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Sitrade Italia-Spa Recognized as Fastest Growing Cash Handling Equipment Manufacturer



In the fourth segment, the market size data of the 80 largest manufacturers of cash handling equipments in the world are compared.

Albany, NewYork (PRWEB) February 11, 2015

ResearchMoz has announced the addition of a new market study that offers an analysis of the cash handling equipment manufacturers worldwide. The research report, titled “Cash Handling Equipment Manufacturers (Global) – Industry Report”, offers an analytical report with a detailed study of 140 major manufacturers of cash handling equipment across the global cash handling equipment market, including their market strategies and their penetration level in the global cash handling equipment market.

Read The Full Report With TOC @

Cash handling is the procedure of dispensing, tracking, and counting cash in a bank, cheque en-cashing, payday loan/advance, retail, casinos, and other business environments through specially designed software and hardware to prevent losses, theft, and to reduce management time for errors in cash drawer operations. Cash handling equipment include automatic teller machine (ATM), cash dispenser, cash validator, cash recycler, loose coin validator, rolled coin dispenser, and intelligent banknote neutralization system.

This research report on cash handling equipment manufacturers across the world is categorized into various sections and contains both written and graphical information of the global cash handling equipment manufacturers, all of it updated exhaustively.

The first section presents a thorough study on the global cash handling equipment market. This segment consists of manufacturers that are the leaders in the market in both sales as well as financial might. Ingenico GmbH has been ranked as the best trading partner in the global cash handling equipment industry.

The second section analyzes the sales growth and reviews the fastest developing and fastest shrinking manufacturers among the 140 key cash handling equipment manufacturers across the globe. Sitrade Italia-Spa is one of the fastest developing cash handling equipment manufacturers in the world.

The third section evaluates the gross and pre-tax profit statistics over the past ten years. In this section, a profitability synopsis is presented by comparing profits in the global cash handling equipment industry against small, medium, and large cash handling equipment manufacturers over the world.

Request A Sample The Report @

In the fourth segment, the market size data of the 80 largest manufacturers of cash handling equipments in the world are compared. This comparison is carried on the basis of the previous year’s market size and the most recent figure.

Among the next two segments, the first one ranks the top 50 cash handling equipment manufacturers on the basis of their market share, growth rate in sales, and gross and pre-tax profit. The other one determines the best performing cash handling equipment manufacturers according to their strong financial conditions and outstanding sales growth rates during 2014.

The last segment focuses on profile analysis of companies and provides a comprehensive study of the largest global cash handling equipment manufacturers within the industry.

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URB hearings target payday loan services in Nova Scotia

Nova Scotia’s payday loan industry could be in for an overhaul as the provincial Utility and Review Board gears up for public hearings next month.

Among the issues to be discussed is whether restrictions should be placed on repeat loan customers.

The board will also examine the maximum fee charged by the businesses, the maximum interest rate, which is now set at 60 per cent, and whether the Internet payday loan industry is adequately regulated in the province.

Board-appointed consumer advocate David Roberts said he would like to see the maximum fee of $25 per $100 borrowed reduced to be better aligned with that of other provinces.

Lenders in Manitoba, for instance, charge a maximum fee of $17 per $100, while Ontario lenders are permitted to charge up to $21 and companies in British Columbia, Alberta and Saskatchewan can charge up to $23.

“The primary issue remains the cost,” Roberts said.

“From my perspective, certainly, there is a need to justify the fact that we are the most expensive province in the country.

“The other issue has to do with repeat loans and whether there’s anything that can be done to either relieve people of some of the cost of repeat loans or to require breathing space between loans.”

In documents filed to the review board, the Canadian Payday Loan Association says the board should not change the maximum cost of borrowing.

It adds that “lenders are not making inordinate profits” and argues that the maximum fee charged on defaults should be raised from $40 to $45 to conform with fees charged by banks for invalid cheques.

The association’s president, Stan Keyes, said the costs associated with running a payday loan company are substantial, and reducing customer fees could prompt some stores to close, threatening the viability of the industry.

