The Broadway outlet for payday loan company Check Masters will be one of ten of the Lynnwood-based chain’s offices to shut down later this week, according to a company spokesperson. Though national attention has focused on big bank loans, payday loan companies in Washington like Check Masters say they have seen a decline in business under legislation that went into effect earlier this year.
Check Masters is the operating name of McCarthy Finance. A company spokesperson said it is hard to predict what the future of the company looks like and did not know if more branches might be closed or if there were any plans to try to reopen in new locations.
“We’re hoping this will be enough,” a company spokesperson told CHS. “But we might have to close more.”
The legislation that took effect January 1st restricts borrowers from taking out more than eight payday loans in a 12-month period among other stipulations.
The closures will leave 12 of the company’s 22 locations open. The Broadway branch manager we spoke with said some of the Capitol Hill employees will be transferred to other branches. Neither she nor anyone at the main office would say how many jobs will be lost because of the closure. A spokesperson did tell us that the company will trim about 100 of its 145 employees in layoffs associated with the closed outlets.
The Broadway Check Masters, along with the nine other stores scheduled to close, will be open until Friday, Aug. 6.