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Concerns Arise Over Payday Loans From Dollar Financial Corp.

Filed under: Pennsylvania — J.J. Cameron at 10:40 am on Wednesday, February 22, 2006

The Federal Deposit Insurance Corp. isn't happy. In examining the state of payday loans in Pennsylvania, the company has expressed concerns with certain practices.

Specifically, Dollar Financial said it has learned that the FDIC would like to meet with it regarding its dealings with payday advances. Located in Berwyn, Dollar is a leading international financial services company that offers a range of consumer financial products to its customers. This includes online payday loan offers.
Across the globe, Dollar operates 1,329 stores in 36 states, the District of Columbia, Canada and the United Kingdom that offer check-cashing, short-term customer loans, money orders and bill-payment and other services.

If the FDIC takes action that will decrease the company's CustomCash revenue, Dollar said, it will "pursue other alternatives to mitigate the potential future loss of revenue, including offering company-funded payday loans that are regulated under prevailing state laws to the affected customers."

2 Comments »

28

Pingback by Payday Loan Times » Blog Archive » First Bank of Delaware Puts End to Payday Loans

Thursday, February 23, 2006 @ 11:14 am

[...] In a brief statement released late Tuesday, First Bank of Delaware acknowledged that the Federal Deposit Insurance Corp. had ordered the bank to stop its payday-lending involvement, unless the bank could fix unspecified problems with oversight of the lending. As a result of the regulatory pressure, the bank said it has decided to stop payday lending “in a time period that has yet to be determined.�? [...]

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Pingback by Payday Loan Times » Blog Archive » Advance America Posts 7.1 Percent Revenue Growth; Net Income Down Slightly From 2004

Thursday, February 23, 2006 @ 11:25 am

[...] The Federal Deposit Insurance Corp. issued new guidance that led Advance America to adopt a different business model in North Carolina, Texas, Michigan, Arkansas and Pennsylvania. In those states, Advance America has switched to offering installment loans, which are easier for borrowers to pay back, and not as profitable as the regular payday advances issued by the agency. « First Bank of Delaware Puts End to Payday Loans [...]

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