becoming a pay day loan affilaite

10 replies
Hi
I have been looking at this idea for a while now and I have had a few different responses, I am looking at becoming a payday loan affilaite through my own website.

In its simplest form I will create a website and bring in traffic to my own website, which then the consumer will be sent to the direct lenders website that I am affiliated to for amount £x, I will then receive a commission from the direct lender and not charge the consumer for this service.

Also, I will not be giving any financial advice I will simply act as the middle man linking the direct lender with the consumer and working on solely commission from the direct lender once a loan has been fully authorised and sent out.

any help regarding where I stand with the FCA and if I have to be authorised would be great, so if anyone out there is involved in this line of work I would greatly appreciate any help on the subject.

Thanks, andy1212
#affilaite #day #loan #pay
  • Profile picture of the author Brent Stangel
    In its simplest form I will create a website and bring in traffic to my own website
    What is your plan to accomplish this?

    A lot of places don't allow ads for payday loans.

    Brent
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    • Profile picture of the author andy1212
      Hi Brent
      This is in its very early stages firstly I need to know about the FCA side of things and find out if I need authorising. This will have to be in place before anything else can be arranged or looked at. So if you have any info on that muchly appriciate that.
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  • Profile picture of the author DIABL0
    I don't know anything about the FCA as I'm in the US.

    However, as an affiliate, I can't imagine that it should have any effect on you / only pertains to actual lenders.

    All you are doing is driving traffic to a landing page.

    Here in the US anyone can sign up to be a payday loan affiliate.
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    • Profile picture of the author Brent Stangel
      Originally Posted by DIABL0 View Post

      Here in the US anyone can sign up to be a payday loan affiliate.
      Maybe...

      Eighteen States and the District of Columbia Prohibit Extremely High Cost Payday Lending

      States protect their citizens from usurious payday lending by prohibiting the product or by setting rate caps or usury limits.

      Georgia prohibits payday loans under racketeering laws. New York and New Jersey prohibit payday lending through criminal usury statutes, limiting loans to 25 percent and 30 percent annual interest, respectively. Arkansas's state constitution caps loan rates at 17 percent annual interest.

      After permitting high-cost payday loans, New Hampshire capped payday loan rates at 36 percent annual interest in 2009. Montana voters passed a ballot initiative in 2010 to cap loan rates at 36 percent annual interest, effective in 2011. South Dakota voters approved a ballot initiative in 2016 by a 75 percent vote to cap rates for payday, car title and installment loans at 36 percent annual interest. Arizona voters rejected a payday loan ballot initiative in 2008, leading to sunset of the authorizing law in 2010. North Carolina tried payday lending for a few years, then let the authorizing law expire after loans were found to trap borrowers in debt. The states of Connecticut, Maryland, Massachusetts, Pennsylvania, Vermont, and West Virginia never authorized payday loans. Legal Status of Payday Loans by State
      Good luck with that.

      Brent
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  • Profile picture of the author DIABL0
    The laws pertain to lenders in x state. As an affiliate, you do not have to concern your self with them.

    There are payday loan operations licensed in all states that it is legal and you as an affiliate can generate leads for those states.

    There are also networks that you can be an affiliate for and the leads are distributed to leaders for the required state.

    Also, anyone that belongs to just about any CPA network can easily get access and promote PDL offers.

    Anyone can be an affiliate.
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  • Profile picture of the author sheprd
    The FCA is very strict. If you are driving traffic to your site and the consumer is clicking on a banner etc to be transferred to the lender, you need not worry with the FCA. If you will have a form (even iframe) on your site you will have to follow very strict FCA rules about verbiage and content. Most likely, a reputable lead company will require you to have FCA authorization to host their form, even if it is through them. The US and UK are two very different animals in the pdl verticle.
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  • I think it´s unethical to promote payday loans. You will be responsible for getting people into serious debt if they sign up through your link.
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  • Profile picture of the author BottledWater
    Hey all,

    Happy Monday.

    I'm running a CPA offer right now that's both a personal and installment loan combined. I do know the interest rates vary from state to state and do have more favorable terms. The assuring thing about the offer i'm running is that the applicant does not have to accept the loan, nor run a credit check prior to the lender contacting them.

    Best.
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  • Profile picture of the author ChrisBa
    How are you planning on driving traffic to your site?

    The idea sounds very straight forward but you need to ensure you can get traffic to your site.
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  • Profile picture of the author Gambino
    Everyone who is mentioning traffic is hitting the nail on the head.

    Basically you have to drive enough traffic to achieve enough conversions to make more than you spend on the traffic or you can go out of business in a hurry.

    The other kicker is that you don't really own anything - if you're just a middleman. Your pay is dependent on the company.

    Personally, the payday loan space is not one that I would want to dive into without a lot of knowledge and/or resources. Plenty of other less competitive niches out there that pay well. And I say that as someone who works in a competitive space.
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