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.
I hope this company goes out of business they are nothing but modern day loan sharks!
…the new regulations will cut back on the predatory aspects of their business, and the useful part (assuming there is any?) will thrive. But on a visceral level, I’m thrilled to see this place close.
“…the new regulations will cut back on the predatory aspects of their business, and the useful part (assuming there is any?) will thrive”
The useful parts draw people in, but the predatory business is what they thrive upon.
Good fucking riddance, I hope we regulate them to death. More than 2000% interest is horrible. I worked for a bit in the corporate office for a short term loan company like that, I felt incredibly guilty even though I had no interactions with the customers.
I know tons of peole who cashed checks there…. for years, very happy. Oh well.
God, this post has brought our strong feelings. I hate to pay Chase 29 per cent on my cc – but – the mega blood sucker that is Chase is safe.
“I know tons of peole who cashed checks there…. for years, very happy. Oh well.”
Yeah, I wish there could be just that benefit, but convenience isn’t worth the dark side of these places. They’re an absolute blight.
You know what’s convenient? A credit union account! For a small fraction of what usurers like Payday Loans will suck out of you, you can join a credit union and have your checks cashed for free. I’ve been a credit union member for years and lovelovelove them. I guess a lot of people on the Hill use BECU, but I recently joined Salal (formerly Group Health) because they’re close to where I live and have Saturday hours. It was super easy and the people are lovely.
I know there are barriers of time and money that keep many people from opening bank accounts, but it seems like such a no-brainer compared to the “services” offered by Payday, et al. Am I missing something here? Why would someone use Payday more than 12 times a year?
Yeah, you are missing a lot. Those in the comfort zone of the mainstream never understand the millions who are not.
No ID, bad ID, assumed name, illegal worker, under the table money, drug money, how long a list do you need?
Or, simply, hate banks.
Credit is the modern serfdom/slavery. I hope all these stores fall – go legislation!
Lynnwood has two “n’s”.
Got me. I’ve missed this one before. Shame :(
Credit, banking to the under and working classes if FAR FAR from serfdom.
You would have starved as a kid under serfdom. Access to credit has given the world a living standard in this era never possible in earlier ages.
Sorry, your grasp of history and how wealth is created and who benefits is lacking. Constructive debt is NOT borrowing to get drunk or buy drugs. Or running the card to $10,000. with no idea what you bought.
There is a new credit union in town, geared for the unbanked – with support services to help people manage their finances:
http://expresscu.org
and a story about it
http://seattletimes.nwsource.com/html/businesstechnology/200
YES!
And an article about Express Credit Union in the Puget Sound Business Journal just last Friday:
http://seattle.bizjournals.com/seattle/stories/2010/08/02/st^3728001
Express is here to help those with no credit, have had credit problems, are new to the country, and need to get a bank account and build credit and assets. No minimum balance, low cost. They also have an innovative Vehicle Ownership programs – matching downpayments for cars. They’re online at http://www.expresscu.org
Ugh. If this keeps going Broadway is going to be one long strip of empty buildings.
I am so pleased to see this place go! It really is a testament to successful organizing and activism that these predators are finally being run out of our neighborhoods. I hope that they all close down. It has been disturbing (and a little gratifying) to read the “poor me” notices on the doors of many payday outlets in Seattle, blaming new legislation and painting the predators as besieged friends to their customers. The industry can spin it any way they want but nobody needs these loans, low income folks especially. @Mike in Curls: The folks you describe deserve fair deals and the predatory lending industry will never offer anyone a fair deal.
Congratulations to all the citizens and organizers who helped this happen!
You people really don’t know what you’re talking about.
This idea of insane interest rates is just not correct. I was one of people laid off from this company earlier this year cause of these laws. So I’m by no means looking to kiss ass. Heres how those interest rates work.
You get charged $15 per hundred. If you couldn’t pay it on time, you call us. We’d extend your check for a whopping fee of $0.00. Then if that doesn’t work, we could cut the check in to four payments where every two weeks you can pay 1/4.
And let’s say you let it bounce. There’s a $25.00 fee, and if you wanted to just cone in and make regular payments that aren’t laughable, you aren’t going to a collections agency. My store had someone who paid $10.00 a check for over a year. It didn’t cost her a fucking cent extra.
This company takes good care of their customers, and great care of employees. Anyone who says otherwise is lying. Maybe they sent you to collections and now you hate them, but you know they gave you every chance to take care of it before that.
I agree its stupid to use the service all the time. It’s also stupid to smoke, not bag your lunch sometimes, etc.
And its been six months that I’ve now been stuck looking for a decent paying new job. So you uniformed people happy about this, can kiss my ass.
How about before people like you start running your mouth about topics (such as payday lending) you actually get some facts correct. As the poster above me mentioned all of you have little to no idea about how the loan works. It’s not some “2,000%” that someone quoted earlier. Unfortunatley the Department of Financial Institution forces us to quote APRS – which by the way referrs to “Annual Percentage Rate” not a PAYDAY loan term. If you were to borrow $700 for one week every year that is what the interest would accumulate to. Payday loans are not meant for a long term financial solution. If it was then it would probably be called something else. If grown adults were concious of their spending or able to manage their money they wouldn’t get trapped into a “cycle” or force people to have to reloan. It’s not our job to regulate your money. The same way McDonalds is not responsible to regulate the amount of cheeseburgers your fat ass inhales. We aren’t your mother. Grow up and take responsibility for your own actions. We are here as a service to help people and if the ignorant want to run their traps with untrue statements go ahead but make sure you quote facts before you do.
Finally people with some common sense. Thank you. How many more hard working citizens with families who are/were able to take care of them WITHOUT the help of the government (medical benefits/ food assistance/ housing assistance, etc) do you want to lose their jobs? This is ridiculous. I’m sorry for the few that chooses this service becuase they no longer have respect for banks. Where will they go now? What are they to do?
To those who are so damn excited for the payday industry to shut down, are you going to be able to lend the friend that used the service the 600 bucks they need for an unexpected bill until they are paid again, or can pay you back? Don’t think so. I bet you will lose the friend instead.
Yes! Let’s support bullshit legislation like this so that one day, it may be YOU and the industry or company YOU work for. See how it feels to be on unemployment and have to get in line to ask for help from the government you paid your taxes to for years, who barely want to give back to you when you need it.