Analysts Weigh in on Payday Lending

Published on:
12 September 2006 at 10:19 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00002902-analysts-weigh-in-on-payday-lending/

Wall Street took a bite out of payday lenders for the second straight day Thursday as analysts weighed in on new guidelines laid out by the Federal Deposit Insurance Corp. restricting business on repeat users of payday loans.

Shares of Ace Cash Express fell 10 cents to $23.85. Advance America Cash Advance declined 8.3 percent to $14.99. Payday lenders offer cash advances against customers’ paychecks.

The new FDIC guidelines state that payday loans shall not be provided to customers that have loans outstanding from any lender for a total of three months in the previous 12-month period.

Advance America Cash Advance drew a downgrade from JMP Securities to “market perform” from “market outperform.”

Analyst John Hecht said in a note to clients that the FDIC announcement was unexpected.

For this complete story, please visit Analysts Weigh in on Payday Lending.