About QC Holdings

QC Holdings, Inc., together with its subsidiaries, provides financial services (primarily payday loans and installment loans) through its retail branches and Internet lending operations. The company operates primarily through its wholly-owned subsidiaries, QC Financial Services, Inc.; QC Loan Services, Inc.; QC E-Services, Inc.; QC Canada Holdings Inc.; and QC Capital, Inc. QC Financial Services, Inc. is the 100% owner of QC Financial Services of California, Inc.; Financial Services of North Carolina, Inc.; QC Financial Services of Texas, Inc.; Express Check Advance of South Carolina, LLC; QC Advance, Inc.; Cash Title Loans, Inc.; and QC Properties, LLC. QC Canada Holdings Inc. is the 100% owner of Direct Credit Holdings Inc. and its wholly owned subsidiaries (collectively, Direct Credit). All of its loans and other services are subject to state regulation, which vary from state to state, as well as to the Consumer Financial Protection Bureau (CFPB) and other federal and local regulation, where applicable. Segments The company organizes its business units as three segments: Branch Lending, Centralized Lending, and E-Lending. The Branch Lending segment includes its retail branches that offer payday loans, installment loans, credit services, open-end credit, check cashing services, title loans, debit cards, money transfers and money orders. The company operated 409 short-term lending branches in 23 states, as of December 31, 2014. The Centralized Lending segment includes long-term installment loans (Signature Loans and Auto Equity Loans) that are centrally underwritten. As of December 31, 2014, the company offered signature loans and/or auto equity loans to customers in Arizona, California, Idaho, Missouri, New Mexico and Utah. The E-Lending segment includes the Internet lending operations in the United States and Canada. As of December 31, 2014, the company also offers short-term loans via the Internet to customers in Missouri and Texas. Services The company’s primary business is offering payday loans through its network of branches in the United States and over the Internet in the United States and in Canada through its subsidiary Direct Credit. In addition, the company offers other financial services, such as installment loans, credit services, open-end credit, check cashing services, title loans, debit cards, money transfers, money orders and business invoice factoring. Payday Loans To obtain a payday loan from the company via the Internet, its customers fill out and digitally sign an online application and submit various types of information required for underwriting the loan. The online credit application gives the customer a pre-approval decision and conditional credit limit. Upon final approval, loan initiation can be completed in as little as 15 minutes. Seasonality: The company’s business is seasonal due to the fluctuating demand for payday loans during the year. Historically, the company has experienced its highest demand for payday loans in January and in the fourth calendar quarter. As a result of the receipt by customers of their income tax refunds, demand for payday loans has historically declined in the balance of the first calendar quarter and the first month of the second quarter. Installment Loans The company offers branch-based installment loans to customers in its Illinois branches and in additional states. In 2012, the company introduced new installment loan products (signature loans and auto equity loans) to meet customer demand for loan options with longer terms. These new products are higher-dollar and longer-term installment loans that are centrally underwritten and distributed through its existing branch network. The installment loans are payable in monthly installments (principal plus accrued interest) with terms ranging from 4 to 48 months, and all loans are pre-payable at any time without penalty. As of December 31, 2014, the company offered its installment loan products to customers in 275 of its branches in 11 states in which the company operates. The company offers branch-based installment loans to customers in eight states across its branch network. In 2014, its signature loans were offered in approximately 200 locations in Arizona, California, Idaho, Missouri, New Mexico and Utah. As of December 31, 2014, the company offered auto equity loans to customers at 134 branches in Arizona, California, Idaho, New Mexico and Utah. Other Financial Services The company also offers other consumer and business financial services, such as credit services, open-end credit, check cashing services, title loans, money transfers, money orders and business invoice factoring. In Texas, through one of its subsidiaries, the company operates as a Credit Service Organization on behalf of consumers in accordance with Texas laws. The company also services the loan for the lender. In Virginia and Kansas, the company offers an open-end credit product through a limited number of branches. The company offered check cashing services in 346 branches, as of December 31, 2014. The company primarily offers cash payroll, government assistance, tax refund, insurance and personal checks. It also offers title loans, which are short-term consumer loans. The company offered title loans in 86 branches, as of December 31, 2014. The company is also an agent for the transmission and receipt of wire transfers for MoneyGram. Through this network, its customers transfer funds electronically to approximately 337,000 locations in 200 countries and territories worldwide. Additionally, its branches offer MoneyGram money orders. In 2011, the company began offering invoice factoring to small and medium sized business clients. As a factoring company, the company provides its business clients with working capital by purchasing their accounts receivable invoices at a discount. Regulations Regulation of Short-term Lending: The company must comply with the disclosure requirements of the Federal Truth-In-Lending Act and Regulation Z promulgated by the Board of Governors of the Federal Reserve System pursuant to that Act, as well as the disclosure requirements of state statutes (which are usually similar or more extensive then federal disclosure requirements). Additionally, the company is subject to the Equal Credit Opportunity Act, the Gramm-Leach-Bliley Act, and with respect to its credit services agreement with a third-party lender, the Fair Debt Collection Practices Act. Regulation of Credit Services Organization: The company is subject to regulation and licensing in Texas with respect to its Credit Services Organization under Chapter 393 of the Texas Finance Code, which requires the annual registration of its Credit Services Organization with the secretary of state and annual licensing with the Office of Consumer Credit Commissioner. Privacy Regulation: The company has identified its systems that capture and maintain non-public personal information, as that term is used in the privacy provisions of the Gramm-Leach-Bliley Act and its implementing federal regulations. The company is also subject to the Federal Trade Commission’s Identify Theft and Red Flag Rules. These rules require the company to implement a written program designed to detect the red flags of identity theft in its operations. History QC Holdings, Inc., formerly known as QCHI, was founded in 1984. The company was incorporated in 1998 under the laws of the state of Kansas.