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AFSPA Member emails

    Great news from the FDIC regarding bank accounts for small
    dollar lenders
    Statement on Providing Banking Services.
    The FDIC encourages insured depository institutions to serve their
    communities and recognizes the importance of the services they
    provide. Individual customers within broader customer categories
    present varying degrees of risk. Accordingly, the FDIC encourages
    institutions to take a risk-based approach in assessing individual
    customer relationships rather than declining to provide banking
    services to entire categories of customers, without regard to the
    risks presented by an individual customer or the financial
    institution’s ability to manage the risk. Financial institutions that can
    properly manage customer relationships and effectively mitigate
    risks are neither prohibited nor discouraged from providing services
    to any category of customer accounts or individual customer
    operating in compliance with applicable state and federal law.    

    A new study released by a Kennesaw State University
    professor provides evidence against claims of payday loan
    critics that extended refinancing of these loans is harmful to
    consumers’ financial welfare. The study, which was based on
    the transactions of 37,000 borrowers over a four-year period, also
    found that borrowers who live in states with fewer refinancing
    restrictions fare better than those in more heavily regulated states.

    2013 FDIC National Survey of Unbanked and Underbanked
    Households
    According to data provide by the FDIC, the estimated Alternative
    Financial Services transaction volume is $320 billion annually.
    That's a very conservative estimate.
    The FDIC provides the following statistical annual breakdown:  
    •        Buy Here, Pay Here Auto Loans = $80 billion
    •        Check Cashing = $58 billion
    •        Pay Day Loans = $48 billion
    •        Remittances - $46 billion
    •        Open Loop Prepaid Cards = $39 billion
    •        Refund Anticipation Loans = $26 billion
    •        Money Order = $17 billion
    •        Rent-To-Own Transactions = $7 billion
    According to FiSCA estimates, AFS providers:
    •        Process more than 170 m checks per year, totaling more
    than $58 billion.
    •        Sell money orders with a face value of $17.6 billion per year,
    at an average cost of 64 cents each.
    •        Process more than 57 m bill payment transactions, at an
    average
    cost of 86 cents per transaction.   


    Subprime Lending Fuels New Credit Growth for Banks, Retailers,
    Equifax Says.
    The biggest credit card growth segment for both bank- and
    retail-issued cards is among subprime borrowers, those with credit
    scores of 660 or lower, according to Equifax, one of the three major
    credit bureaus. New credit card accounts for consumers with
    subprime credit scores have shot up 40 percent so far this year,
    compared to last year, says Amy Crews Cutts, Senior Vice President
    and Chief Economist at Equifax. "As the economy improves,
    consumers appear to be ready to expand, or in some cases, rebuild
    their credit," said Cutts. "... This reflects both consumers' appetite for
    new credit, and lenders' willingness to offer it. "Interestingly,
    balances for both subprime and prime have risen very little,
    suggesting that while consumers are positioning themselves for
    growth - they are also hesitant to take on new debt.
AFSPA
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AFSPA Association
AFSPA
Examination of
Small-Dollar Credit
Consumers
Payday Lending
Statutes by State
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Sherman and Associates
the acknowledged leader
in loan quotation
software, including all
credit insurance and debt
protection methods
.
RISK MANAGEMENT
DEBT BUYER
PAYMENT & CHECK PROCESSING
BUSINESS OPPORTUNITY
LOAN QUOTATION SOFTWARE
CHECK RECOGNITION
MARKETING
DATA / ANALYTICS
The Association of
ALTERNATIVE FINANCIAL SERVICE BUSINESS OWNERS
"We help you grow your business by providing you with
the best information, research, data, support, relationships
and by vetting and presenting the best available product and
service providers for the alternative financial services industry
."
RISK MANAGEMENT
INSURANCE SOLUTIONS
PAYMENT SOLUTIONS
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banking and financial
services law
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PAYMENT PROCESSING
Copyright 2015 @ All rights reserved.
ALTERNATIVE FINANCIAL SERVICE PROVIDERS ASSOCIATION
AFSPA
Mike Walrod is an alternative financial services guru in driving revenue,
implementing new products, systemizing processes, creating growth strategies,
and turning around struggling areas of the underbanked business model.
Mike has over 20 years experience at a 400 store payday loan operation
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BUSINESS CONSULTING
LEAD GENERATION
AFSPA members are Business Owners with retail and online operations in Alternative Financial Services
CHECK CASHING - PAYDAY - TITLE - PAWN - RENT-TO-OWN - BUY HERE/PAY HERE - SUBPRIME AUTO - INSTALLMENT - and more
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