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deposit-related consumer credit

Suddenly, Community Choice Financial's Debt is Losing its Security

Adam Rust's picture

Posted May 5, 2015

Moody's says that it may downgrade Community Choice Financial's debt. Community Choice Financial is the parent of CheckSmart, Cash & Go, Buckeye Title Loans, and Easy Money, among others. Moody's is concerned about the headwinds facing this heavily-indebted company. Moody's says it is a function of credit costs, but reading between the lines, Moody's anxiety also reflects how decisions by banks to disinvest in commercial relationships with payday lenders can quickly lead to challenges in the ongoing short-term high-cost consumer finance business model.

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