Friday, November 21, 2008

Check Into Cash to Close 32 Ohio Stores

Payday lender Check Into Cash announced today that it is closing 32 of its 92 stores in Ohio. The closings follow recently passed legislation that caps interest rates at 28 percent, making it impossible for the company to continue current operations.

The 60 stores that remain open are offering micro loans under the Ohio Small Loan Act. "We're making an effort to continue serving our customers," said Check Into Cash President Steve Scoggins. "While the federal government understands the importance of providing access to credit as it's doing with the bailout," notes Scoggins, "Ohio legislators insisted on eliminating credit access for its citizens.

In addition, this is putting thousands out of work during a serious economic crisis."
Ohioans are likely to experience what Federal Reserve researchers Donald Morgan and Michael Strain learned about Georgia and North Carolina after payday lending was eliminated. Their study showed that customers bounced more checks, filed for Chapter 7 (no assets) bankruptcy more often and registered more complaints with the FTC. Consumers were also forced to use more expensive credit options when payday loans weren't available.

Approximately 45 employees will lose their jobs early next month when the store closings go into effect. Some 47,500 square feet of retail space will now go dark as the 32 locations in cities and towns across the state are vacated.

Scoggins declined to say whether additional Ohio locations may be shuttered in the future. "We're doing the best we can to meet the needs of our customers and at the same time trying to keep the lights on," he explained.

Check Into Cash, headquartered in Cleveland, TN, is a founding member of the Community Financial Services Association, an industry trade group of responsible lenders dedicated to promoting balanced legislation and consumer protection while preserving credit options. Founded in 1993, Check Into Cash has 1254 centers in 32 states, and is the nation's largest privately held payday advance company.

Source from:
http://www.marketwatch.com/news/story/Check-Into-Cash-Close-32/story.aspx?guid={9A12C127-EBC3-437D-94D9-0688D01E2FAF}

Friday, November 14, 2008

Hampden Bank recovers cash on impaired loan

Hampden Bancorp Inc. said it recovered $621,000 in cash on a loan it had classified as impaired, cutting its portfolio of nonperforming loans, according to a recent regulatory filing.

Hampden said it recently received the cash payment, a move that cut its impaired loans by $364,000 and resulted in a $257,000 loan-loss recovery.

In the third quarter, the bank’s net income was $47,000, compared with $521,000 for the same period in 2007. This decrease in net income was primarily the result of setting aside more money for anticipated loan losses, the bank said.


Source from:
http://www.bizjournals.com/boston/stories/2008/11/10/daily37.html