This content was published prior to the combination of Dentons Sirote. Learn more about Dentons Sirote. 

If I had told you several weeks ago that the State Health Departments would materially impact your business as much as the CFPB, would you have believed me?  I doubt it.  But that is exactly what is happening with the COVID-19 (Coronavirus) pandemic.  

More and more states are headed toward a complete lockdown on businesses and quarantines. Even if consumer finance is an “essential service,” the impact of the orders from the Health Departments across the country concerning numerosity of persons allowed to congregate directly impacts brick & mortar businesses.  Those companies thinking it safe enough for customers and employees to mingle still rightfully fear the contagious nature of the Coronavirus, and this is causing a serious disruption in business.

Although we are in the middle of this mess and the statistics are still being compiled, I am confident that the stats will show that consumer finance companies and others that do business electronically with their clientele will have fared much better than those reliant on face-to-face encounters with customers.  That is, those companies set up to transact business over the web and via email, text, and telephone, will suffer less disruption. Of course, not all businesses can operate without face-to-face encounters with customers. Fortunately, consumer finance companies can—at least for some period of time.

I have written extensively in the past about utilizing E-commerce in the loan business. If there is any take-away from this month’s debacle, it is that consumer finance companies need to be in a position to make loans and take payments electronically.  Survival in today’s business world apparently depends upon it.

This is a milestone of sorts for me.  Today’s blog is the 100th in our series of Back to Basics.  What a sad way to celebrate…