“Then that’s when the door opens for the unlicensed online lender to make their product available, which puts the consumer at a terrible risk,” Keyes said.

The association notes in its submission to the board that any attempt to restrict borrowers’ ability to take out repeat loans will not be effective.

“If you limit the number of loans a borrower can obtain from licensed lenders, the borrower will merely turn to unlicensed lenders to obtain credit,” the document says.

“That will only drive the market for the offshore unlicensed lenders. There is no consumer protection for borrowers who obtain loans from offshore unlicensed lenders.”

The association also takes issue with Nova Scotia’s requirement for lenders to have at least one brick-and-mortar outlet in the province, and to process requested transfers within one hour.

Those regulations “pose an obstacle to obtaining an Internet lending licence” and add to the proliferation of unlicensed Internet lenders, the group says.

Tim Houston, finance critic for the provincial Progressive Conservative Party, has requested intervener status at the hearing.

“We need to make sure that the people who use these loans are not being treated unfairly, so we just want to keep an eye on the process.”

While Houston won’t be lobbying for change one way or the other, he is concerned about the fees that lenders now charge.

“I’d be concerned about attempts to increase the rates. The fees that are being charged now I think, for the most part, seem to be pretty fair. I want to make sure there’s no undue increase.”

The hearings, set for Feb. 10 to 12, come after federal and provincial government officials accepted recommendations of a consumer measures committee to target repeat borrowing, to improve electronic tracking systems of loans and to begin a public awareness campaign about high-cost loans.


Alabama Payday Loan Database Still on Hold – WTVY

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MONTGOMERY, Ala. (AP) — A database to track payday loans in Alabama remains on hold because of a court fight.

The Montgomery Advertiser reports the system isn’t being implemented while the loan industry tries to block it.

The database is aimed at improving enforcement of a $500 limit on the amount of payday loans a person can have. But payday lenders sued Alabama’s Banking Department to block creation of the system last year.

A judge in Montgomery ruled against the industry in August and the industry appealed.

Banking Department attorney Elizabeth Bressler says the state hopes to have a final decision soon.

The state signed a contract with a Florida company to build the database, and legislators approve the deal earlier this month. But the work remains on hold because of the litigation.


Subprime boom ties loans to car titles

The title lenders are seizing upon a broad retrenchment among banks, which have become wary of making loans to borrowers on the fringe of the financial system. Regulations passed after the financial crisis have made it much more expensive for banks to make loans to all but the safest borrowers.

Read MoreRegulators press banks for more on auto loan exposure

The title lenders are also benefiting as state authorities restrict payday loans, effectively pushing payday lenders out of many states. While title loans share many of the same features — in some cases carrying rates that eclipse those on payday loans — they have so far escaped a similar crackdown.

In 21 states, car title lending is expressly permitted, with title lenders charging interest of up to 300 percent a year. In most other states, lenders can make loans with cars as collateral, but at lower interest rates.

Seeing the regulatory landscape shift, some of the country’s largest payday lenders are switching gears. When Arizona effectively outlawed payday loans, ACE Cash Express registered its payday loan storefronts in the state as car title lenders, state records show.

Lenders made similar changes in Virginia, where lawmakers outlawed payday lending in 2010. But title lenders were untouched by that law and have expanded throughout the state, drawing business from Maryland.

The number of stores offering title loans in Virginia increased by 24 percent from 2012 to 2013, according to state records. Last year, the lenders made 177,775 loans, up roughly 612 percent from 2010, when the state banned payday lending.

In Tennessee, the number of title lending stores increased by about 22 percent from 2011 to 2013, reaching 1,017.

That is a small fraction of the industry’s overall size, state regulators say, because only a handful of states keep statistics. Legal aid offices in Arizona, California, Georgia, Missouri, Texas and Virginia report that they have experienced an influx of clients who have run into trouble with the loans.

