The passage of new consumer finance laws in various states has opened the doors to this highly lucrative business! Prior to these events, state usury laws made it impossible to justify the risks involved in this type of lending.

For example, in California, Senate Bill 1959, passed in July of 1996, changing everything for us. Our legislators realized the need for consumers to secure small, emergency loans, with little or no red tape. They also recognized that banks were closing branches as a result of mergers and acquisitions, making it difficult for their constituents to avail themselves of bank services. Lastly, the typical consumer finance companies were not interested in originating $100 to $500 non-secured loans(payday loans,payday advances).

Meanwhile, our clients still required small, quick, no hassle, loans to take care of “surprise” expenses, like auto repairs, cover a check they have written, rent due, phone or utility bill, etc., etc., etc.