Payday Loan News Blog

Payday Loan News Blog - April 08 ...

> Advance America Announces First Quarter Revenue of $165.5 Million ... April 24, 2008
SPARTANBURG, SC -- Advance America, Cash Advance Centers, Inc. today reported the results of its operations for the first quarter ended March 31, 2008. During the first quarter of 2008 total revenues were $165.5 million, compared to $168.1 million for the same period in 2007, representing a decrease of 1.6%. The first quarter of 2007 results include operations for centers in Pennsylvania and Oregon, which were closed in late 2007. If you exclude the $13 million in revenue generated by these two states during the first quarter of 2007, revenues increased by 6.7% quarter over quarter... cont...

> Cash Store shares fall on settlement news ... April 24, 2008
EDMONTON, AB -- Shares in The Cash Store Financial Services Inc. fell 11 per cent in early trading then recovered yesterday, a day after the former Rentcash Inc. announced a tentative settlement of a class-action lawsuit over allegedly excessive charges on payday loans. The settlement, applying to clients outside Alberta and B.C., "does not constitute any admission of liability," the company said, but it will pay a total of $1.5 million in cash and $1.5 million in credit vouchers to affected customers... cont...

> Payday Loan Balance Needed ... April 24, 2008
WHEELING, WV -- “Payday lending” has gotten a bad name in Ohio, because it can be extremely costly for those who make use of it. State legislators want to offer borrowers some protections against what they view as exorbitant interest rates. Lenders can charge interest rates as high as 391 percent for short-term, risky “payday loans.” A proposal gathering strength in the General Assembly would limit that to 36 percent... cont...

> Critics say payday-loan reforms aren’t enough ... April 23, 2008
MIDLOTHIAN, VA -- Legislation to regulate payday-loan practices passed the 2008 Virginia General Assembly, but critics of the controversial and lucrative industry say the law is not enough to protect consumers. The number of payday-lending operators has risen since a 2002 law allowed the practice in Virginia. Six years ago, fewer than 50 such companies were licensed in Virginia, and they had about 300 payday-loan stores, according to the State Corporation Commission. Last week, the commission reported there were more than 80 licensed lenders and 825 locations... cont...

> LeadPoint launches payday loan service ... April 23, 2008
LONDON, EN -- LeadPoint is branching into pay day loan leads in the UK, following its success in the US. LeadPoint hopes to add to the existing 1,500 leads now traded via the exchange each day by offering customers short-term loans to bridge the gap prior to pay day. Clients can apply online with funds deposited on the same day and the repayment is then debited on pay... cont...

> Sponsors kill payday loan bill ... April 22, 2008
DENVER, CO -- A bill designed to cut fees on payday loans is dead. Sponsors of House Bill 1310 said today they will kill the legislation. They’re unhappy with an amendment from Sen. Jennifer Veiga, D-Denver, that was added on the Senate floor March 25. “We are killing this bill because, as amended, it no longer protects hardworking Coloradans,” Senate President Peter Groff, D-Denver, said in a statement... cont...

> Payday loan clients to share $3M settlement ... April 22, 2008
TORONTO, ON -- Payday loan clients of The Cash Store Inc. and Instaloans stand to share in a 3 million settlement of a class-action lawsuit. Lawyer David Thompson of Scarfone Hawkins LLP of Hamilton said today he has negotiated the settlement, subject to court approval. The proposed deal calls for half of the money to be paid in cash and half in vouchers to borrowers outside of British Columbia and Alberta. Clients will be eligible to share in the settlement will have received and repaid loans, plus a standard broker fee of 22.54 per cent of loans up until March 11, 2004 and 25 per cent afterward... cont...

> 50% run out of cash by the 21st ... April 22, 2008
LONDON, EN -- Rising food prices and household bills are increasingly biting household's budgets, with 28 per cent of people running out of cash – using overdrafts, credit cards and loans to get by – more than seven days short of payday – typically the 28th of the month. Pensioners and those on weekly benefits are running short of cash two days before their next payments... cont...

> Bank tries alternative to payday loans ... April 22, 2008
NEW HAMPSHIRE, CT -- A New Hampshire bank is launching a low-interest, short-term loan as an alternative to costly payday loans. St. Mary's Bank customers can now take out MyPay loans with a fixed 18 percent annual percentage rate. The new loans charge half the 36 percent interest cap that lawmakers want to impose on payday lenders... cont...

