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Wall Street and Payday: Cash America

Adam Rust's picture

Posted April 24, 2013

Cash America, one of the country's largest providers of payday and pawn loans, has been able to borrow a lot of money from the Wall Street operations of some of our nation's largest banks.

Recently (March 30, 2011), Cash America secured a new credit agreement that

provided $330 million in debt financing. The debt included two revolving lines of credit of $280 million and a $50 million term loan. The debt included a term loan of $50 million and a revolver of $380 million.

Seven banks provided $330 million in loans to Cash American in 2011.

Earlier I documented a larger loan made to World Acceptance. As in this case, Wells Fargo has provided the largest share of the debt. I also pointed out that six of the eight financiers of that loan were regulated by the OCC. In the case of Cash America, though, the regulatory pattern is a bit different. Here, the Office of the Comptroller of the Currency has supervisory and enforcement authority over every lender.