[December 04, 2012] |
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Cash America to Make Voluntary Reimbursement to Ohio Customers
FORT WORTH, Texas --(Business Wire)--
Cash America International, Inc. (NYSE:CSH) announced today a voluntary
program to fully reimburse approximately 14,000 Ohio customers for funds
collected in connection with legal proceedings initiated by the Company
in Ohio from January 1, 2008 to the present seeking the collection of
past due loan amounts owed to the Company.
Cash America recently determined that a small number of employees did
not prepare some court documents properly in many of its Ohio
collections legal proceedings. While the Company believes the filed
documents accurately depict the existence and amount of the debts owed
to the Company under consumer lending contracts, the preparation and
filing of these documents did not always comply with certain court rules.
"We hold ourselves to the highest ethical standards. When we discovered
this problem, we took swift action," said Daniel R. Feehan, Chief
Executive Officer of Cash America. "First and foremost, we will take
care of our customers and we are implementing rigorous measures to do
so. We will also institute additional steps to help prevent this problem
from occurring again."
Cash America will voluntarily reimburse all amounts received through
collections legal proceedings initiated by the Company in Ohio, from
January 1, 2008 to the present, plus interest, including the
reimbursement of amounts collected in connection with legal proceedings
that were not affected by the improper document preparation. The Company
is engaging an independent claims administrator to conduct the
reimbursement program and to ensure the most comprehensive reimbursement
possible. In addition, for all trial court collections proceedings filed
in Ohio since January 1, 2008 with the exception of one appellate
matter, Cash America will promptly file dismissals, terminate all
existing post-judgment collections activities, and request to vacate
each judgment entered and/or notify credit reporting bureaus of the
vacated judgments, as necessary for each case. While Cash America is
taking these actions proactively, it could still be subject to other
liabilities, and additional changes in its business practices may also
be required.
Cash America has voluntarily disclosed this issue and its intent to
implement the reimbursement program to state and federal regulators and
will continue to keep regulators informed on the progress of the program
and the other measures it will take in connection with this issue.
Cash America estimates that the cost of this reimbursement program and
related expenses will be approximately $13.4 million before taxes, which
will be included in the financial results for its fourth quarter ended
December 31, 2012.
"We are deeply committed to our customers, our shareholders and our
7,000 employees who work diligently to provide the highest level of
service to our communities," Mr. Feehan said. "We are taking these steps
to demonstrate our commitment to corporate integrity and community
responsibility."
Safe Harbor Statement under the Private
Securities Litigation Reform Act of 1995
This release contains forward-looking statements about the business,
financial condition and prospects of the Company. The actual results of
the Company could differ materially from those indicated by the
forward-looking statements because of various risks and uncertainties
including, without limitation: changes in domestic and foreign pawn,
consumer credit, tax and other laws and governmental rules and
regulations applicable to the Company's business or changes in the
interpretation or enforcement thereof; the anticipated regulation of
consumer financial products and services by the Consumer Financial
Protection Bureau; acceptance by consumers, legislators or regulators of
the negative characterization by the media and consumer activists with
respect to certain of the Company's loan products; the reorganization of
the Company's Mexico-based pawn operations; the deterioration of the
political, regulatory or economic environment in foreign countries where
the Company operates or in the future may operate; the actions of third
parties who provide, acquire or offer products and services to, from or
for the Company; changes in demand for the Company's services and the
continued acceptance of the online distribution channel by the Company's
online loan customers; fluctuations in the price of gold or a
deterioration in economic conditions; changes in competition; the
ability of the Company to open new locations in accordance with its
plans or to successfully integrate newly acquired businesses into the
Company's operations; interest rate and foreign currency exchange rate
fluctuations; the effect of any current or future litigation proceedings
or any judicial decisions or rule-making that affect the Company's
arbitration agreements; changes in the capital markets; changes in the
Company's ability to satisfy its debt obligations or to refinance
existing debt obligations or obtain new capital to finance growth; a
prolonged interruption in the Company's operations of its facilities,
systems and business functions, including its information technology and
other business systems; security breaches, cyber attacks or fraudulent
activity; the implementation of new, or changes in the interpretation of
existing, accounting principles or financial reporting requirements;
acts of God, war or terrorism, pandemics and other events; the effect of
any of such changes on the Company's business or the markets in which it
operates; and other risks and uncertainties indicated in the Company's
filings with the Securities and Exchange Commission. These risks and
uncertainties are beyond the ability of the Company to control, nor can
the Company predict, in many cases, all of the risks and uncertainties
that could cause its actual results to differ materially from those
indicated by the forward-looking statements. When used in this release,
terms such as "believes," "estimates," "should," "could," "would,"
"plans," "expects," "anticipates," "may," "forecasts," "projects" and
similar expressions and variations as they relate to the Company or its
management are intended to identify forward-looking statements. The
Company disclaims any intention or obligation to update or revise any
forward-looking statements to reflect events or circumstances occurring
after the date of this release.
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