“The demand is there for people who are desperate for money,” said Jay Speer, the executive director of the Virginia Poverty Law Center.

Loopholes and Adversity

When Tiffany Capone suggested that her fiancé, Michael, take out a $10,000 TitleMax loan with a 119 percent interest rate, she figured it would be a temporary fix to pay the bills. But this summer, after Michael fell behind on the loan payments, the couple’s three-year-old Hyundai was repossessed.

“It had my child’s car seat in the back,” said Ms. Capone, of Olney, Md.

With their car gone, the couple had to sell most of their furniture and other belongings to a pawnshop so they could afford to pay for taxis to ferry Michael, a diabetic with a heart condition, to his frequent doctors’ appointments. The hardships caused by title loans are being cited as one of the big challenges facing poor and minority communities.

“It is a form of indenture,” said Robert Swearingen, a lawyer with Legal Services of Eastern Missouri, adding that “because of the threat of repossession, they can string you along for the rest of your life.”

Johanna Pimentel said she and both of her brothers had taken out multiple title loans.

“They are everywhere, like liquor stores,” she said.

Ms. Pimentel, 32, had moved her family out of Ferguson, Mo., to a higher-priced suburb of St. Louis that promised better schools. But after a divorce, her former husband moved out, and she had trouble paying her rent.

Ms. Pimentel took out a $3,461 title loan using her 2002 Suburban as collateral.

After falling behind, she woke up one morning last March to find that the car had been repossessed. Without it, she could not continue to run her day care business.

Pointing to such experiences, lawmakers in some states — regulating the industry largely falls to states — have called for stricter limits on title loans or outright bans.

In Virginia, lawmakers passed a bill in 2010 that institutes some restrictions on the practice, including preventing lenders from trying to collect money from customers once a car has been repossessed. That same year, Montana voters overwhelmingly backed a ballot initiative that capped rates on title loans at 36 percent.

But for every state where there has been a crackdown, there are more where the industry has mobilized to beat back regulations.

In Wisconsin, it took the title loan industry only one year to reverse a ban on the loans that had been put in place in 2010. In New Hampshire in 2008, state legislators enacted a law that put a 36 percent ceiling on the rates that title lenders could charge. Four years later, though, lobbyists for the industry won a repeal of the law.

“This is nothing but government-authorized loan sharking,” said Scott A. Surovell, a Virginia lawmaker who has proposed bills that would further rein in title lenders.

Even when there are restrictions, some lenders find creative ways to continue business as usual. In California, where the interest rates and fees that lenders can charge on loans for $2,500 or less are restricted, some lenders extend loans for just over that amount.

Sometimes the workarounds are more blatant.

The City of Austin allows title lenders to extend loans only for three months. But that did not stop Mr. Chicosky, the veteran who borrowed $4,000 for car repairs, from getting a loan for 24 months.

Last year, after applying for a loan at a Cash America store in Austin, Mr. Chicosky said, a store employee told him that he would have to fill out the paperwork and pick up his check in a nearby town. Mr. Chicosky’s lawyer, Amy Clark Kleinpeter, said the location switch appeared to be a way to get around the rules in Austin.

The lender offered a different explanation to Mr. Chicosky. “They told me that they didn’t have a printer at the Austin location that was big enough to print my check,” he said.


12 OYS: Payday loan users caught in vicious quick-cash, high interest cycle


Related Links Americans for Financial Reform report

News 12 at 6 o’clock / Friday, Dec. 19, 2014

AUGUSTA, Ga. (WRDW) — Some folks rely on payday and title loans to get from one paycheck to the next.

For Christene McCullough, taking out a title loan has been one big nightmare.

“Some nights I lay there and I cry,” said McCullough. “It’s gotten to the point where it’s hard to pay it (loan) because bus transfers are like $50 a month.”

In June, after her SUV broke down, McCullough borrowed $1,500 from TitleMax to get the vehicle fixed. It is still in the shop.

So, now she borrows a friends car which helps. But being on disability and raising two children, she does not have the money to make her $220 a month payment to TitleMax, because she said the interest is too high.

