ZestCash takes an entirely different approach to underwriting by combining Google-style machine learning techniques and data analysis, combined with traditional credit scoring. As a result, the company can offer credit to many people who historically would have been turned away.

Payday loans are common amongst consumers who dont have the credit to take out a standard loan through a bank. Payday loans shops allow users to pay a fee to borrow a certain amount of money. For example, a consumer will on average pay $60 to borrow $300 for 14 days. After 2 weeks, the borrower must pay the entire loan and fee back in one payment. If the borrower cannot pay the loan back, then he or she can get an extension but will need to pay another $60 for the additional time.

ZestCash says that the average payday loan gets rolled over 6 times, which means the average borrower pays $420 in fees to borrow $300 in principal. In 2010, 30 million Americans took out a payday loan. ZestCash basically offers a better alternative for those who are forced to take out these immediate loans. With ZestCash, borrowers pick how much money they want to borrow and for how long. As they pick their loan terms, the company clearly displays their weekly payment, allowing users to adjust the terms to arrive at a payment that is manageable for them. Instead of paying the money back in one big balloon payment, borrowers can pay back their loans in small chunks over time.

The company allows users to borrow between $300 and $800 and ic currently available in four states– Utah, Idaho, Missouri and South Dakota. In terms of payments, ZestCash auto debits peoples accounts on the dates their payments are scheduled for. And while most payday loans are processed through brick and mortar shops, ZestCash operates solely online. When someone signs up for a loan they also get a full payment schedule of when every payment will come out of their account, and can pay back the loan between three and eight months. The startup also promises flexibility when dealing with individual borrowers and late payments.

Since its launch in 2009, ZestCash has grown its staff to more than 75 people and has loaned millions of dollars to thousands of customers. For example, Stan, a ZestCash customer needed help paying the insurance deductible for his newborn child to be in the neonatal intensive care unit in a hospital. He took out a several hundred dollar loan to pay for the health care immediately and then paid off the loan in a matter of months.

“We believe all data should be credit data,” says Douglas Merrill, Founder and CEO of ZestCash. “By using ‘big data’ analytical techniques we are able to offer a fair, lower cost alternative to people who do not have access to traditional credit.”

He tells us in an interview that more than two-thirds of the companys customers come back for a loan. The data-based underwriting is not like anyone elses, Merrill says. Were here to make sure customers who may have good credit by non-traditional metrics can get good, fair loans.

Shawn Budde, Co-Founder and Chief Risk Officer of ZestCash, says that weve reached the natural limit of what traditional underwriting tools are capable of. The machine learning-based underwriting techniques ZestCash is developing will completely change the way lenders view and use data.

Matrix Partners’ Dana Stalder, who was the former CTO of PayPal, is particularly bullish on ZestCash and its potential. ZestCash is a multi-billion dollar opportunity, he told me in an interview. “ZestCash will disrupt the financial services industry by offering new services to millions of unbanked consumers. The opportunity is analogous to my experience at PayPal in the sense that both PayPal and ZestCash have figured out a way to provide more cost-effective services to customers through the novel application of analytics and technology.

Stalder says that one challenge that ZestCash faces, which is similar to an issue PayPal faced during its initial growth stage, is the fact that credit industry is an appropriately, highly-regulated industry. Because of this, the company needs to deal with launching in each state individually, on a state-by-state basis.

The new funding will be used towards further innovations in underwriting, expansion into additional states, and company growth.

Consumer Loan Quotes requires absolutely no credit checks and best of all, you do not even have to leave your home or office to quickly get approved for a payday loan or http://www.consumerloanquotes.com/no-fax-payday-loans-re-launches-with-new-educational-resources-and-redesigned-site.html (PRWEB) January 27, 2012

Consumer Loan Quotes requires absolutely no credit checks and best of all, you do not even have to leave your home or office to quickly get approved for a payday loan or http://www.consumerloanquotes.com/paydaycentral-net-many-consumers-not-adequately-informed-on-laws-relating-to.html ORLANDO, Fla., Feb. 3, 2012 — /PRNewswire/ –#xA0;In response to growing consumer interest and demand, PayDayCentral.net has decided to provide information on a state-by-state basis for regulations that are specifically applicable to payday lending. Instant payday loans have become very popular today, due to the economic hardships being faced by many, but this has also opened the door to unethical and illegal lending practices.

Personal loans are available for any purpose and with our instant personal loan process there will generally never be a

An updated code of practice announced by the Finance and Leasing Association (FLA) includes limiting the number of times a payday loan can be rolled over to a maximum of three – a move that follows sustained pressure from the government and consumer groups. But the FLA only has one member – Wonga – offering these loans, and critics say more action is needed to stop consumers racking up high levels of debt.

