Chuck Brennan on Measuring Payday Loans: We’re Not Closing
It’s business as usual at the Dollar Loan Center a day after South Dakotas strongly approved a plan to cap payday loan interest rates at 36%.
“We will be lending exactly as we are doing now until the law changes and at the moment we don’t know the rules yet either,” said founder Chuck Brennan. “Then we’ll adapt our lending processes and see how that fits into our model. “
Dollar Loan Center, which has been operating in South Dakota for 15 years and has 10 branches across the state, “is certainly not closing,” he added.
“We will continue to do what we have been doing for a long time.
Brennan said he stayed out of the campaign because he preferred to leave it to voters.
“They have spoken loud and clear and they don’t want payday loans in South Dakota,” he said. “I guess they’re going to think it’s pretty awesome right now. If they’re not credit customers, it doesn’t affect them anyway, and if they’re credit customers, they have to go and get their money somewhere.
His company has about 25,000 customers in South Dakota, but he calls it a small part of the Dollar Loan Center portfolio.
“It’s probably 5 percent of our business,” Brennan said. “I donate more to charities in South Dakota than I earn in South Dakota.”
While he said he didn’t want to speak for the industry, he said the change would likely hurt small mom loan operations the most.
“The group most affected by this decision is the ready customers,” said Brennan. “They have to go get their money somewhere.”
He speculated that these clients could turn to unlicensed online lenders “somewhere overseas or online that looks like an approved South Dakota lender, and they won’t have the protections they have now.” or won’t be able to walk into a good store like Dollar Loan Center and come out with cash Dollar Loan Center will be fine Our staff will be fine People who are not doing well are our customers.
Brennan called the vote a “slippery slope” that threatens to affect the state’s financial services economy if similar measures regulating credit card interest are put in place.
“It’s gone so overwhelmingly that I wouldn’t be surprised if it happened. I’ve heard people say it’s next time.
A self-proclaimed political junkie, he said he was “absolutely thrilled” with the national election.
“I think it was a lot of angst with the stalemate in Washington,” he said. “I think Trump has his faults. I think Hillary had more. But to see this in our lifetime is absolutely amazing no matter which side you are on. I think this is the biggest political coup that we will see in our lifetime.
AFTER: Complete election coverage