Advance America to re-think business model in two states

[upstateplanet]

Spartanburg-based Advance America may leave Pennsylvania, Arkansas

Personally, I think cash-advance "loan" places are insidious businesses that pray on the poor & downtrodden. It's a shame one of the largest is based right here.

[Spartan]

I agree. I mean, I'm glad to have the HQ & jobs, but I also detest those types of businesses. They are horrible places that feed off of the ignorant.

[goodbye]

I totally agree that these kind of businesses are up to no good. People should have better common sense than to resort to the "services" of these companies though. Why Spartanburg, I wonder. Probably a prime target for business.

[GSP Tiger]

This cash advance industry is ridiculous. If people need to get their checks cashed, they should make use of their financial instistution or supermarkets that allow check cashing. It is unfortunate that our state legislature has taken no action to end this industry in South Carolina.

[Spartan]

I think that Spartanburg is the HQ because George Johnson started it. I could be wrong about that. That is also why ESA is HQ'ed in Spartanburg.

[goodbye]

I know this won't happen in Spartanburg, but it would be great if the people became one voice to boot the company out of town. Maybe counterproductive to some, but in the end, it would probably become the best overall decision.

[Spartan]

That wont happen anywhere.

[emo]

I hate these type of businesses too and I hate to see the effects of them.

Why Spartanburg, I wonder. Probably a prime target for business.

I must also say that your response offends me somewhat. I mean, it sounds like you're saying Spartanburg's population doesn't know any better. Anyway I don't think that Spartanburg is any more a target location than any other city.

[willum]

The magazine I used to work for (well the owner of it) also had a cash advance/cash checking place. And you want to know why they are so popular? Probably the biggest customers over there were Mexican (I'm not being racist) and my guess is because they can't get an account at a bank, or prefer to remain anonymous and not do it. Even BP has gotten into cash advance with their $20 "credit card" deal. It is a shame that our country is SOOO dependent on credit. If this tells you anything about the type of customers who go there, the wall/glass/door in front of the counter was totally bulletproof even after repeated shots, there were several cameras, one at each window would take your picture (without you knowing it or seeing the camera) and match you in a computer and log your use of the store. Most people who use it I would say use it as a very last means of cash, but I don't know myself...

[SpartanTS]

That wont happen anywhere.

And for good reason.

Advance America isn't any different than any other company out there. They provide a service to make money. Some people can't get bank account for citizenship reason, credit, etc. Wachovia did a hard pull on my credit to open an account with them, so i'm sure all banks do this now.

There will always be a need for these types of businesses. So they won't be going anywhere.

[roads-scholar]

Some of you folks are terribly naive! Try to cash your check at a bank other than your own. Try walking into BI-LO on a Friday afternoon and ask them to cash your hard-earned paycheck. Try to get a loan without any credit history or without daddy's cosignature. Try walking to a bank when you don't have a car and the bank is ten miles away. Try to get a loan if you've lost your job or defaulted on a credit card payment. If you're black or brown try walking into a bank. As far a the bank is concerned, you're there either to hold them up or mop the floors.

Some of the people out there who use these services are not "ignorant" or "downtrodden". Some of these people make minimum wage (or less) and have nowhere else to turn.

Advance America is not the first, nor will they be the last company, good intentions or not, to take advantage of situations like this. Not to sound like I'm defending them but at least Mr. Johnson's intentions with Advance America is to bring a solid financial foundation to this type of business and run it with a professional management team as opposed to the unscrupulous guys who sit in yellow buildings with flashing neon lights!

[upstateplanet]

Advance America is not the first, nor will they be the last company, good intentions or not, to take advantage of situations like this. Not to sound like I'm defending them but at least Mr. Johnson's intentions with Advance America is to bring a solid financial foundation to this type of business and run it with a professional management team as opposed to the unscrupulous guys who sit in yellow buildings with flashing neon lights!

While I won't waste time pointing out your contradiction, I will say that these predators (and that's what they are, make no mistake) charge anywhere from 60% to 300% interest. That's right, do the math. In that regard, there's no differrence between the loud "neon" types, and those who masquerade as "solid" financiers. Why else are they being forced out of two states?

[willum]

and a casino squanders people out of money. it costs what $3 for a coke at carowinds? it's the nature of business, they can charge that kind of interest because people are willing to pay it.

[upstateplanet]

it's the nature of business, they can charge that kind of interest because people are willing to pay it.

Does that make it right? Why else are AR & PA forcing them to change.....if it's "ok"?

[jaxpalmer]

i did notice a massive influx of these cash advance places while i was living in the spartanburg area. Seems there was one everywhere you looked.

[GMoxley]

One argument in support of these "cash advance" businesses: they provide a service that people otherwise would have to turn to the black market for. The people who use the Cash Advance businesses for one reason or another, do not feel comfortable using or do not have access to traditional banking services. And without these legitimate cash advance businesses, a lot of people would turn to the underground loan businesses where they break your leg for not paying your debt.

I see it as a trade-off; by allowing legitimate cash advance businesses, we protect people from the evils they would face in an underground market, but expose them extremely high interest rates.

Also, the reason why these businesses charge a high interest rates on the loans is that there is a high rate of default on the loans. They assess the risk of loaning to these people, and charge interest accordingly.

[willum]

Also, the reason why these businesses charge a high interest rates on the loans is that there is a high rate of default on the loans. They assess the risk of loaning to these people, and charge interest accordingly.

Exactly. I'm not saying the business is "ok" in whatever sense... I do think it's ok to have such a business, however I do agree it should be regulated. By saying people are willing to pay it, I'm not saying that makes it ok per se. But there's no illegality in people paying a high interest rate. Would you believe lots of people pay 25-30% interest on an auto loan? Not everyone is in a good comfortable place financially or credit-wise

[krazeeboi]

I know that Advance America was ousted from NC, where it was that state's largest pay day loan company. It was charging upwards of 400% in interest, which was illegal according to state law.

I did hear, however, that some of these types of companies would consider reporting transactions to credit agencies as a way to boost the credit of customers who pay their loans off on time.

[krazeeboi]

Here's an article in The State about many NC residents choosing to conduct pay-day loan business in SC.

It seems like we always find some kind of way to make money off North Carolinians, honorable or not.