The rules cover short-term loans, often known as payday loans, which offer small amounts of money for a set fee. However, charges mount up if a borrower cannot afford to repay the debt in the agreed period, and those who extend or roll over their borrowing can end up paying annual interest rates of more than 4,000%.

Labour MP Stella Creasy, who is campaigning for the government to introduce a total cost cap on short-term loans, does not believe limiting roll overs will help consumers, and described the FLAs plans as tinkering around the edges.

What weve seen in America is that if you limit roll overs people then pay off the loan and take out another loan straightaway, she says. A limit on roll overs will only work if you have a limit on taking out a new loan, say 28 days.

A spokeswoman for debt advice charity Consumer Credit Counselling Service said it saw quite a large number of people who had rolled over loans three times or more, but rather than a limit it wanted to see lenders prevented from rolling over loans at all. She said Dollar Financial, which owns the Money Shop, has already signed up to a code in Canada agreeing to do just that, but still allows roll overs in the UK.

Lenders have been criticised by debt management companies and consumer groups for some of their practices, including racking up huge interest charges and then resorting to the use of debt collectors when customers default.

The FLA, which represents 50 companies offering consumer credit and motor finance, now wants members who offer payday loans to spell out the cost of borrowing before consumers apply, to remind consumers that the loans are designed for short-term borrowing, and to limit roll overs to three.

Fiona Hoyle, head of consumer finance at the FLA, said: A maximum of three roll overs is allowed, but only if the customer has asked for this and a proper credit assessment has been carried out each time. The code sets additional standards for responsible lending and a cap on roll overs is an essential part of this.

The Office of Fair Trading is expected to announce a review of the industry at the start of February. But Creasy said lenders seemed to be acting now to show that further statutory regulation would not be necessary.

The Consumer Finance Association (CFA), which represents almost three-quarters of the payday loans market, including high street lenders such as the Money Shop and Cash Converters (which already promises not to roll over loans), said it was also working on an enhanced code in collaboration with the Department for Business Innovation and Skills and other trade associations, which it planned to launch later in 2012.

Its chief executive, John Lamidey, said introducing a cap on roll overs could be detrimental to consumers, forcing them to seek credit elsewhere when they reach their limit, but the industry was under pressure from people who want a simple solution.

It may well be that we will bow to political or activists pressure and come up with a number [to limit roll overs], but Im not sure we will do so in the best interests of consumers, he said.

He added: The FLAs code, while very comprehensive, only regulates one payday lender. The CFA represents a number of the largest short-term lenders in the UK, so our code will reach significantly more consumers.

Dan McDonald, chief executive of the Medway Citizens Advice bureau, said payday loans should only be used for one-off emergencies. They certainly should not be rolled over, he said. Putting a limit of three on the amount of times a loan can be rolled over wont make any difference – it just means people can be taken advantage of three times instead of six or seven.

Personal loans are available for any purpose and with our instant personal loan process there will generally never be a

Payday lending has become a $7 billion-a-year industry. And even though some states limit the interest rate lenders can charge and a few states have banned payday loans all together, there has been little federal oversight. That is, until now.

Now the Consumer Financial Protection Bureau (CFPD) plans to examine both bank and non-bank institutions offering payday loans (called a deposit advance at banks) to ensure that lending practices are neither illegal nor harmful to borrowers.

Originally, payday loans were meant to be a temporary, short-term stop-gap between paychecks. However, too often when the next payday rolls around, borrowers have to roll-over their debt because they can’t repay what they owe: the sum they borrowed plus two-weeks of accrued interest. While that interest might be 17% for those two weeks, the annual rate often amounts to 400% to 600%.

While many insist that the industry helps people who have been overlooked by the banking system and denied credit elsewhere, there are plenty of horror stories from those who have been “churned through the system” (taking out multiple payday advances) or gouged by lenders.

There is an alternative to the never-ending cycle of payday loans: debt settlement. Debt settlement allows you to get out of debt at a fraction of what you owe.

Debt settlement companies negotiate with your creditors to reduce your current unsecured debt, like credit cards and payday loans, and pay off your creditors on your behalf. All you owe is one monthly payment to the debt settlement company. And often this amount is half of what you were paying to all your creditors combined.

If you are feeling the pinch of the never-ending payday loan cycle or you have other debts that are piling up, contact us to discuss how debt settlement can provide you with debt relief.

Personal loans are available for any purpose and with our instant personal loan process there will generally never be a

Those who took out payday loans, paying fees that could equal nearly 400 percent annualized interest, will be paying dearly.

We are deeply troubled by the exorbitant and unconscionable interest rates charged by payday lenders and the economic and personal distress this causes individuals and families.

In addition. it concerns us that our commonwealth continues to permit this practice that runs counter to simple morality and collective good judgment.

As pastors, we know many people who struggled their way through the holidays. On top of gifts, if there were any, there were heating bills to pay, rent due and food to put on the table. Payday loans offer a short-term fix while saddling households with long-term debt.

