A $25 returned check fee
  • Late fees (5% is typical)
  • Should a collector be sent to their door, a $50 to $100 fee is imposed

Deficiency fees are collected should a sale of the vehicle yield less than the amount owed on their title loan.

Want to know more? Learn how to start a car title loan business. Invest in our “How to Start a Car Title Loan Business Manual” now. In 30 seconds you’ll receive a link to download it in Adobe Acrobat [PDF] and begin your journey. Click Here!

Title Loan Business

Title Loan Business

13
Jun

Start a Georgia Car Title Loan Business

Georgia Title Pawn & Title Loans

How to open a car title loan business in Georgia

Governments move links often. If you encounter any broken links, start your research here: http://dbf.georgia.gov/

If you follow the advice offered in our “Car Title Loan Manual,” you’ll get a title loan here as part of your research: http://www.titlemax.com/georgia-title-loans/

The state of Georgia refers to car title loans as title pawn transactions.

Georgia Vehicle Registration: http://dor.georgia.gov/vehicle-registration

Georgia Title Loan legislation specifically authorizes “title pawns” as a type of pawn transaction.

A Georgia pawn broker may:

  • Charge interest and charges of up to 25% of the principal amount for each 30 day period during the first 90 days of a title loan.
  • Transactions extended beyond 90 days may be charged for each 30 day period interest and pawnshop charges which together equal no more than 12.5% of the principal amount advanced with a minimum charge of $5.00 each 30 days.

Georgia lawmakers passed the current title pawn bill authorizing lenders to charge an annual percentage rate that amounts to as much as 300 percent.

A quote from the Georgia Department of Banking & Finance:

“Some consumers turn to pawnshops and title lenders when they are in need of emergency cash or a short-term loan. It should be noted that the Georgia Department does not regulate these types of businesses.

Depending on jurisdiction, city or county ordinances outline specific requirements for licensing and supervision of pawnshops in Georgia. Local police departments/public safety departments are typically responsible for supervision of pawnshops in their jurisdiction and often handle the licensing process as well.

One of the primary purposes behind handing supervision of the Georgia title loan industry over to law enforcement agencies is to allow them to review pawn data for stolen property.

Section 44-12-136 of the Official Code of Georgia Annotated (O.C.G.A.) provides for the supervision and licensing of pawnbrokers by municipalities.

Title Loan Business

Title Loan Business

Again, in Georgia, the interest rate car title loan companies are allowed to charge is capped by law at 25 percent monthly (300 percent annually) for the first three months and 12.5 percent monthly after that (150 percent annually). This means a combined maximum yearly interest rate of 187.5 percent.

In the case of title pawn, Georgia law [O.C.G.A. Section 44-12-138(b)(3)] requires the pawnbroker to provide title loan borrowers the following written statement when a borrower pawns their vehicle: “Failure to make your payment as described in this document can result in the loss of your motor vehicle. The pawnbroker can also charge you certain fees if he or she actually repossesses the vehicle.”

Again, the Georgia Department of Banking and Finance DOES NOT license or have any jurisdiction over car title loan lenders, pawnbrokers or pawn transactions.

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