Payday Loan Company Shares Hit All-Time Low
By Paul RizzoPayday Loan Writer
Shares of Spartanburg payday lender Advance America hit an all-time low Wednesday a day after a Pennsylvania court ruled the Spartanburg cash loan company violated that states consumer law.
Advance America provided bad credit payday loans of as much as $500 to people in return for 6 percent interest plus a $150 monthly fee, a Pennsylvania court ruled Tuesday in agreeing with the state Banking Departments claim that fees exceeded limits set in state law.
The opinion prevents Advance America from continuing to lend money or collecting on lines of credit or loans currently outstanding in the Commonwealth of Pennsylvania pursuant to the violations of state law.
Advance America said it would appeal.
This provider of cash advances saw its shares slipped to $11.29 during trading Wednesday the lowest since the stock debuted in December 2004. Shares finished at $11.84, down $2.83 from Tuesday.