Advance America announced their chairman and co-founder, George Johnson, stepped down for personal reasons.
Advance America was founded in 1997 and currently is operating approximately 2800 loan centers in not only the USA but additionally in Canada and England.
William (Billy) Webster who is also a co-founder will replace Johnson.
The scuttlebutt is that Johnson resigned after the company posted a 4% profit loss in the first six months of the year. Others in the industry discount this assessment.
There is little doubt the payday loan industry is under attack as is the mortgage industry, the credit card industry, the banking industry, the oil industry, and others. It’s been noted elsewhere that when the US economy experiences a slowdown the regulators and
competitors, under the guise of consumer protection, attack our industry more vociferously than ever.
Ultimately the payday loan industry is driven by consumer demand; consumers have a huge demand for small loans that are easily obtained with a minimum of hassle. That describes the payday loan product!
Bottom line, when the car requires repair, or the lights are about to be turned off, or you need cash to pay for a presciption, or, or, or… The payday loan product fills the need. And it has certainly been proven that a $15 fee per $100 loaned is still a better deal than bounced check charges or overdraft fees.Why Banks Hate Payday Loans
It should be noted that even in states/provinces not having payday loan physical locations, consumers by the tens of thousands apply for and receive funds via the Internet or call centers! Many of these businesses are offshore. Regulators, legislators and competitors (so-called consumer protectionists) are forcing payday loan consumers into the hands of the offshore companies. Domestic payday loan companies welcome regulation as long as they are allowed to continue to operate at a reasonable profit under any proposed legislation.