> Cash America Intl, First Quarter 2008 Earnings Conference Call ... April 21, 2008
FORT WORTH, TX -- Cash America International, Inc., a provider of specialty financial services to individuals, will hold its quarterly conference call to discuss First Quarter 2008 results on Thursday, April 24, 2008, at 8:45 a.m. Eastern Time (7:45 a.m. Central Time). This call is being webcast by Thomson/CCBN and may be accessed on Cash America’s website... cont...

> Bills.com Launches Effort to Help Military Families in Debt Hardship ... April 21, 2008
SAN MATEO, CA -- Taking the offensive against skyrocketing consumer debt, Bills.com is launching "Operation Debt Storm" to assist military families in severe debt hardship, and, according to co-CEO Brad Stroh, help them "completely annihilate debt" in their lives. With total consumer debt now totaling more than $2.5 trillion (excluding mortgages), U.S. household debt rising another 5.6 percent in the fourth quarter of last year, and the median revolving credit card balance nearing $7,000, Americans are in more debt than ever... cont...

> Alexandria Tax Plan Targets Payday Loans ... April 21, 2008
ALEXANDRIA, VA -- Alexandria is proposing to impose a steep new tax on payday lenders operating within the city, but the industry is vowing to fight the measure. Under a plan proposed by City Council member Justin Wilson, the city would use the money to offer consumer education services to low-income people who are taking out the high-interest, short-term loans... cont...

> Should payday loans should be outlawed? ... April 20, 2008
Like the writer for the American Legislative Exchange Council, I want to push free markets, limited government and individual freedom and responsibility as the solution to many of our nation's problems. However, when it comes to payday loans, I cannot remain dogmatic. I personally have seen the trouble that people get themselves into with these awful financial arrangements. They are like credit cards on steroids when it comes to wrecking the finances of families. They should be outlawed. I believe that limiting the return to lenders at 36 percent would effectively put them out of business... cont...

> Payday loans may be a thing of the past by next year ... April 20, 2008
PORTSMOUTH, NH -- A so-called payday loan helped a local woman get her car back on the road at a time when she was strapped for cash. But a year later, she says the loan put her in "financial quicksand" she has been unable to escape. "I pay it back, but then I have to borrow it again or I won't be able to pay my other bills," said the Seabrook woman, who did not want to be identified... cont...

> Payday loan firms under scrutiny ... April 20, 2008
CALGARY, AB -- Minutes after paying $60 in fees for a $300 loan, Terry Hartley just shrugs. "This one's not bad," Hartley, 47, says of the interest on the week-long loan. "It's not cheap, but it's better than some of them." Hartley, a courier who earns about $600 a week said he's recently declared bankruptcy -- fallout from his divorce and "wasting money." He has a bank account, but no line of credit... cont...

> State Supreme Court Upholds Payday Lender Fine ... April 18, 2008
LITTLE ROCK, AR -- The state Supreme Court on Thursday upheld a $1.4 million fine levied against the owner of 14 payday lending businesses in Arkansas for operating the check-cashing outlets without a license. The high court affirmed decisions by a Pulaski County circuit judge and the Arkansas State Board of Collection Agencies. In 2005, the board that regulates the check-cashing industry in Arkansas ordered Dennis Bailey to close his businesses because he did not have a license. Investigators later determined he was still issuing payday loans, and the board fined Bailey $1.3 million... cont...

> Assembly Guts Bill Limiting Payday Loan Interest ... April 16, 2008
SACRAMENTO, CA -- A state Assembly committee is gutting a bill that would have capped payday loan interest rates at 36 percent. The loan industry tells members of the Banking and Finance Committee that it can't survive a 36 percent rate cap. The industry now charges interest rates of more than 400 percent for 14-day payday loans... cont...

> Payday lending rate cap lands in Ohio Senate ... April 14, 2008
DAYTON, OH -- As a proposed cap on payday lending interest rates gains steam in the Ohio House of Representatives, a swell of support has begun in the state Senate. The Ohio Coalition for Responsible Lending on Monday praised the introduction of Senate Bill 333, which would mandate an all-inclusive 36 percent annual percentage rate cap on Ohio's more than 1,600 payday lenders. The bill, introduced by Sen. Tim Grendell, R-Chesterland, mirrors House Bill 333, one of two payday rate-cap bills introduced last fall... cont...

> Cash America International stock is up 41% in last 3 months ... April 12, 2008
FORT WORTH, TX -- Investing currently sucks... but Cash America International, Inc. (NYSE:CSH), America's largest pawn shop and payday loan service operator stock is up 41% in the last 3 months. Cash America may be one of the last 'safe stocks' these days headed into a gloomy and unpredictable 2008... cont...

