Dollar Financial Expands Canadian Payday Loan Business; Adds $16.8M in Revenue
By Desmond CarlislePayday Loan Writer
The Dollar Financial Group has acquired 11 payday loan stores in western Canada and will soon complete deals for two more in the region, the Philadelphia Business Journal said Monday.
National Money Mart (Dollar’s Canadian subsidiary), which had minority ownership in seven stores.
The acquisition is valued at an estimated $16.8 million in addition to a portion of the loan portfolio, liquid assets, and other items.
Dollar Financial, headquartered in Berwyn, Pa., now operates 1,340 stores in 36 states, the District of Columbia, Canada and the United Kingdom. The locations offer check-cashing, short-term payday loans, money orders and other services.
The Federal Deposit Insurance Corp. (FDIC) expressed concern last month over Dollar’s “CustomCash” payday loans and installment loans. The FDIC has been subjecting lenders and partnering banks to closer scrutiny recently, with some companies in some states (such as North Carolina) deciding to stop making payday loans.
If the FDIC takes action that will decrease the company’s CustomCash revenue, Dollar has said it will pursue alternatives to mitigate the potential future loss of revenue. This may include company-funded payday loans that are regulated under prevailing state laws and can be just as easily distributed to the prospective customers.
The Pennsylvania payday loan giant does not appear to be deterred by the recent backlash against its Canadian subsidiary and other industry operations. It will be interesting to see if this acquisition helps boost the revenue of an already thriving enterprise.
