Another Payday Loan Company Shuts Down Operations in North Carolina
By J.J. CameronPayday Loan Writer
Advance America was the first to go.
Now it’s time for Check ‘n Go office (located in Statesville) to call it quits. In ordr to avoid further legal action from Attorney General Roy Cooper, who alleged the payday advance industry was inherently unfair, lenders in the state have been shutting down state.
“From a customer standpoint, they are going online or to another state,” said John Rabenold, a spokesman for Check ‘n Go. “It’s a net loss for the state of North Carolina. Roy Cooper has never come to our store, but the customers do every day, and they have always expressed appreciation for our services.”
The company had 65 offices in North Carolina - and there’s a good chance these customers are not just crossing the border for South Carolina payday loans.
Elsehwere, employees are still working at the First American Cash Advance office on Venture Lane. Spokesman Bob Manning said:
“It is the company’s intent to continue to operate its store locations in North Carolina during this transition period and will now offer limited products to its customer base under existing North Carolina laws.”
The company is trying to get relicensed to operate as a consumer finance lender.
Manning said the company is working with N.C. lawmakers to develop new laws for financial services to continue to serve people who “historically have been ignored by traditional financial institutions.”
Check Into Cash, Check ‘n Go and First American Cash Advance signed agreements on March 1 saying they would stop making payday loans and stop collecting interest and fees on existing loans.
The companies agreed to pay $700,000 to consumer credit counseling organizations across the state to help consumers that have been affected by the loans. Bruce Hamlett, director of economic independence of United Family Services, sees this as a step in the right direction.
His organization will receive $65,000 from the settlement to help with consumer debt education programs.
“We are very pleased that these folks are closing up shop,” Hamlett said.
Hamlett said his organization will use the settlement money to increase educational opportunities in an effort to help people avoid spending beyond their means.
“In general, we are seeing an ever-increasing rise in consumer debt, not just in payday loans but also credit card balances,” Hamlett said. “Personal finances continue to be headed in the wrong direction.”
March 20th, 2006 at 3:43 pm
[…] John Rabenold, spokesman for the second-largest payday lender in the nation, Mason-based Check ‘n Go, said the company opposes the bill. He said Check ‘n Go has 55 stores in Ohio. […]
March 20th, 2006 at 3:46 pm
[…] The former North Carolina senator urged Iowa leaders to use their pulpit to urge traditional lenders to better serve lower and middle-income families so they aren’t turning to car-title or payday loans. He cited organization his home state for making progress in this regard… and curbing the proliferation of North Carolina payday advance lending. […]
April 12th, 2006 at 2:01 pm
[…] Emory sits on the Labor, Commerce and Industry committee, which would consider any payday legislation. He said the recent departure of the last payday lenders from North Carolina had moved the issue “onto the front burner.” […]
April 12th, 2006 at 2:05 pm
[…] Advance America has recently shut down 117 North Carolina payday loan stores and 101 in Pennsylvania, in addition to its 30 stores in Arkansas. […]
May 24th, 2006 at 1:42 pm
[…] The N.C. Banking Commission voted unanimously this morning to uphold a ruling that forced the payday advance lending industry to leave the state. Advance America had already closed its stores in anticipation of December's ruling outlawing payday loans from the area. […]