To say that the Virgina payday loan business is booming would be an understatement.

According to data released by state banking regulators last week, the industry of payday loans in Virgina has surpassed $1 billion. The lending volume jumped 21.5 percent to $1.2 billion, while the number of borrowers climbed 15 percent to almost a half-million individuals in 2005, the state’s Bureau of Financial Institutions said in its annual report of payday loan lenders and check cashers.

In the state, lenders are allowed to charge $15 for every $100 of a quick payday loan, which works out to an annual percentage rate of 390 percent for the typical two-week loan. The maximum amount of a loan is $500; the maximum length of a loan is four weeks.

Data in the Bureau of Financial Institutions’ report are likely to spur efforts already under way to curb or eliminate payday loans in Virginia. The growth of payday loan lending and the financial difficulties of their users have been contentious issues in the General Assembly in recent years.

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QC Holdings Inc., recently announced its first-quarter profits and news was not idea. The company, which provides cash loans from 549 branches in 25 states, pointed to higher costs on the company's 18 new branches as a factor for the slight decline in profits.

Numbers fell to $2.5 million (or 12 cents per share) from $3.6 million (or 15 cents per share) a year ago.The company reported a 15 percent increase in revenue to $38.4 million from $33.5 million, primarily from the increase in quarter-to-quarter unit branch count. The results missed the expectations of Wall Street analysts, who predicted 13 cents per share on revenue of $41 million, according to a Thomson Financial poll.

The decline in income was from higher costs during the current quarter to accommodate the large number of newer instant payday loan branches, the company said. During the first quarter, the company opened 18 new branches and closed one.

Looking ahead, the company said a challenging operating environment in Illinois - which includes new payday loan legislation - will reduce the company's profit by about $1.5 million to $2 million in each of the year's remaining quarters.

The Arizona State Legislature overwhelmingly passed payday loan reform last week and governor signed it into law. But this is no cause for celebration, writes columnist Jim Kiser in the Arizona Daily Star. The only reason this piece of legislation is better than no bill is one provision that contains a small amount of value.

The benefits, however, apply only to members of the military. The majority of borrowers are ignored by its passage.

That is the bad news, but it gets worse yet. This bill allows legislators to claim non-existent win — something particularly important in an election year, especially when it pertains to the military.

Here is the sad reality: Some legislators may have deluded themselves into believing they passed a noteworthy bill. They likely would wash their hands of any future efforts to rein in companies that prey on vulnerable citizens with high-interest payday loan online offers.

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As a well-known provider of tax software and electronic filing, TRE Financial Services Inc., just announced the availability of TurboCash, a short-term lending solution. What's the purpose of this technology?

It's designed to give credit unions a competitive advantage in the short-term loan market, as well as to provide protection for their members from the escalating debt trap of retail payday loans.

TurboCash uses a proven software platform for quick loan processing and tracking, can be quickly integrated into a credit union's portfolio of member services, and supports the original charter of the Federal Credit Union Act to make credit available and promote thrift through a national system of nonprofit, cooperative credit unions.

Over the last fifteen years, online payday loans have become a $50-billion-a-year industry, with more than 10,000 payday loan outlets throughout the United States. Interest rates, however, can quickly reach an average annual percentage rate (APR) of over 600 percent, often trapping borrowers in a cycle of skyrocketing payoff amounts.

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Spartanburg, S.C., payday loan firm Advance America, which experienced a modest decline in revenue last year, reported strong first-quarter growth in both revenue and profit last week. During the first fiscal quarter, the company's 2,640 stores generated $152.2 million in revenue, up 10 percent from the same period in 2005.

The 42 new stores that the corporation opened during the quarter, as well as the growth of its existing stores, were responsible for the growth.

Gross profits rose 9.2 percent, to $50.1 million, while net income was $20.4 million, compared to the $19.7 million earned during the same period a year ago.

"In general, it was a very good quarter for us," said CFO John Hill.

Revenues would have been even higher if not for legislative and regulatory issues in some areas, the company said. During the last quarter, Illinois and Indiana instituted databases to track customers and limit payday loan use. Advance America suspended operations in Arkansas and Pennsylvania, two states in which the company had partnered with federally chartered banks to offer cash loans.

Hill said that Advance America is working on alternative business models so that it can resume issuing loans in the two states. Similar situations have been encountered Texas and Michigan during the past year, and the company altered its models in order to keep its faxless payday loans legitimate. Advance America also wants to take its product offerings up a notch and issue loans on a grander scale.

Currently a "monoline" payday company, meaning it offers only loans to customers, it is looking into options that it might offer alongside the payday loans. As the quick cash loan industry matures, growth will slow and diversification will be the way to boost revenue.

In 2003, the company test-marketed a tax return/tax refund loan service, and also tried offering online payday loans. At that time, business was growing so rapidly Advance America decided to pull back and focus only on its core business. Now executives feel that the time is right to explore its options more seriously.

Marty Jo Brave Bull’s truck was running on fumes, and she didn’t have the money to fill it up with gas. So she pulled into Quik Cash, a storefront at 1401 W. Sixth St., in Lawrence, Kansas.

It’s a scene that plays out across the state and the nation at an alarming rate, with a growing number of payday cash advance providers promising quick, short-term loans to get people through to their next paycheck. Industry critics say the fees are unreasonable, and that the companies exploit people who already are in financial trouble.

But the payday loan providers themselves say they’re simply filling a need, and that most customers are moderate in their borrowing habits.

“We don’t intend to offer these products in a parental kind of way. We trust our customers to make their own financial decisions. We don’t want to baby-sit them. We want to serve their financial needs,” said Tom Linafelt, a spokesman for Overland Park-based QC Holdings.

Matt P., a 31-year-old Lawrence man speaking under the condition that his last name not be used, is a prime example of how the payday loan industry can go wrong. He first used such a lender in 1999.

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According to lead generator, Leadpile.com, consumers can look forward to an historic year for online payday loans.

Sales for the remainder of 2006 will continue to climb, the service reports. Why travel to a brick and mortar location whtn people demand a fast, easy, and efficient marketplace to receive their cash loans?

Andy Jacob, CEO of Leadpile.com says: “Our survey shows that there will continue to be a very competitive atmosphere for payday loan providers on the Internet. It will be a race to the finish line for payday advance providers who can provide the most efficient processes for online payday loans.”

While alternatives to payday loans are being discussed and hitting the market, it's still difficult to find an easier way to receive cash overnight. This can help to pay off debts.