Cash America 2012 Annual Report Download - page 30

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Withdrawal of Proposed Initial Public Offering of Enova International, Inc.
On September 15, 2011, Enova filed a registration statement on Form S-1 (“Registration Statement”) with the
Securities and Exchange Commission (the “SEC”) in connection with a proposed initial public offering (“IPO”) of its
common stock. On July 25, 2012, Enova filed an Application for Withdrawal of Registration Statement with the SEC to
withdraw its Registration Statement, together with all exhibits and amendments. The Registration Statement had not
been declared effective by the SEC, and no securities have been sold in connection with the offering pursuant to the
Registration Statement.
Recent Regulatory and Other Developments
Ohio Court Decision
On May 28, 2009, a subsidiary of the Company, Ohio Neighborhood Finance, Inc., doing business as Cashland
(“Cashland”), filed a standard collections suit in an Elyria Municipal Court in Ohio against Rodney Scott seeking
judgment against Mr. Scott in the amount of $570.16, which was the amount due under his loan agreement. Cashland’s
loan was offered under the Ohio Mortgage Loan Act (“OMLA”), which allows for interest at a rate of 25% per annum
plus certain loan fees allowed by the statute. The Municipal Court held that short-term, single-payment consumer loans
made by Cashland are not authorized under the OMLA, and instead should have been offered under the Ohio Short-
Term Lender Law, which was passed by the Ohio legislature in 2008 for consumer loans with similar terms. Due to a
cap on interest and loan fees at an amount that is less than permitted under OMLA, the Company does not offer loans
under the Ohio Short-Term Lender Law.
On December 3, 2012, the Ohio Ninth District Court of Appeals affirmed the Municipal Court’s ruling in a 2-1
decision. Although this court decision is only legally binding in the Ninth District of Ohio, which includes four counties
in northern Ohio where Cashland operates seven stores, other Ohio courts may consider this decision.
The Company filed an appeal of the Ninth District Court’s decision with the Ohio Supreme Court on January
17, 2013 because it believes that this decision is contrary to the language of the OMLA, and the Ohio Supreme Court
has not yet determined whether it will hear the appeal. If the Ninth District Court’s decision is upheld by the Ohio
Supreme Court on appeal, the Company’s Ohio operations may be adversely affected. The Company relies on the
OMLA to make short-term loans in its retail services locations in Ohio, and if the Company is unable to continue
making short-term loans under this law, it will have to alter its short-term loan product in Ohio.
Delaware Legislation
In June 2012, the State of Delaware passed a bill, which took effect on January 1, 2013, to amend its short-term
consumer loan law to, among other things, limit the number of loans a borrower may have in any twelve-month period
and establish a statewide database to track these loans. The bill only affects the Company’s short-term loan product in
Delaware (and does not affect its installment loan product in that state). The impact of this bill will not have a material
effect on the Company, including its consolidated revenue or operations.
Australia National Consumer Credit Protection Act Amendment
In Australia the Company acts as a finance broker, offering the lending products of unaffiliated third-party
lenders, which is similar to the Company’s CSO programs in the United States. In Australia, the Company follows the
responsible lending guidelines under the National Consumer Credit Protection Act (2010) (the “NCCPA”), which has
been recently amended. Part of the amendment will become effective on March 1, 2013, and the remainder will become
effective on July 1, 2013. The amendment includes limitations on permissible fees charged on certain consumer loans,
including consumer loans arranged by the Company. The Company is still assessing the impact of this amendment on
the product offered in Australia, but the Company expects that the product will be modified as a result of this