Sometimes a tribal lending company will have two operating names even though there is only one actual organization. That's what is going on with Castle Payday. I have had a few communications with current and ex-customers of this tribal lender and the story is that their is a second company that operates somewhat behind the scenes as a facilitator, a collections agent, and a funding source to the loans that Caste Payday issues.
This alternate tribal lending firm is called Red Rock Tribal Lending and it's basically the larger (could we call it a holding company) ownership firm that owns and operates Castle Payday. Native American lenders usually operate with two units, and there are other times (like the case with Castle Payday and Red Rock Tribal Lending) where there are actually two distinct companies that are used to run the business.
The way it usually works is the first company is the public face of the firm. That would be Castle Payday, which has their busy website and they do a decent amount of marketing. The role of Castle Payday is to get as many people to visit their site and/or call the toll free phone number, all in the hopes that the would-be customer will fill out an application and be turned into an active customer.
The other side of the business, which in this instance is Red Rock Tribal Lending, is that they conduct a number of back office activities such as maintaining the accounts and conducting the accounting for the firm. Also, this part of the firm will do the wholesale borrowing, where they will borrow large blocks of money (say $1 million as an example) and then they will release those funds on a piecemeal basis to Castle Payday, where each time that Castle Payday approves and funds an application, Red Rock Tribal Lending will be issuing the funds (transferring the money) over to the 'Castle' side of the company.
Red Rock Tribal Lending also will be active with the collections activity for the organization. While Castle Payday works to bring in new customers there are always going to be some percentage of existing customers who will run into financial trouble and be unable (or simply unwilling) to repay their loan.
This is where Red Rock Tribal Lending will step in as the collections agent (not a formal collections company, but the equivalent of an in-house collector, as no accounts are being sold off to agencies) and try to "work on" these past due debtors. What will they do to try to get delinquent customers to repay? It will consist mostly of constant communications through email, phone calls (to work phone numbers, wireless numbers, land line phones) trying to get the customer either too embarrassed or too annoyed to not repay.
Red Rock Tribal Lending is not a lender in the normal sense, they are not a retail company. If you are looking to try to get a Native American loan you want to focus on your application with Castle Payday. If you become a customer with Castle Payday, then depending on how your relationship with the firm goes, you might run into Red Rock Tribal Lending at some point down the road.
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