“We have been in decline for four years,” he said. This was partly due to regulation and competition from online lenders, he said, and partly because his clients had not recovered from the recession. “Everyone tells us that (the economy) is improving,” he said, “but I don’t see the results.”
Like other lenders interviewed, Hutcheson said in some cases banks, under pressure from the Justice Department, have severed relationships with its stores. In some areas, he said, he can’t find a bank, so his employees go to Walmart and use the money to get a money order, which they scan and send to a bank in Alabama to be deposited. .
One of the largest securities lending chains in the country, Max Title, also experienced a decline in loan volume and income in Missouri; he closed several stores. The company’s profit fell from $ 16 million before tax in 2014 to $ 14 million in 2015, the most recent year for which a state deposit was available. Its loan volume increased from $ 55 million to $ 50.6 million, and the number of cars it took over in the state fell from 8,960 to 8,137. The company did not respond. to a maintenance request.
The largest payday lender in the state, QC Holdings, of Overland Park, Kan., saw its operating profit in Missouri drop from $ 54 million in 2013 to $ 37 million in 2015, according to state documents. He voluntarily withdrew from the Nasdaq stock exchange to save money on compliance costs.