Charge-offs are part of the cost of doing business in payday advance operations, but if you are like Mike Carter of Cash Plus, your goal is to have the healthiest bottom line possible and that means finding a way to keep charge-offs to a minimum. As the Vice President of Retail Operations for Cash Plus, Carter knows that the key to maximizing profitability is stopping charge-offs before they happen. That is why he uses Teletrack for predictive analytics.

“There are certain elements a payday advance store needs to have in place in order to succeed,” stated Carter in a recent interview. “You must have a bank to process your checks, quality employees and a quality verification tool. The best verification tool out there is Teletrack.”

Carter goes on to say, “Getting better, more complete information in the application verification process is the key. Our standard application process includes requiring the applicant to show proof of employment, address and a bank account, but running a Teletrack inquiry provides the critical missing pieces, such as whether or not the consumer already has loans with other lenders. Having this information up front really helps to bolster the bottom line and reduce charge-offs.”

Carter explains that Cash Plus owner and president Craig Wells chooses to use Teletrack as part of the predictive analytics process at Cash Plus stores because Teletrack offers a complete menu of consumer information services that are designed to help payday advance stores minimize their losses. Teletrack data helps store personnel easily identify which applicants are a good risk and which are most likely to become a charge-off.

“Cash Plus has been using Teletrack since we began offering payday advances in 1997,” stated Cash Plus President and owner Craig Wells. “We evaluated Teletrack, and found that the service provides great results for us and that's why we strongly recommend using Teletrack to assess the risk of an applicant before making an advance.”

The franchisees at Cash Plus agree. Wells explains, “I use Teletrack in my stores to control losses because it works. While our franchisees are not required to use Teletrack as part of their verification process, the vast majority choose to use it because it lowers their losses, results in fewer returned checks, and improves collections.”

Carter adds, “I would definitely recommend Teletrack as an essential tool for payday advance stores, especially in today's climate. Collections are the bane of the payday advance business and that's why we encourage our franchise operators to use Teletrack. It puts them in control of their bottom line.”

Cash Plus stores rely on Teletrack because the Teletrack system offers a complete set of tools for the payday advance store owner. The system allows you to view the applicant's activity in every state where they have previously obtained a payday advance. The data Teletrack provides is unique and is gathered from non-traditional businesses across the country. An inquiry into the database can tell your store personnel if the applicant is - a high risk for becoming a charge off, currently has multiple open loans, has been charged-off from other payday advance stores and whether or not the consumer is fraudulently using a Social Security number.

“Our goal is to help as many people as possible, not to turn them away,” emphasizes Carter. “When we approve advances responsibly, we can keep consumers longer. So, when Teletrack returns certain information, that doesn't necessarily mean the applicant won't get an advance. We investigate the information in the Teletrack report and then the appropriate decision is made using predictive analytics.”

“It is an error in judgment not to use Teletrack.”

Carter explains, “If the Teletrack report shows that the consumer has previously charged-off at another payday advance location or if they have multiple outstanding advances somewhere else, they probably won't get an advance. Each situation is handled individually. Knowing which consumers pose the highest risk, we can decline those consumers and avoid entering into a situation that is guaranteed to end in a charge-off. Thanks to Teletrack, our overall number of charge-offs has dropped by 30-40%.”

Teletrack is also there to help stores collect by providing skip-tracing services to help locate a charged-off individual. When a charged-off consumer surfaces to do business with one of Teletrack's thousands of contributing businesses, current information is provided back to the store and may assist in recovering money owed.

“Teletrack helps you beat the odds,” concludes Carter. “It literally takes seconds to find out if a consumer is a bad risk. It's quick and it is helpful for approving a transaction. I couldn't imagine doing business without it.”

Jerry Todd founded Cash Plus, Inc., in 1984 as a chain of check cashing stores. In 1996, the company was purchased by current owner and president, Craig Wells. By 1997, Wells added payday advances to the service menu and over the last several years has successfully expanded the operation from 12 to 70 storefronts. The company currently employs more than 300 people and operates in California, Florida, Louisiana, Maryland, Michigan, Missouri, Nevada, Texas and Washington.

Mike Carter serves as the Vice President of Retail Operations for Cash Plus, Inc. Carter has extensive experience in the world of finance. Prior to joining the company in 2000, he worked for Bank of America for 18 years as a branch manager and as head of the auto leasing division.

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