> South Carolina House Panel Strips Key Payday Lending Protection ... April 11, 2008
COLUMBIA, SC -- Consumer advocates decried a move by a House panel Thursday that stripped a key payday lending protection from a bill that would have tied loan limits to a borrower's income. The committee also doubled the amount that could be borrowed to $600, said Sue Berkowitz, director of the South Carolina Appleseed Legal Justice Center, an advocacy group.... cont...

> Financial Freedom Slipping Away In Arkansas ... April 11, 2008
ARKANSAS -- In the latest episode of government-knows-best, another (nanny) state politician is working hard to take away a choice he thinks we shouldn’t have. After deciding that payday lending is a “deceptive and unconscionable trade practice,” Arkansas Attorney General Dustin McDaniel consulted his paternalist playbook last month and sent letters to 156 payday lenders threatening to sue them out of existence... cont...

> Financial Literacy at Record Low Due to Lack of Financial Education ... April 10, 2008
FORT COLLINS, CO -- The majority of consumers nationwide, regardless of age, income or education level, are not able to pass a basic quiz covering such topics as Credit and Banking, Real Estate and Mortgages, Car Buying, Insurance, Taxes, and Investing and Saving for the Future. The online quiz from FinancialLiteracyQuiz.com is comprised of 50 multiple-choice questions, provides an immediate score to visitors with suggested areas of improvement, and is free... cont...

> 59 Arkansas payday lenders call a halt, McDaniel says ... April 9, 2008
LITTLE ROCK, AR -- All but one of the 60 payday lending companies that were told last month to stop making high-interest loans have stopped the practice, Attorney General Dustin McDaniel said Tuesday. Fifty-two responded to McDaniel by his April 4 deadline, indicating they have discontinued offering payday loans above Arkansas’ constitutional 17 percent annual interest limit... cont...

> CORE Testifies Before OH AG Regarding PayDay Lending ... April 9, 2008
COLUMBUS, OH -- Congress of Racial Equality National Spokesperson Niger Innis will testify today at a public hearing on the issue of payday lending. The hearing is set for 4 p.m. on Wednesday, April 9 at Good Shepherd Baptist Church, 1555 E. Hudson Street, Columbus. Ohio Attorney General Marc Dann will chair the hearing with a committee of Ohio Legislators. Innis supports proper regulation of the payday loan industry such as H.B. 337 which creates a financial literacy education fund... cont...

> Credit unions may enter short-term loan business ... April 8, 2008
ST LOUIS, MO -- Local credit unions may offer a new option for those needing short-term loans, a state legislator said this week. State Rep. Michael Spreng, D-Florissant, told the Florissant City Council on March 24 that credit union representatives say they are willing to offer loans of $500 or less. Spreng said these loans would be an alternative to so-called "payday loan" or "check-cashing" firms that offer small loans with high interest rates.... cont...

> Frontera Investment Announces Acquisition of California Store ... April 8, 2008
OXNARD, CA -- Frontera Investment, Inc., formerly Bidnow.com, Inc. OTC: BDNW announced today that it has acquired a profitable financial services store in Oxnard, California, CW Check Cashing. Frontera is in escrow to acquire a high volume store (also in Oxnard, CA) within the next 45 days. Frontera now has 6 stores (four full service branches and two manned kiosks). Frontera utilizes advanced technology to offer competitive prices on a wide range of financial products and services, including check cashing, loans (payday and gold jewelry loans), money transfers, and tax preparation... cont...

> Dollar Financial comments on recent Manitoba rate structure ... April 7, 2008
BERWYN, PA -- We believe the newly proposed Manitoba legislation provides new growth opportunities for Money Mart in Canada, and we are comfortable that Money Mart will continue to operate efficiently under the new Manitoba model, while continuing to provide superior customer service.... cont...

> Are payday lenders all that bad, really? ... April 7, 2008
SANDUSKY, OH -- The payday loan companies that offer small loans at gigantic interest rates aren't exactly feeling the love these days. An organization called the Ohio Coalition for Responsible Lending calls such loans "legalized loan sharking." Mayors from all of Ohio's biggest cities have issued a statement calling for such loans to be curbed. And in Sandusky, Serving Our Seniors director Sue Daugherty has tried to focus attention on the hardships such loans create... cont...

> Both sides give views on payday loans ... April 6, 2008
TUCSON, AZ -- A vocal supporter and a vocal critic of payday lending faced off Sunday in a public forum at a Northwest Side church. Rudy Mares, the Southern Arizona coordinator of Arizonans for Financial Reform, and District 30 Rep. Marian McClure presented their sides of the payday-lending debate during an hour-long discussion at St. Mark's United Methodist Church, 1431 W. Magee Road. Arizonans for Financial Reform and McClure, R-Tucson, both have introduced opposing legislation pertaining to payday lending... cont...

