Cash America 2015 Annual Report Download - page 51

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Theconsumerloanlossprovisiondecreasedby$7.9million,or25.5%,in2015comparedto2014.The
decrease in the loss provision was primarily due to the decrease in consumer loan balances as a result of the closure
and sale of certain store locations and the Company’s strategic decision to deemphasize and eliminate short-term
consumer lending activities in many of its locations, as well as an improvement in short-term loan portfolio
performance in remaining locations and decreased charge-offs in 2015 compared to 2014. In addition, the Company
began selling delinquent loans to third parties in 2015 and received proceeds of $2.7 million in 2015, which
primarily consisted of proceeds from the initial sale. Sales of delinquent loans increased recoveries and therefore
reduced the loss provision. The Company expects to continue selling delinquent loans from time-to-time but does
not expect future sales of delinquent loans to be of this magnitude. The decrease in the consumer loan loss provision
was partially offset by an increased provision from an unsecured installment loan product offering that was
expanded in 2015. The consumer loan loss provision as a percentage of consumer loan fees decreased to 28.0% in
2015 compared to 31.7% in 2014 due to the factors described above.
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