Short Term Lending

What is a Short Term Loan?• Small dollar loan to pay for an unexpected bill

• Instant funds to avoid more costly alternatives

• No credit check

• Average loan is around $350 for 2 weeks

• Requirements are steady income and checking account

What is the Process?•Fill out a customer application•Provide proof of income/checking account•Will loan up to 35% of GMI•Write a check post-dated for your next

payday

•Option to extend the due date for additional finance charge

•We encourage our customers to pay extra towards principal

More About Check City•Doing business in Utah for over 17 years•28 Locations in Utah•Largest short term lender in the state•Accredited with the BBB•Member of Community Financial Services

Asso.•Member of Utah Consumer Lending

Association

Finance Charge•Utah State regulations limit interest to 10

weeks •Our loans are $8 per $100 / week•Cheaper than other alternatives

▫Bounced checks▫Late payment penalties▫Ding on credit score▫Utility reconnections fees

Cost Comparison / Bank PDLCost to Salt Lake Consumers for $100.00 loan for 7 days

Payday Lender Wells Fargo Bank Mountain America CU

Product Name Cash Advance1 Direct Deposit

Advance2 My InstaCash3

Loan Amount $100.00 $100.00 $100.00

Term 7 days 7 days 7 days

Cost of Credit $8.00 $10.00 $15.00

Repayment Amount $108.00 $110.00 $115.004

APR 417.14% 521.43% 782.14% 1 According to Utah Consumer Lending Association Data as of January 1, 2010 2 According to Wells Fargo Website as of June 27, 2008: https://www.wellsfargo.com/help/faqs/dda_faqs 3 According to Mountain America Credit Union Website as of September 28, 2010: http://www.macu.com/home/personal/personalloans/personalloans 4 Federally Chartered Credit Unions do not pay taxes on profits

Cost Comparison / AlternativesPayday Advance: A Cost Comparison

Payday advance fees are lower than many of consumer’ alternatives, even when expressed as an annual percentage rate (APR) for a one week “loan”.

APR Comparisons on Payday Advance Alternatives (7-Day Term)

Sources: Avg. NSF Fee $28.23 (Bankrate.com, Dec. 2007); Avg. merchant returned check fee $26.64 (2006 CFSA fee survey); Avg. Utility late and reconnection fee (2006 CFSA fee survey); Avg. credit card late fee (Credit Cards: Increased Complexity in Rates and Fees, Government Accountability Office, 2006); Avg. overdraft protection fee (Bankrate.com, Dec. 2007); Typical one week payday advance fee (UCLA).

0.00%

500.00%

1000.00%

1500.00%

2000.00%

2500.00%

3000.00%

$100 Payday Advance $100 Overdraft Protection

Credit Card Late Fee Late/Disconnect fee on Utility

$100 Bounced Check NSF/Merchant

417.14%

1512.14%

1928.29%

2406.91%

2861.08%

APR

Credit Alternative

$100 Payday Advance

$100 Overdraft Protection

Credit Card Late Fee on $100 Bill

Late/Disconnect fee on $100 Utility Bill

$100 Bounced Check NSF/Merchant

Fee $8.00 $29.00 $37.00 $46.16 $54.87 APR 417.14% 1512.14% 1928.29% 2406.91% 2861.08%

Regulation in Utah• 10 week interest rate cap• Interest free payment plan• Annual audits by Utah State Department of

Financial Institutions (DFI)• Written and verbal disclosure of finance

charge and interest rate• Display all fees in lobby on a prominent sign

Other Services• Check Cashing• Wire Transfer Services• Tax Preparation • Auto Title Loans• Renter and Auto Insurance• Pre-Paid Debit Cards• Free Money Orders• Phone Cards• Precious Metals

The Facts•Other financial institutions find it too

expensive to market and service small loans•The average payday loan is 2-3 times less

expensive than overdraft charges•Available 7 days a week and also online at

www.checkcity.com•Loans are approved same day and the

financial dilemma is taken care of immediately

•Over a million transactions last year

Benefit to the Landlord•Your Tenant will receive a 20% discount!•Rent will be paid on time•Less hassle and stress, we take on the

risk•Avoid expensive and timely evictions

•Check City always has the Win/Win mentality

•Extension to your team

Questions / Contact Info•Please visit our website: www.checkcity.com

Check City Contacts:•Dee Dee Brownlee 801-755-0025

deedeeB@checkcity.com