Personal loan companies just like the one called Cash Store have faced a great deal of legal opposition in their quest to provide quick money loans loans for consumers. Much of the flak has come from consumer interest groups with lobbyist connections to elected officials. They claim to represent the best interests of all of their consumers in their opposition to such outlets as CEO Gordon Reykdal’s Cash Store. However, if cash until payday loan loans were so damaging to a consumer’s finances, it would seem logical that they’d avoid the product. Yet as a recent The Globe and Mail article suggests, Reykdal and Cash Store Financial are a popular choice in Canada and abroad.
Cash Store has about 34 percent of market share on pay day loans in Canada
For most CEOs, the connection with day-to-day business decisions at such places as Cash Store would be minimal. However, Cash Store Financial CEO Gordon Reykdal is far from uninvolved. He doesn’t sit and wait for money to roll in and allow underlings to make all the tough decisions. On the contrary, Reykdal is heavily invested in Cash Store; he owns a quarter of the stock, as reported by The Globe and Mail. Not only has Reykdal ensured that Cash Store Financial would play an active role within the community (as shown in video below), he played an active role in urging the Canadian government to clarify the laws concerning online cash loans loans and how payday loan companies can offer them. His efforts helped payday loan store and the government find a middle ground where consumers and lenders can both nevertheless benefit from reasonably profitable lending transactions without the threat of exploitation. The rules will apply in almost each Canadian province except Quebec, where payday cash loans are really prohibited.
Growth into other services for many of the underbanked
Cash Store knows that a significant percentage of Canada’s population is effectively “underbanked.” Much like in the United States, numerous people do not have the credit standing to let them get small bank loans or are outside the traditional banking system for a variety of reasons. That seems to be why Gordon Reykdal would like to see Cash Store Financial branch out into the field of banking services for its large customer base. Simple services, such as taking deposits, go a long way toward improving a consumer’s financial portfolio in situations where they either do not trust traditional banks or encounter barriers that prevent them from using traditional banks. In the fragmented payday cash loans environment that defines much of Canada, Cash Store has a responsibility to its customer base to serve their financial needs when traditional banks refuse to do so.
Globe and Mail say the Cash Store is a good investment
Payday loans laws have become clearer with time. Canada and the UK have come to workable solutions that have appeased both the industry and lawmakers. The US hasn’t found a middle ground yet. One result of this might just be that consumers already harmed by the recession continue to discover it difficult to obtain credit when they experience financial need.
Additional data at these websites
The Globe and Mail
theglobeandmail.com/globe-investor/investment-ideas/features/vox/cash-store-lends-credibility-to-payday-loan-industry/article1612297/
