Industry News
Credit union sign

Credit unions enter the payday loan business

Credit Unions, which are generally considered more trustworthy than traditional banks, are more and more frequently offering short term loans that rival payday loans in many aspects. This change comes in response to new federal guidelines. Many analysts find this trend disturbing, while others see it as offering credit union members more options. Many find
A screenshot of, Pawn America's website. It is divided into easily to navigate sections, including their eBay store.

Pawn America | Bringing value to every customer

During this recession, pawn shop companies like Pawn America (See have provided a valuable service for cash-strapped consumers. Secured loans in exchange for collateral property have been a popular service for hundreds of years, but companies like Pawn America have got it down to a science. As they state on their website, they see themselves as
Payday loan store

Virginia working to reduce use of payday and car title loans

The state of Virginia has been on the front lines of regulating short term loan lenders like payday loan and car title loan companies in attempt to reduce their use. Both consumer finance products have been subject to stricter legislation that has dramatically reduced the use of such products. Car title loan lenders operating without
Credit report

Selling credit reports to payday lenders gets Teletrack fined

Credit reporting agency Teletrack, which specializes in subprime credit reports, has been fined by the FTC for selling credit reports illegally. The agency was found to have sold credit reports to payday loan lenders and has to pay $1.8 million in fines to the Federal Trade Commission. Company cited for selling credit reports for marketing
Chris Dodd

New rules on credit scores taking effect this year

There are a new set of rules taking effect this year concerning credit scores. The financial reform bill, or the Dodd Frank financial reform act, changed federal laws regarding reporting of credit scores. If a person is applying for any large loans in the future, these are good things to know. Change in credit scores
an old bank vault door with a person standing in it

FDIC payday loan alternative program helps banks try to compete

A pilot program designed for banks to provide alternatives to payday loans has been developed by the Federal Deposit Insurance Corporation (FDIC). The FDIC issued a report June 24 about the final results of the small dollar loan pilot program launched in 2008. The program was deemed a success. However, the number of loans made

Crime and cash advances have nothing to do with each other

Claims have been made that when lenders offering cash advances move into an area, crime is sure to follow. There have been many problems throughout history attributed to things that have nothing to do with them. For instance, crime used to be blamed on people drinking alcohol. When Prohibition went into effect, violent crime increased
Ghost town

Advance America stock tumbles after store closures

After the Arizona ban on payday lending went into effect, and new legislation is being passed in Colorado, Advance America announced it was closing more than 100 store locations nationwide.  One of the nation’s largest payday lenders, and one of the few that grew large enough to be publicly traded, is shutting down 122 stores
A padlock with the NFL logo Photoshopped on.

NFL lockout loans: More money, more problems

The average consumer-level same day loan comes with a 15 to 25 percent fee per $100 loaned. Considering the relatively small dollar amount of these instant payday loans, the fee generally doesn’t break the bank. However, the 2011 NFL lockout has given rise to high-dollar variation of such loans, which the media has dubbed “lockout

Reno microlending program targets unbankable businesses

The Rural Nevada Development Corp. is kicking off a new “microlending” program. The U.S. Department of Agriculture-funded program targets businesses that couldn’t otherwise qualify for loans. One-fifth of the money has already been handed out. Reno, Nevada, rural development loans A $500,000 grant from the U.S. Department of Agriculture is funding a new “microlending” program.
Tax preparation

Loss of refund cash advance product cuts H&R Block revenues

The loss of the ability to offer a cash advance against tax refunds has caused revenues to fall for tax preparation giant H&R Block. The latest earnings reports for the company indicate that revenues so far are less than expected this tax season. Earlier this year, the company was forced to abandon refund anticipation loans
Storefront of a payday loan lender

Payday lenders thriving despite regulatory climate

Despite an increasingly hostile regulatory climate, payday lenders are finding ways to thrive. Payday loan legislation is constantly changing as states waffle on banning or allowing the credit product, but the largest firms are still doing well. Overseas expansion and increasingly diverse product offerings are helping publicly traded payday loan businesses to grow. Largest payday
Virginia Senate

Virginia opening up short-term lending to non-residents

In Virginia, short-term title lending is about to receive a boon. A new bill signed into law Monday will allow lenders in the state to offer their products to non-residents. The bill is specifically targeted toward increasing business for Virginia lenders. Virginia title lending Senate Bill 1367 in Virginia passed the Virginia Senate easily and
Check cashing

Retail stores branching out into alternative financial services

Giant retail store chains have begun branching out into the world of alternative financial services. Store chains such as Walmart, Kmart and Best Buy have started offering financial services to unbanked customers — those without bank accounts. Almost 20 percent of Americans do not have a bank account. Alternative financial services at retail stores Large
underbanked online lending

Ex-Google exec founds ZestCash, online lender to the underbanked

ZestCash is a new online lending operation to serve the underbanked launched by a former executive of Google. ZestCash online loans of up to $500 became available in Utah starting Wednesday. The company said it will use data, Google-style, to minimize risk and maximize benefits for its customers. A new way of online lending ZestCash
Tattoo of dog

Company offers payday loans in exchange for tattooing pets

In this stagnant economy, an entrepreneur has found a new way to make money. Antonio Smith’s Atlanta-based company Tasq Media Advertising is offering an alternative to payday loans. In exchange for a short-term loans, borrowers agree to let the company tattoo logos onto their pets. Permanent logos on your pet To ease that steady burden