> Payday loan interest limits set in Manitoba ... April 4, 2008
WINNIPEG -- The Manitoba Public Utilities Board has set limits on interest rates payday loan companies can charge customers. The maximum cost of credit will be 17 per cent for loans up to $500; plus 15 per cent for $501 to $1,000; and six per cent for loans between $1,000 and $1,500. With the decision released today, Manitoba becomes one of the first province's in the country to establish consumer legislation to protect payday loan customers by setting caps on the amounts payday lenders can charge.... cont...

> Banning Payday Lending May Hurt Some ... April 3, 2008
ROGERS, AR -- Jason Sandlin used a payday lender and didn't feel he was being preyed upon. He has worked for the same company for 14 years and has a checking account, but a two-year dispute with his insurance company ruined his credit and payday loans kept food on his family's table through February and March. Sandlin used B And K Check Cashers, 105 South Third St. in Rogers, to keep his family afloat for a couple of months after his twin four-year old sons had surgery in February at Arkansas Children's Hospital in Little Rock... cont...

> Are Payday Loan Businesses Preying on the Poor? ... April 3, 2008
SAN ANTONIO, TX -- When you need quick cash, you can find lots of businesses around town that'll give you a loan until your next paycheck. Payday loans have become pretty popular for some folks. However, Councilwoman Sheila McNeil says too many of the payday loan and check cashing businesses are popping up in poor neighborhoods and possibly preying on too many poor families. McNeil and the rest of city council are considering a possible plan to regulate where the businesses can open... cont...

> Alberta government quietly reviewing whether to regulate payday lending... April 2, 2008
EDMONTON, AB -- Alberta is quietly looking at whether it should regulate the payday loan industry, but with the deadline for submissions only weeks away, some agencies that deal with the working poor were not even aware of the review. Without issuing a news release, the government posted its discussion paper proposal to regulate the industry March 17 on a the Service Alberta Department website. The province has invited specific payday loan organizations and other groups to make submissions by April 21. "We want to make sure that consumers... cont...

> Attorney General's Office Demands Cash Flow Stop for Payday Lenders ... April 2, 2008
JONESBORO, AR -- The Arkansas Attorney General's Office is demanding all payday lenders to stop cashing checks. Based on two recent Arkansas Supreme Court Decisions regarding high interest rates charged by payday loan companies, the Arkansas Attorney General's Office is demanding that payday lenders stop their lending practices immediately. McDaniel says the rulings make it clear that the high interest rates charged by payday lenders violate the state constitution and the Arkansas Deceptive Trade Practices Act... cont...

> 22 payday lenders tell state they're closing ... April 2, 2008
ARKANSAS -- McDaniel said Tuesday that more than 20 payday lenders have said they plan to close in response to his directive last month to 156 payday stores that they have to shut down by Friday. On March 18, McDaniel’s office mailed letters to 156 payday lenders, telling them to “cease and desist your payday lending practices” because they violate the state’s constitutional 17 percent usury limit. Gabe Holmstrom, spokesman for McDaniel, said 22 stores have said they will close... cont...

> Salt Lake Council To Consider Payday Lender Ordinances ... April 1, 2008
SALT LAKE CITY, UT -- As a six-month moratorium on new payday lending businesses in unincorporated Salt Lake County is set to expire, the County Council is considering several new ordinances that regulate the high interest loan practice. "It's not the business of municipalities to regulate financial institutions. That's the business primarily of the federal government and secondarily of the state government. For some reason in this area, both the state government and the federal government are unwilling to act," says County Council Joe Hatch. Hatch says county action is necessary because the Utah Legislature failed... cont...

> Payday loan ban denies freedom to consumers ... April 1, 2008
GREELEY, CO -- Colorado lawmakers are considering legislation to cap the annual interest rate that can be charged on small consumer loans -- typically called "payday loans." The proposed legislation will effectively end payday lending in the state and financially harm many Coloradans by denying them access to credit. This "nanny state" legislation deprives all consumers the freedom to take out payday loans for the sake of protecting a few consumers who made irresponsible financial decisions... cont...

> Canadian Payday Loan Assoc. Welcomes New Ontario Legislation ... April 1, 2008
HAMILTON, ONT -- The Canadian Payday Loan Association (CPLA) today welcomed the introduction of important payday loan legislation by the Government of Ontario that will regulate the industry and balance consumer protection with a viable industry. The CPLA also disagreed with the Ontario Government's labeling of payday loan customers as the province's 'most vulnerable consumers... cont...

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