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Ten Data Points about Community Choice Financial

Adam Rust's picture

Posted May 16, 2014

Payday (short-term) loan data: 

  1. Short-term interest rates: A payday loan has had an APR of 319 percent and 328 percent, respectively, during 2013 and 2014. 
  2. Average loan size is about $410 and the average fee is $51. 

Medium-Term loan data:

  1. More loans and for more dollars: The company had more than 58,000 medium-term loans outstanding at the end of March 31st. One year ago, that number was only 22,000! The average medium-term loan size increased 66 percent. 
  2. Average interest rate on an annualized basis: 294 and 245 percent, respectively, during the first three months of each of the last two years. 
  3. They set aside $10 million to provide for losses expected on their $48.5 million medium-term loan portfolio. Takeaway: if the future of consumer finance is more medium-term lending, then loss rates are going to be much higher. Ability-to-repay?  

Secured-loan data:

  1. Thirteen percent increase in volume of secured loans. 
  2. Average loan size grew by eleven percent to $1,182. 
  3. Average interest rate was 145 percent. 

Other:

  1. They are spending approximately one million dollars per quarter to collect on outstanding debts. 
  2. Average fee to cash a check is sixteen dollars. 

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