Cash America 2010 Annual Report Download - page 11

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It has been said that the secret of
success is constancy of purpose. This
has certainly been the case for Cash
America, as we have emphasized new
ways to make short-term credit available
for our customers. We know that our
customers depend on us to help
them successfully navigate
financial challenges that
other institutions can’t or
won’t address. They
represent the heart of
America’s middle class who periodically
experience an unexpected need for
short-term funds – our products and
services keep their lights on, their rent
paid, their homes out of foreclosure and
their cars running.
Current data indicates that as many
as 60 million Americans in more than
30 million households are underserved
by banks, and those numbers continue
to rise in the wake of financial and
credit reform that makes it difficult
for even those with the best credit
histories to gain access to emergency
cash. Traditional lending institutions
have essentially abandoned many of
our customers, and all signs indicate
that the number of underserved will
continue to grow as financial institutions
seek to recoup costs of additional
regulation with greater fees.
An unintended consequence of
federal legislation covering credit cards
and overdraft protection may be that
millions of consumers long classified as
“banked” are driven into the unfamiliar
ranks of the “underbanked.” Cash
America’s tremendous experience
meeting the needs of the underserved
leaves us well-positioned to offer these
new consumers options for success.
Our customers are hard-working
people from all walks of life who care
about maintaining credit scores
and making fiscally responsible
decisions – and the reality is
that many of them struggle
to succeed without the help of
our products and services. As the
public has become more educated
about the favorable cost comparison
of Cash America’s services, we’ve
seen that many of our customers
are armed with research when they
choose a Cash America loan product.
They know that Cash America’s small,
short-term loans provide lower-cost
alternatives to increasingly high bank
fees, NSF charges, late fees on credit
cards and penalties on delinquent
accounts from utility companies or
mortgage lenders.
Our customers have come
to rely on us as a neighborhood
financial resource, and we’ve remained
successful in providing credit options
and friendly service, no matter their
situations. Our loans range from a
few weeks to a few months, giving
customers the ability to tailor financial
solutions that help them successfully
navigate their specific challenges.
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Many considered the pawn industry
a rather seedy pursuit when we began
our business in 1984. Images in movies
and literature of dimly lit, smoke-filled
storefronts and corruption perpetuated
many misperceptions about the
trade, and we faced an uphill battle
to successfully win public trust. Over
the past 26 years, Cash America has
revolutionized the pawn industry with
everything from store concepts and
layouts to a comprehensive database
for assigning collateral value –
all results of our successfully
meeting or exceeding customer
needs and industry standards.
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