“You’re paying like $189 in interest and whatever else you pay over, that’s what goes to the loan,” McCullough said.

“I will never do that again,” Darrell Mayfield said.

He took out a $400 payday loan during Christmas several years ago.

“It was a necessity. I needed the money,” McCullough said.

But he too ran into some hardship.

“I called and let them know that I was going to give them the money the next day,” McCullough said.

Which he said led to dozens of harassing phone calls and even worse.

“Once you miss a payment, the interest level just skyrockets,” McCullough said. To as much as 500 percent.

According to a new report by non profit Americans for Reform, the “debt trap is an essential element of the quick-fix lending industry, and with its “extremely high fees, many people end up paying far more in loan charges than they originally borrowed; and because of strong arm collection tactics, payments to these predatory lenders often take priority over rent, utilities and other necessities.”

“The ability to pay is difficult so they get caught in that thing of trying to pay them back,” Mayfield said.

The industry has spent millions on lobbying and campaign contributions to 50 members of congress, in what AFR calls an effort to “line the pockets of powerful Washington politicians.”

Meanwhile McCullough says she has learned an expensive lesson. “If you are trying to get a loan from a loan place, don’t do it, said McCullough.

We called and or emailed TitleMax, Advance America and several other title pawn and payday lenders, but have not heard back from any of them yet.

Americans for Financial Reform report.

Have information or an opinion about this story? Click here to contact the newsroom.

Copyright WRDW-TV News 12. All rights reserved. This material may not be republished without express written permission.


Small Business Loan Stacking — Friend or Foe?

In the Small Business Lending industry, there has been quite a bit of conversation regarding the unscrupulous practices used by lenders and brokers alike. Some articles have taken an extreme approach in order to sensationalize the industry and attract market attention. One of the topics that is included in almost every broker/lender discussion or forum is that of stacking. Interestingly enough, most business owners have never even heard of the term and are unaware of the conversation that is happening.

So, What is Stacking?

Stacking means to secure an additional unsecured loan or cash advance on top of the loan or advance that a business owner already has in place. For example, if you have an unsecured loan with a lender where you’re making daily/weekly/monthly payments, and you get another loan from another lender in addition to the loan that you already have, you’re stacking. Now here’s the big question everyone’s asking, should stacking be allowed? And if so, under what circumstances? There’s a lot of debate surrounding the issue, so let’s take a look.

First off, other industries are okay with stacking as a practice, and in fact, they embrace it.

How many of us have credit cards in our wallet from American Express, Visa, and Mastercard? When you get a personal credit card, it is highly likely that other credit cards will notice that credit card on your credit profile and begin targeting you. If you decide to get another credit card on top of your first one, you’re going to be stacking your credit cards. In the credit card industry, it’s a widely accepted practice.

Stacking in the World of Small Business Loans

In the world of business loans, stacking is a whole other matter. Businesses usually have a lot of risk involved, and lenders do a lot of research and diligence before they lend to a business. When a business owner stacks a loan on top of one she already has, she will increase her financial burden without consulting the original lender and the lender doesn’t know about the additional risk.

Let’s say you’re a lender who found a small business with $200,000 dollars in annual revenue. You do the work and give them an unsecured loan for $25,000. A couple weeks later, you find out that they layered in a new cash advance for an additional $10,000 dollars. Suddenly, your risk went way up without an increase in reward (interest income). Now, where the real problem occurs is when this scenario happens 1-3 more times, where suddenly that small business has five unsecured loans or contracts, which of course they can’t possibly pay off, so they go under. This not only hurts the business owner, but it hurts the original lender.


Public warned not to use moneylenders for Christmas cash

The Central Bank of Ireland today asked consumers to “think twice” before using the services of moneylending firms this Christmas.

Research on the Moneylending Industry last year showed that more than one in five consumers (21%) took out a new loan before another loan was paid off.

