Cash Connection

Submitted by: Submitted by

Views: 711

Words: 849

Pages: 4

Category: Business and Industry

Date Submitted: 11/12/2012 02:07 PM

Report This Essay

Cash Connection


Allen Franks started cash Connection in 1986, and he opened his first store in Shreveport, Louisiana. Services like Cash Connection grew in the 1990’s as a result of the increase in consumer demand and the change in the financial services market. Also, more checks were bouncing and the cost of over draft protection fees was to high for some people. The pressure of finances on people who live from paycheck to paycheck takes quite a toll on them. Some customers just needed a short-term loan to cover unexpected expenses, which has resulted in payday loan companies seeing an all-time high profit margin and flourishing beyond what they originally had anticipated. The fact that companies like Cash Connection offer quick and easy loans with few requirements is attracting customers. Cash Connection also provides check cashing, prepaid phone cards, bill payment services, and money orders from Western Union. As time went on, customers were being trapped by rollover and paying Cash Connection more with each loan.


Allen Frank’s problem here is that he needs to differentiate Cash Connection and make it the top choice for consumers who want a payday loan. He must do this while staying in line with the federal government regulations. The federal government has imposed regulations on financial companies like his and this has made operating his business difficult. Back in the 1980’s, very little restrictions existed for the payday loan industry, resulting in the spring up of payday loan stores across the country as well as increased competition in the industry. This all changed when the federal government cracked down on payday loan companies as a consequence of the way they begun taking advantage of customers. Rollover fees could trap customers and get them into more financial debt. This caused the federal government to look closely at the industry and implement regulations on how payday companies could operate their business. This...