More unemployment and fewer financial options will result when QC Holdings closes four Montana lending locations on Jan. 1, 2011.
Statewide, more than 700 jobs and $26 million in annual wages will be lost when 113 short-term lending outlets in Montana close as a result of the November ballot initiative mandating a 36 percent APR cap on short-term loans, effective Jan. 1, 2011.
“Montana voters were misled into believing that a 36 percent APR cap would lower the cost of short-term loans,” said QC President Darrin Andersen. “Today’s hard reality is that that cap is forcing cash-strapped Montana consumers to more costly and credit-damaging options like bounced checks, late bill payment penalties and unregulated, offshore Internet lenders.”
The rate cap essentially bans short-term loans, thereby denying an important credit option to Montana consumers who need it most. QC alone has extended loans to more than 14,000 Montana consumers whose credit options are limited.“There is no alternative for our customers,” said Kathleen Fiorino, QC’s Montana manager. “Many don’t know where to turn when they need cash to make ends meet.” In addition to the lost jobs and wages, Montana will lose an estimated $11.3 million in taxes and $42 million added to its economy, according to IHS Global, an economic research firm. Those losses will include real estate lease payments, utility fees and others. In addition to the loans, consumers will be without other financial services, including check cashing, money orders, wire transfers and bill payment services. About QC Holdings, Inc. Overland Park, Kan.-based QC Holdings, Inc. is a leading provider of short-term loans in the United States, growing from 48 branches to 537 branches since 1998. During fiscal 2009, the company advanced nearly $1.3 billion to customers and reported total revenues of $220.6 million. QC has more than 25 years of experience in the retail consumer finance industry, and was a founding member of the Community Financial Services Association of America (CFSA), whose mission is to promote laws that provide substantive consumer protections and to encourage responsible industry practices. Please visit www.qcholdings.com for more information.