Of these, 27% of the consumers interviewed claimed that they had used their new loan to reduce an existing loan.

Director of Consumer Protection, Bernard Sheridan, said “Households often have additional expenses at this time of year, and consumers could be tempted to take out additional loans to cover these expenses, including from moneylending firms.

“This could take consumers into a rolling cycle of high-cost borrowing and potential debt, especially given the high-cost nature of moneylender loans, when compared with loans from banks and credit unions.

“If a consumer does choose to take out an additional loan from a moneylender they should check that the moneylender is licensed by the Central Bank.

“Moneylenders licensed by the Central Bank are prohibited from keeping any amount of a new loan to repay an existing loan.”

He also had advice for those experiencing financial difficulties.

“If you have missed repayments, you’re protected insofar as your moneylender cannot charge you extra,” he said.

“However, if you find yourself having difficulties managing your money, contact the Money Advice and Budgeting Service who offer free budgeting advice and will help you manage your debt.”


What’s filling the gap in small business lending?

Since the financial crisis, small business owners have had greater challenges getting loans. Traditional banks rarely lend those small amounts, and the community banks that typically serviced those loans have shrunk significantly.

That lending gap has been a boon for a rapidly growing financial product called a merchant cash advance. Business owners can quickly get the money they need, but it can come at a very high price.

Edgar Jones explained that many in his position don’t have other options. Jones asked to change his name for the story. He owns a company that cleans commercial sites. With less than 15 employees, the company makes about $500,000 in revenue each year. After booking a big job to do post-construction clean-up, Jones needed fast cash to buy more equipment. But the bank wouldn’t approve the small loan he was looking for. So he turned to a merchant cash advance, or MCA.

“At that time, you be so vulnerable you take it because you really need the money at that time. After that, that’s when things either go uphill or downhill,” Jones said.

The MCA company deposited the money in Jones’ account and began collecting on that debt the next day.

“When the checks don’t come on time, then they hit your account and then your account is in the negative,” Jones said.

So when the repayment period was up, Jones said his bank account was still being drained. In order to pay off his most recent advance, he had to take on side jobs.

Jones’ credit score wasn’t much of a factor in getting approval for the merchant cash advance. What mattered most was his daily cash flow.

Here’s how it works. The MCA firm will deposit a lump sum into the business’ account, and then repayment can happen one of two ways. The MCA firm could collect by taking a cut of the business’ daily credit card sales. If there’s no credit card sale that day, there’s no collection.

With the other repayment plan, the MCA firm takes a daily withdrawal from the business’ account. If there’s no sale that day, the MCA firm still debit the account. The repayment period is usually a short amount of time, like 90 days.

Sean Murray with the Daily Funder, a merchant cash advance forum, said it’s the business owners’ responsibility to comb over the fine print. He hasn’t heard of bad actors in the industry, but said he’d be disappointed if the contract wasn’t fully explained.

“At the end of the day, if they don’t get back their money. It hurts them, too,” Murray said.

Merchant cash advances first came on the scene in the late 90s, but really took off after the financial crisis. Murray expects this industry to be worth about $5 billion for 2014. That’s small compared to the personal lending industry, but it’s big growth from the millions MCAs earned before the financial crisis.

Murray said the interest rate on an APR basis does seem high, upwards of 80 percent.

“But what’s important to note when we’re talking about costs that are high like that—these loans sound really, really high–is that these loans advertise daily. And so the actual cost of the money might only be 20 percent. Let’s say I give you $10,000 and the cost is $2,000, so that’s 20 percent,” Murray explained.

The MCA might be referred to as a loan, but it isn’t the traditional personal loan with which most are familiar. It escapes the scrutiny of regulation.

“Merchant cash advances are business-to-business transactions. They don’t involve consumers. The consumer protections that exist elsewhere in the market don’t really apply to businesses. It doesn’t mean there are no laws, and it’s a free for all. But the laws are generally pretty lax,” Murray said.

There’s not really a central office these companies report to. It’s not something that state lawmakers are keeping an eye on either.

