Advance America is deeply troubled to see another reduction in options available to consumers, rather than reasonable reforms that would clearly better serve the citizens of the great state of Ohio.
Ken Compton, CEO of Advance America

Commenting on the passage yesterday of Ohio Ballot Initiative 5 that denies consumers the right to choose payday loans as a short-term credit option, Ken Compton, Chief Executive Officer of Advance America, said, "Advance America is deeply troubled to see another reduction in options available to consumers, rather than reasonable reforms that would clearly better serve the citizens of the great state of Ohio."

In an effort to continue serving its customers in the state, Advance America has obtained small-loan licenses from the Department of Commerce for its 244 Centers in Ohio. Once the election results are certified by the Ohio Secretary of State, the Company intends to offer a small loan product, under the Ohio Small Loan Act, at interest rates below the state's usury cap, and check cashing and other services in compliance with applicable law in all centers located in Ohio. If, however, Advance America determines that it is unable to implement an economically viable alternative loan product in Ohio, it may close some or all of its centers in the state.

Separately, the ballot initiative in Arizona to extend the existing payday cash advance statute beyond its currently scheduled expiration of July 1, 2010 failed. Advance America is committed to working constructively with the Arizona legislature and other public officials to ensure access to affordable short-term loans in the future and to develop regulations that protect all consumers.

Advance America said that given consumer demand for payday cash advance services, as well as the current economic climate facing the nation, fostering healthy personal financial choices is more important than ever.