Business Services Industry
Dollar Financial Corp Comments on New Legislation in Ohio
Business Wire, May 15, 2008
BERWYN, Pa. -- Dollar Financial Corp (NASDAQ:DLLR), a leading international financial services company serving under-banked consumers, commented today on the vote by Ohio legislators on May 14, 2008 to effectively ban payday lending in Ohio. The bill, HB 545, passed the House two weeks ago and places a 28% annual percentage rate cap on payday loans, reducing the allowable fees from $15 to $1.08 per $100 borrowed for a two-week period.
Jeff Weiss, the Company's Chairman and Chief Executive Officer, said, "Though we are generally supportive of sensible regulation which helps to create a fair marketplace, this decision by the Ohio Senate is an exception as the new law significantly hurts our Ohio-based customers by eliminating access to a short-term credit product This legislation denies consumers a cost effective choice for their short term credit needs and will force them into costlier bank fees and unregulated lending."
Mr. Weiss continued, "From a business standpoint, this legislation will have minimal impact to our operations. Our total net fees from consumer lending revenue in our 21 multi-product stores in Ohio were approximately $584,000 for the third quarter of Fiscal 2008 which ended March 31, 2008, or less than 1% of our total consumer lending revenue. That said, we will continue to evaluate our strategy in Ohio on an ongoing basis, and continue to work with our customers, legislators, and other industry members to ensure that our customers have access to short-term credit solutions. Our product offerings are highly diverse and we will continue to provide a variety of alternative products such as check cashing, bill pay, Western Union services, and pre-paid debit cards."
About Dollar Financial Corp
Dollar Financial Corp is a leading international financial services company serving under-banked consumers. Its customers are typically service sector individuals who require basic financial services but, for reasons of convenience and accessibility, purchase some or all of their financial services from the Company rather than from banks and other financial institutions. To meet the needs of these customers, the Company provides a range of consumer financial products and services primarily consisting of check cashing, short-term consumer loans, Western Union money order and money transfer products, reloadable VISA[R] and MasterCard[R] branded debit cards, electronic tax filing, bill payment services, and legal document processing services.
At March 31, 2008, the Company's global store network consisted of 1,454 stores, including 1,111 company-operated financial services stores and 343 franchised and agent locations in 32 states, Canada and the United Kingdom. The financial services store network is the largest network of its kind in each of Canada and the United Kingdom and the second-largest network of its kind in the United States. The Company's customers, many of whom receive income on an irregular basis or from multiple employers, are drawn to the convenient neighborhood locations, extended operating hours and high-quality customer service. The Company's financial products and services, principally check cashing and short-term consumer loan programs, provide immediate access to cash for living expenses or other needs. For more information, please visit the Company's website at www.dfg.com.
Forward Looking Statement
This news release contains forward looking statements, including statements regarding the following: the Company's future results, growth, guidance and operating strategy; the global economy; the developing regulatory environment in Canada and the United States; the impact of future development strategy, new stores and acquisitions; and of the performance of new products and services. These forward looking statements involve risks and uncertainties, including uncertainties related to the effects of changes in the value of the U.S. dollar compared to foreign currencies, risks related to the regulatory environment, current and potential future litigation, the integration and performance of acquired stores, the performance of new stores, the implementation and results of restructuring initiatives, the impact of debt financing transactions, the results of certain ongoing income tax appeals, and the effects of new products and services on the Company's business, results of operations, financial condition, prospects and guidance. There can be no assurance that the Company will attain its expected results, successfully integrate any of its acquisitions, attain its published guidance metrics, or that ongoing and potential future litigation or that the various FDIC, Federal, state, Canadian or foreign legislative or regulatory activities affecting the Company or the banks with which the Company does business will not negatively impact the Company's operations. A more complete description of these and other risks, uncertainties and assumptions is included in the Company's filings with the Securities and Exchange Commission, including those described under the heading "Risk Factors" in Form S-3 for the Company's Senior Convertible Note offering filed with the SEC on September 20, 2007 and its fiscal 2007 annual report on Form-10K. You should not place any undue reliance on any forward-looking statements. We disclaim any obligation to update any such factors or to publicly announce results of any revisions to any of the forward-looking statements contained herein to reflect future events or developments.
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