Murray said people can certainly file any complaints with the Federal Trade Commission. He said the general industry consensus is that self-policing is the best option.

“Regulators come in and have a tendency to see part of the picture. It makes things more difficult for everyone else in the long run. It ends up hurting the customers they’re trying to protect rather than helping them,” Murray said.

Kevin Daleiden is the owner of Flange Advantage in Waukegan. He and two other men sell nuts and bolts out of a warehouse. Daleiden’s taken out at least seven merchant cash advances. He said he’s planned carefully for each one, but has still been caught off guard by fees he didn’t notice in the contract terms.

“One of the hardest things to get out of people at the very front is give me the payoff information. Give me the way I pay this back to you. There’s not a one of them out there that will tell you the facts upfront. And they won’t put it in writing until you’re signing the documents,” Daleiden said.

He said he’s constantly getting calls, emails and letters from MCA firms trying to get him to sign a deal.

“I don’t know how they get my name, but there’s hundreds of these companies out there and I think they call me everyday. I’ve had one gentleman that yelled at me, says ‘you need to give me all your business.’ I said ‘I’ll give my business to who I feel comfortable with,’ and he actually yelled at me on the phone,” he said.

Daleiden is trying to move away from MCAs and toward microloans. He’s now working with the Chicago non-profit Accion for his latest deal.

Microloans are what they sound like, smaller loans to small businesses distributed by a qualified non-profit. Accion services amounts $100,000 and less.

CEO Jonathan Brereton said it’s a better loan option with less than 5 percent defaulting, but MCA firms can distribute the money faster. Brereton admits meeting the demand is a big challenge.

“We think the market has a need and supply, there’s still an enormous gap. So we think we’re only serving about 15 percent of the market demand in Chicago,” he said.

Brereton said this past year has exploded with clients like Edgar Jones and Kevin Daleiden trying to get out from under merchant cash advances. He’s even seen people layering them.

“So they take one, cash flow gets tight. They take another. We’ve seen people take five or six loans from different lenders. All in the 100-190 percent interest range. But no where on any of the agreements does it specify the actual interest rate,” Brereton said.

The gap in small business lending left behind by the financial crisis allowed merchant cash advances to thrive. The product has helped some businesses increase their revenue when they otherwise wouldn’t have.

But Kevin Daleiden said it’s also the reason why some businesses have failed.

“My merchant advances have made them more money than I’ve taken home this year, and I’m doing the work. But I did that knowing it would be expensive. I had a goal,” Daleiden said. “If you don’t’ have a long term goal, a way in and a way out, the merchant advances will kill you.”

Susie An is the business reporter for WBEZ. Follow her @soosieon.


New payday loan rules to cap fees, total cost and default charges …

The UK’s financial watchdog is clamping down on payday loans, with new rules to ensure that borrowers are never forced to repay more than double the amount of their original loan.

The Financial Conduct Authority (FCA) said interest and fees will be capped at 0.8% a day, lowering the cost for most borrowers, while the total cost of a loan will be limited to 100% of the original sum. Default fees will be capped at £15 in an effort to protect people struggling to repay their debts.

The changes, which will come into force on 2 January, mean that someone borrowing £100 for 30 days will not pay more than £24 in fees and charges if they repay the loan on time.

But the Labour MP Stella Creasy, who has led the campaign against doorstep lenders, slammed the FCA plans – unchanged from an original draft published in July – as an early Christmas present to the “legal loanshark” industry.

The FCA said it did not want to drive payday lenders out of business. The regulator estimates the lenders will lose 70,000 borrowers, 7% of the total market, as a result of the changes, as they restrict less profitable loans.

Martin Wheatley, the FCA chief executive, said: “I am confident that the new rules strike the right balance for firms and consumers. If the price cap was any lower, then we risk not having a viable market, any higher and there would not be adequate protection for borrowers. For people who struggle to repay, we believe the new rules will put an end to spiralling payday debts. For most of the borrowers who do pay back their loans on time, the cap on fees and charges represents substantial protections.”

