Dollar Financial Group

Posted by Online-Payday-Loans.org on Mar 15, 2007 in Proponent, Quotes

“Despite the demand for basic financial services, access to banks has become more difficult over time for many consumers. Many banks have chosen to close their less profitable or lower-traffic locations. Typically, these closings have occurred in lower-income neighborhoods where the branches have failed to attract a sufficient base of customer deposits. This trend has resulted in fewer convenient alternatives for basic financial services in many neighborhoods. Many banks have also reduced or eliminated some services that under-banked consumers need.”

According to Dollar Financial Group’s 10-K filing, demand for payday loans has increased because traditional financial institutions have turned their backs on lower-income neighborhoods…

Dollar Financial Group also believes that the number of payday loan consumers will increase as banks reduce their small loan services:

“We believe that the under-banked consumer market will continue to grow as a result of a diminishing supply of competing banking services…”

The Dollar Financial Group operates 1,250 store locations in 34 states, the District of Columbia, Canada and the United Kingdom including Money Mart, The Money Shop and Loan Mart.

Source: Dollar Financial Group Inc. 10-K For 6/30/06 (United States Securities and Exchange Commission)

Federal Deposit Insurance Corporation (FDIC) chairman Sheila C. Bair believes that banks have the ability to offer short-term loans more efficiently than payday lenders but many choose not to because it would cannibalize the profits they make off of bounced check protection.

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