Payday Loan Industry Watch Home News: Archive News: Recent News: RSS Newsfeeds News: Archive News: By State News: By Big 7 Podcasts Reviews Tips Links
About Us
Contact Us
Donate/Sponsor
Site Help
Find a Lender
Header

Republic Bank ending payday loan business

March 2, 2006 - Louisville, Kentucky

At the urging of the Federal Deposit Insurance Corp., Republic Bank & Trust Co. has decided to end its payday loan business.

In a Feb. 17 letter to the bank, the FDIC "cited inherent risks associated with payday lending activities and asked the bank to consider ending this line of business," according to a filing with the U.S. Securities and Exchange Commission.

Consequently, the Louisville-based bank is getting out of its marketing and servicing agreement with Ace Cash Express Inc., which offers Republic's payday loans in Texas, Pennsylvania and Arkansas.

Republic currently has $2.4 million in loans outstanding through Ace, the filing said.

Republic stopped offering payday loans in Texas on Feb. 27, and it plans to end that business in Arkansas and Pennsylvania on June 30.

During the fourth quarter of 2005, Republic recorded net income of about $299,000 through its partnership with Ace.

Republic Bank & Trust Company of Indiana also received a letter from the FDIC and has opted to terminate its Internet payday loan program, which began operating in July 2005 and has remained in a developmental stage, the filing said. During the fourth quarter of 2005, the bank recorded a net loss of about $517,000 from the program.

Republic Bank & Trust Co., with 32 banking centers in Kentucky, and Republic Bank & Trust Company of Indiana, with two banking centers in Indiana, are subsidiaries of Louisville-based Republic Bancorp Inc. (NASDAQ: RBCAA).

News Source

Business First, Staff Writer

Related Stories - ACE Cash Express (NASDAQ: AACE)

Related Stories - Kentucky

Return

See: Recent News | Archived News | RSS Newsfeeds | News by State
Go to PLIWatch.org home.

E-mail This Page Open a new window and send this page to a friend.
Share this page by E-mail.
Podcasts Podcasts page.
Interview with David Farias - Founder, FYGO.com
Payday loan opponents caution people against taking payday loans. We interviewed David to better understand the practice and viability of an emerging source for loans: The Internet social lending network.

Interview with Pete Kowenhoven - Special Agent, FBI
Interview with Dr. Tom Lehman - Author of 'In Defense of Payday Lending'
Interview with Bill McCloskey - Email Data Source President and CEO
Reviews Reviews page.
July 21 - WeGiveCash claimed we could get $1,500. But, after entering qualifying customer information, we were declined and then forwarded to another Web site to re-apply.
Find a Lender Find a Lender page.
Claims to lend
To residents of
With fees per $100 loaned
On the Web since
reviewed by PLIWatch
small payday loan industry watch logo
Recent RSS Newsfeeds Archive Shown by State Shown by 'Big 7'
Home News & RSS Podcasts Reviews Tips Links Find a Lender About Us Contact Us Donate / Sponsor Site Help
Terms of Use Privacy Policy Site Map copyright © 2005-2024 pliwatch.org all rights reserved Updated: Nov 22, 2022 07:57 EST