Payday loan companies like Cash Store have faced an excellent deal of legal opposition in their quest to provide instant cash loans for consumers. Much of this has come from consumer interest groups with lobbyist connections to some elected officials. They say they represent the best interests of consumers in their opposition to such outlets as CEO Gordon Reykdal’s Cash Store. However, if online cash loans loans were so damaging to a consumer’s finances, it would seem logical that they’d stay 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.
Cash Store holds 34 percent market share on cash now loans in Canada
For most CEOs, the connection with day-to-day business decisions at such places as Cash Store typically would be minimal. Very involved is Gordon Reykdal who is the Cash Store Financial CEO. He doesn’t let underlings 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 regarding cash til payday loans and how loan company can offer them. His efforts helped payday lenders and the government discover a middle ground where consumers and lenders can both nevertheless benefit from reasonably profitable lending transactions without the threat of exploitation. The rules will apply in almost every Canadian province except Quebec, where payday cash loans are really prohibited.
Growth into other services for many of the underbanked
Cash Store understands that a significant percentage of Canada’s population is effectively “underbanked.” Much like within the United States, numerous individuals do not have the credit standing to let them get small bank loans or are outside the traditional banking system for a variety of reasons. That seems to be why Gordon Reykdal would like to see Cash Store Financial branch out into 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 numerous different situations where they either don’t 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.
Cash Store is a good investment, says The Globe and Mail
With time, pay day loan and laws related have become clearer. Canada and also the UK have come to some solutions that have appeased both the industry and lawmakers. The United States, with its bureaucratic legislative morass, has yet to find such a middle ground. One result of this could be that consumers already harmed by the recession without a doubt and continue to discover it difficult to get 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/
