Just how profitable is the payday lending business?
Most payday lenders in the central San Joaquin Valley are privately held. A look at two publicly traded companies that have stores here, however, suggests it can be a lucrative trade.
Advance America, the nation's largest payday lender, has 41 stores in Fresno, Kings, Madera, Merced and Tulare counties. Its latest financial statements show the South Carolina-based company earned $21.8 million in the first six months of 2009 on revenue of $306.5 million.
The company's president and chief executive, Kenneth Compton, earned $2.2 million in salary, bonuses and other compensation in 2008.
The company announced last week that the U.S. Securities and Exchange Commission is investigating Compton for possible insider-trading violations. Advance America said it expects the SEC to charge Compton with helping some investors avoid about $20,000 in losses by selling stock in 2007. "Mr. Compton has denied making any improper trades or engaging in any wrongdoing or any other activity," said Patrick O'Shaughnessy, the company's chief financial officer, in a statement.
Another public company, Pennsylvania-based Dollar Financial Corp., operates 14 Money Mart payday-loan stores in the Valley. Dollar Financial reported it earned $7.9 million on revenue of $118 million in the first three months of 2009.
Dollar's chairman and CEO, Jeffrey Weiss, earned $5.2 million in salary, stock awards and other compensation in 2008.
A few rules are needed to help foster a feeling of community. We encourage a free and open exchange of ideas in a climate of mutual respect, but any post that violates someone's right to use and enjoy fresnobee.com is prohibited. Before you post, please read the terms of use and obey these simple guidelines.
Here are the ground rules:
Contents of this site are © Copyright The Fresno Bee. All rights reserved.
E-Mail
Print
@Nyx.CommentBody@