Based on data collected from the states Department of Financial Institutions database, the typical Kentucky payday borrower is indebted for 160 days a year and pays $529 in fees alone for $317 of credit.

These loans are predatory in nature. Lenders target low-wage earners, seniors and other vulnerable citizens. Because of their short-term due date and high fees, it is nearly impossible to repay a payday loan in time.

Instead, people find themselves still short of cash and forced to go back for another loan. We see this unending cycle persist despite other legal attempts at restrictions. The database provides strong evidence of this.

Common sense tells us that paying interest hand over fist is bad for families and bad for the economy when families cant pay for things they really need: a new pair of boots, gas so that they can drive to work, medication, etc.

Our religious heritage tells us that laying a debt trap is blatantly immoral. The Bible has spoken clearly about lending, warning against interest charged to the poorest.

Throughout its history, the church has opposed usury and usurers who, in the words of Martin Luther, oppress the poor and deprive them of their daily bread.

Since our nations founding, state usury laws have guarded citizens against unconscionable interest rates. But in recent years, our legislators have set aside the lessons of morality, history and common sense, allowing an immoral product to grow and flourish in our state.

Seventeen states and the District of Columbia have either never allowed payday lending or have limited interest to about 36 percent. Federal law protects military families with a 36 percent rate cap as well.

Lets resolve to offer this guarantee to Kentucky families before next Christmastime. Lets make 2012 the year that Kentuckians abolish the payday debt trap.

Personal loans are available for any purpose and with our instant personal loan process there will generally never be a

The group, called Fair Community Credit, this month issued what
it hopes will be the first of 500 loans in its first year of
business. The loans will generally range from $300 to $2,500 and
customers will have slightly longer to pay off the loans and the
interest rates will be far lower than the average 390 percent
interest rate charged by the payday loan industry, The Kansas City
Star reported ( http://bit.ly/xZdWUi).

Fair Community Credits organizers, working with Central Bank of
Kansas City, will make the loans from a more than $200,000 loan
guarantee pool donated by foundations and individuals. The catch is
customers must be referred to the group, which increases the
chances of the loans being repaid. So far, seven churches and
social agencies have agreed to refer only people they know
well.

People like Stevie Wakes, a Baptist minister in Kansas City,
Kan., who took out a $500 loan after having his pay sharply
reduced. He thought he would be able to pay it back in two weeks
but when he couldnt he had to renew his loan so often that the
$500 loan grew to $1,250 in four months. His annual interest rate
ballooned to 450 percent until he scraped together the cash to pay
off the loan.

Its a debt trap, Wakes said.

Fair Community Credits organizers realize that 500 loans wont
make much of a dent in an industry that, according to the Missouri
Division of Finance, issued 2.4 million loans in Missouri last
year. But they hope others in the region will copy their
effort.

We want it to be replicated, said Eva Schulte, executive
director of Communities Creating Opportunity, which worked three
years to establish Fair Community Credit.

The new product comes as local, state and federal officials are
considering restrictions on the payday loan industry.

Last week, Jackson County joined Kansas City and several other
area cities in restricting where payday lenders, pawn shops and
similar businesses can locate. Also last week, the federal consumer
protection agency announced it will begin taking a hard look at the
industry.

And at least two bills capping interest rates payday loans can
carry are pending in the Missouri General Assembly. And industry
critics in Missouri are mounting a statewide campaign to limit the
amount of interest payday lenders can charge customers at 36
percent, which is what Fair Community charges its customers.

Although the issue isnt on the ballot yet, campaign finance
reports show that representatives of payday lenders and the
installment loan business have collected more than $1 million to
try to keep the measure off the ballot.

Randy Scherr, a lobbyist for United Payday Lenders of Missouri,
said the high interest rates on payday loans are transparent and
are far lower than the overdraft fees someone might pay if several
checks bounce because of insufficient funds. And he said people who
take out payday loans know what they are doing.

People are very satisfied with the product, Scherr said,
because they know going in exactly what they will pay to borrow
money.

He said Fair Community Credit is just another competitor in the
lending field, from title loans to check-cashing operations and
pawn shops.

I welcome them to the marketplace and wish them well, Scherr
said. Competition is good.

___

Information from: The Kansas City Star,

http://www.kcstar.com

Consumer Loan Quotes is a full-service, nationwide provider of payday loans, cash advances and other personal loans.

The Attorney Generals lawsuit claims defendant Josh Mitchem and companies, PDL Support LLC and Platinum B Services LLC of Kansas City, Mo., control the operations of the payday loan websites, purported to be based in the Caribbean island of Nevis. According to the complaint, regardless of their location, the unconscionable interest rates charged by the lenders clearly violate Arkansas law.

