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Payday lender to close Oregon stores
Thursday, September 27, 2007 | 1 comment(s)
PORTLAND (AP) — Payday lender Advance America, Cash Advance Centers Inc., said it is closing its stores in Oregon because it is no longer economically viable to operate in the state.
Advance is the latest of multiple payday loan outfits to close their doors since the state imposed a 36-percent annual interest rate cap and other regulations on the short-term, high-rate consumer loans.
The new laws took effect in July and allow payday and car title lenders to charge a $10 origination fee per $100 loaned, though no more than $30 for a loan of any amount.
Loans must be for at least 31 days and can carry an annual interest rate of 36 percent. Fees included, lenders can charge the equivalent of an annual interest rate of about 154 percent for a 31-day loan — far less than the 500 percent rates common before the law took effect.
Calls to the local Advance America office in Coos Bay were referred to a media number to which no one answered and no message could be left.
Advance, which is based in Spartansburg, S.C., said its Oregon centers have generated no gross profit for the six months ended June 30.
The company said it planned to write off most of the value of its receivables in Oregon, about $10.8 million.
Advance is the latest of multiple payday loan outfits to close their doors since the state imposed a 36-percent annual interest rate cap and other regulations on the short-term, high-rate consumer loans.
The new laws took effect in July and allow payday and car title lenders to charge a $10 origination fee per $100 loaned, though no more than $30 for a loan of any amount.
Loans must be for at least 31 days and can carry an annual interest rate of 36 percent. Fees included, lenders can charge the equivalent of an annual interest rate of about 154 percent for a 31-day loan — far less than the 500 percent rates common before the law took effect.
Calls to the local Advance America office in Coos Bay were referred to a media number to which no one answered and no message could be left.
Advance, which is based in Spartansburg, S.C., said its Oregon centers have generated no gross profit for the six months ended June 30.
The company said it planned to write off most of the value of its receivables in Oregon, about $10.8 million.
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