In the five months since the FCA took over regulation of consumer credit, the number of loans and the amount borrowed has dropped by 35%.

The chancellor, George Osborne, said: “We created a powerful new consumer regulator to regulate the payday lending industry and legislated to require the FCA to introduce a cap on the cost of payday loans. This is all part of our long-term economic plan to have a banking system that works for hard-working people and make sure some of the absolutely outrageous fees and unacceptable practices are dealt with.”

But critics accused the FCA of allowing “legal loan sharks” to slip through the net. “Today’s news will be welcomed as an early Christmas present for Britain’s legal loansharks,” said Creasy. “This cap is just £1 lower than their current charges. This is an industry where some firms are making nearly three quarters of a million pounds a week from British customers – such a high cap will do little to tackle these rip-off charges.

“We’ve warned regulators this cap needs to be much lower to really change the behaviour of these companies, but today’s announcement shows they are still not listening. Other countries are much stronger at taking on these companies.”

She said borrowers in Japan, Australia, Canada and parts of the US have better protection than UK consumers.

Debt charities gave the plans a cautious welcome, but urged the regulator to ensure that lenders did not simply change their business model to flout the rules.

Joanna Elson, chief executive of the Money Advice Trust, which runs National Debtline, said: “We hope that these measures will bring an end to the inappropriate lending that we have seen from this industry. However, the FCA will need to be vigilant to ensure that lenders do not simply change their business models to try to evade the rules.”

She added that even under the new rules, many people will still end up repaying very high amounts when they would be better off with free debt advice from charities.

The Consumer Finance Association (CFA), which represents some of the best-known payday lenders, has said the plans will drive some firms out of business. It estimates that only four players will remain in the market: three online lenders and one high street chain. “We will inevitably see fewer people getting fewer loans from fewer lenders,” said Russell Hamblin-Boone, chief executive of the CFA.

Wheatley said payday lenders could disappear from the UK high street within a year, although the FCA’s modelling suggested it was more likely that a few players would remain. Speaking on BBC Radio 4’s Today programme, he said: “We don’t want to close the industry, we want to change it so that it operates in a way that delivers good outcomes.”

He dismissed industry claims that thousands of people would lose out as a result of tighter access to credit, saying there were “a lot of myths in this space”.

According to FCA modelling, a majority of the 70,000 people who will no longer have access to payday loans will make do without getting a loan; others would borrow from family or an employer and only 2% would go to a loan shark.

The biggest online payday lender, Wonga, said it “looks forward to launching a cap-compliant product”.


EZCorp shares drop as it shys from payday loans, focuses on pawn …

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Nick Simonite/ABJ

EZCorp has seen a lot of changes at the executive level as the company tries to right ship.

Digital Editor- Austin Business Journal Email | Twitter

Shares of EZCorp Inc. slid about 10 percent Tuesday after the company announced it planned to largely shutter its lucrative, but increasingly scrutinized, online payday loan business operations in the U.S. and the U.K.

EZCorp (Nasdaq: EZPW) shares were trading at $8.96 Wednesday morning in pre-market activity, roughly 10 percent below the approximately $10 share price at the close of markets Monday.

Early Monday evening, officials at the Austin-based pawn shop and payday loan company said they would be exiting, either by sale or draw down, from its Cash Genie online payday loan operation in Great Britain, and a similar U.S.-focused online payday loan operation called EZOnline, according to a filing with the Securities and Exchange Commission.

In its filing, the company highlighted increasing government regulation of the payday loan industry — and its expected impact on revenue streams from such online payday loans — as one of the primary reasons for exiting the industry and focusing on its core pawn shop business. The company is cutting a total of 149 positions relating to those businesses in the coming months.

EZCorp has gone through significant corporate overhaul since July, when shareholders installed a new CEO and a new CFO to try and change the course of the company.

Michael Theis is the Austin Business Journal’s digital editor.

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