Today, the
committee reaffirmed a consumer's right [to choose] by defeating
an attempt to effectively end payday advances in the
Commonwealth.
Ken Comp, Chief Executive Officer, Advance America
Ken Comp, Chief Executive Officer of Advance America, the
country's largest payday lender said, "Since 2002, Virginians
have had the option of a regulated payday advance to meet
short-term financial obligations. Today, the committee
reaffirmed a consumer's right to this choice by defeating an
attempt to effectively end payday advances in the Commonwealth."
Advance America operates 142 locations in Virginia. Compton said
his company plays a useful societal role by providing a solution
that large banks, credit unions and other financial and
government institutions find difficult to offer. "Payday
advances can be a good choice for consumers who seek a measured
and responsible tool for managing their cash flow, particularly
balanced against the cost of bouncing a check or missing a
credit card payment."
Compton also said payday loans can be a better choice for
Virginians who either cannot qualify for other forms of credit
or only seek to have a short- term loan rather than establishing
a large revolving credit line and accruing monthly interest-rate
costs. "We appreciate the Committee's bipartisan recognition
that our product can be valuable to their constituents," he
said"
Advance America has worked with dozens of state and local
officials across the country to craft reasonable regulations to
address the small number of customers who misuse the product or
become over-reliant on it, and put themselves in financial
jeopardy. Compton concluded, "We strongly support financial
literacy, and giving our customers the tools they need to make
sound long-term decisions related to their money. And we look
forward to continuing our cooperation with the General Assembly
in Virginia toward our shared goals on this matter."