The websites operated by these defendants offer loans that push consumers further and further into debt, McDaniel said. These usurious practices are just as illegal when offered on the Internet as when they were offered from storefronts in Arkansas. We shut down lenders operating in Arkansas and will continue to take action against online payday lenders.

The defendants and the websites they control offer loans with interest rates and fees far exceeding the amounts allowed by Arkansas law. One contract disclosed an annual interest rate of 644.12 percent. Interest rates for other loans were also greater than 600 percent.

The lawsuit states that Mitchem, PDL Support and Platinum B Services control the websites, phone numbers, fax numbers and bank accounts used to make and collect upon the loans. While the lending entities were said to be located in Nevis, all lending operations were based in the Kansas City area.

The lenders known to be controlled by the defendants include: Action Payday, Bottom Dollar Payday, Everest Cash Advance, Paradise Cash Advance, Red Leaf Lending and The VIP Loan Shop.

McDaniels lawsuit seeks an injunction to prohibit the defendants from offering or collecting upon the illegal loans in Arkansas, restitution to consumers and civil penalties.

Arkansas consumers with problems related to online payday loans or debt collectors attempting collection on payday loans may contact the Attorney Generals Consumer Protection Division at (501) 682-2341 or (800) 482-8982, or visit the Attorney Generals website at www.arkansasag.gov.

Source: Attorney General Dustin McDaniel

Personal loans are available for any purpose and with our instant personal loan process there will generally never be a

The re-launch of Direct Payday Lender has created a new avenue for consumers in need of secure and convenient payday loans. By adding new features, like a bevy of expertly written articles, and redesigning the entire homepage, Direct Payday Lender offers access to the best loans online. In addition to convenience, Direct Payday Lenders seeks to help consumers maintain responsible financial habits by providing details and advice on payday loans and to use them to their greatest advantage. These articles, as well as the simple online loan application, are all available free of charge directly from the homepage.

At Direct Payday Lender, our first priority is maintaining excellent customer satisfaction, and we have used that to influence every aspect of the re-launch of our site,” says spokesperson Michael Vaughn. “We have redesigned the homepage, replete with fast online application, to make applying more convenient and added expertly written informational resources to help consumers engage in the securest, most responsible borrowing habits possible.”

When customers visit the Direct Payday Lender website they can review expertly written articles on the various aspects of payday loans. These articles offer a detailed explanation of how cash loans work, basic rate and fee information, a list of common misconceptions about payday loans, and general information about the site.

When a financial crisis strikes, consumers can rely on Direct Payday Lender for cash loans. These cash advance loans offer quick emergency cash between paydays. Loan amounts typically range in value between $100 and $1,000. However, some lenders may lend up to $1,500 to select consumers with sufficient income to cover the principal plus interest charges and loan fees.

Cash loans can be used to cover emergency medical care like a doctor’s visit or hospital stay, auto repair or transportation costs, and even unexpected bills and credit card debt. They are a perfect solution for consumers in need of cash, but without the means to afford waiting until their next paycheck arrives.

There is no fee to submit an online cash loan application or receive quotes from lenders. With the new features available to all consumers, whether applying for a loan or not, Direct Payday Lender is helping people everywhere learn more about one of America’s most dynamic industries. The Direct Payday Lender website is user friendly, safe and available 24 hours a day.

###

Consumer Loan Quotes is a full-service, nationwide provider of payday loans, cash advances and other personal loans.

Payday loans are designed to provide emergency funds for a short period of time.

Amounts of between £50 and £1,000 are offered on weekly or monthly terms for a charge of around £30 for every £100 borrowed.

If the loan is paid back at the end of the term there isn’t a problem, but they are extremely expensive if the loan is rolled over for another month, as the cost equates to interest rates as high as 2,000% APR.

Consumer groups have been calling for payday lenders to be more heavily regulated for some time, over concern that many people end up in a spiral of debt after using their services.

Housing charity Shelter recently warned that one in seven Britons have used payday loans or unauthorised overdrafts in order to pay their rent or mortgage in the last year.

Payday lenders are expected to come under the scrutiny of a new watchdog, the Financial Conduct Authority (FCA), which will have to power to impose unlimited fines on lenders that break the rules.

When the FCA starts operating in 2013 lenders have to undergo more rigorous checks before they can commence trading and will have to present a business plan and explain how they will treat customers.

The FCA will have stronger powers than current watchdog, the Financial Services Authority, to investigate firms believed to be flouting regulations and will be able to ban specific products that harm consumers interests.

The Financial Services Bill will also see the launch of the Financial Policy Committee and the Prudential Regulation Authority, which will take on some of the outgoing Financial Services Authority’s role.

Together the three new agencies will be expected to develop a regulatory culture of judgment, expertise and proactive supervision, rather than ‘tick-box compliance’.

Personal loans are available for any purpose and with our instant personal loan process there will generally never be a