Check ‘n Go has a new video out about the perils of overdrawing your bank account w/ your debit card. There is also an interesting case study video titled “The Truth About Payday Loan Caps.” It compares Oregon and Washington. Oregon has imposed a $10/$100 rate cap on payday loans.
I think they’re well done and professional. You can view the videos here.
As of right now, Check n Go has stopped writing loans in Virginia. They are contemplating closing 68 stores in Virginia writes Forbes magazine.
On the surface, it does not make a lot of sense considering that the new payday laws allow a 20% fee plus 36% annual interest. The caveat is that it’s for a 30 day loan. Check n Go operates at around 6-8% net revenue, so they feel the extended period makes it tough to turn a profit.
It makes you wonder whether it’s worth operating in a state that has you on perpetual life support. Ironically, I bet lenders in Ohio would love to be in this situation.