Payday loan companies like Cash Store have faced a great deal of legal opposition in their quest to provide small cash loans loans for consumers. . They claim to represent the best interests of consumers in their opposition to such outlets as CEO Gordon Reykdal’s Cash Store. However, if money now loans were so damaging to a consumer’s finances, it would seem logical that they’d keep away from 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.
34 percent of market share on paycheck loans in Canada are held by Cash Store
For most CEOs, the connection with day-to-day business decisions at such places as Cash Store typically would be minimal. Cash Store Financial CEO, Gordon Reykdal is very involved. 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 extremely active role in the community (see video below), he played an active role in urging the Canadian government to clarify all of the laws concerning quick money loans loans and just how loan company can offer them. His efforts have helped many payday lenders and also the government find a workable middle ground where consumers and lenders can nevertheless benefit from reasonably profitable lending transactions without the threat of exploitation. The rules will continue to apply in each Canadian province except Quebec, where cash until payday loans are prohibited.
Growth into other services for the underbanked
Cash Store knows that a significant percentage of Canada’s population is effectively “underbanked.” Much like in the United States, many individuals don’t have the credit standing to take advantage of small bank loans or are outside the traditional banking system for a variety of reasons. That’s why Gordon Reykdal would like to see Cash Store Financial branch out to 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
Payroll loans laws have become clearer with time. Canada and the UK have come to some solutions that have appeased both the industry and lawmakers. The US has yet to find a middle ground like this. One result of this could possibly be that consumers already harmed by the recession continue to discover it difficult to obtain credit when they experience financial need.
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The Globe and Mail
theglobeandmail.com/globe-investor/investment-ideas/features/vox/cash-store-lends-credibility-to-payday-loan-industry/article1612297/
