|
DALLAS,
Jan 1, 2003 /PRNewswire-FirstCall via COMTEX/ -- ACE
Cash Express, Inc. (Nasdaq:
AACE), the nation's
largest check-cashing chain and a significant
provider of related retail financial services, is
pleased to announce that it has resolved all of its
pending regulatory matters with all states regarding
the Goleta National Bank (GNB) loan product. The
Company reached agreements with the states of
Florida and Ohio to resolve the matters surrounding
the GNB loan product. In addition, ACE has completed
the transition from the GNB short-term consumer loan
product (up to a $500, 14-day, unsecured bank loan)
to a similar state regulated short-term consumer
loan product. These two state-settlements follow the
recent agreement reached with North Carolina to
conclude ACE's loan-related regulatory issues."Our
team has done an excellent job of securing the
licenses and putting the systems in place to offer
the state regulated loan products. This included
resolving the regulatory matters and transitioning
to the state regulated models for the loan
business,"stated Jay B. Shipowitz, president and
chief operating officer of ACE."Although the
decision to offer the GNB loan product provided the
Company with economies of scale and the benefits of
managing one product, over time, we realized that
offering the GNB loan product was not the correct
long-term strategy for ACE. We look forward to
operating in a more stable regulatory environment
and focusing on the customer by adding new products
and providing excellent service."Donald H. Neustadt,
chief executive officer of ACE, stated,"It is
important to have all of the regulatory matters
behind us so that we can focus on the business. This
strategy allows us to operate with less risk and
more stability, which we believe will open up
opportunities in the credit markets, as well as
reduce the uncertainty of regulatory issues. Our
business continues to be strong, and we believe that
this is the best course of action for the growth of
the Company and the benefit of our shareholders."ACE
has agreed with the Attorney General and the
Department of Business and Finance of the State of
Florida to settle and resolve all pending disputes
with the State and to receive all licenses from the
State necessary for ACE to offer its full range of
consumer financial services in Florida. The Attorney
General agreed to dismiss all of its remaining
claims in the pending lawsuit against ACE, and that
lawsuit will be terminated. In exchange for the
licenses and full releases from the Attorney General
and the Department of Business and Finance, ACE
forgave amounts due from the Attorney General (for
court costs and attorneys' fees) that had been
awarded to ACE by the trial court in the Clement
lawsuit, agreed to pay $250,000 to the University of
Florida law school and agreed to pay $250,000 to the
Department of Business and Finance.
In the agreement between ACE and the Ohio Division
of Financial Institutions, the Superintendent agreed
to withdraw the pending administrative proceeding
and to issue the licenses necessary for ACE to make
small short- term loans under the Ohio Small Loan
Act. As part of the agreement, ACE agreed to pay
$16,000 in licensing fees to the Division of
Financial Institutions and to mail GNB's previous
Ohio customers coupons worth approximately $250,000
that they may redeem in discounts on future loans
from ACE.
Forward-looking Statements
The statements made above in this release contain
certain"forward-looking statements"within the
meaning of Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. These statements
are generally identified by the use of words such
as"expect,"RETURN RETURN"anticipate,"RETURN
RETURN"estimate,"RETURN RETURN"believe,"RETURN
RETURN"intend,"RETURN RETURN"plan,"RETURN
RETURN"should,"RETURN RETURN"would,"and terms with
similar meanings.
Although ACE Cash Express, Inc. believes that the
current views and expectations reflected in these
forward-looking statements are reasonable, those
views and expectations, and the related statements,
are based on the assumptions of ACE's management and
are inherently subject to risks, uncertainties, and
other factors, many of which are not under ACE's
control and may not even be predictable. Any
inaccuracy in the assumptions, as well as those
risks, uncertainties, and other factors, could cause
the actual results to differ materially from those
projected in the forward-looking statements. Those
risks, uncertainties, and factors include, but are
not limited to: the matters described in ACE's
Annual Report on Form 10-K for its fiscal year ended
June 30, 2002, and its other public filings; ACE's
relationships with Travelers Express Company, Inc.
and its affiliates and with ACE's bank lenders;
ACE's relationship with Goleta National Bank and the
cessation of that relationship; federal and state
governmental regulation of check-cashing, short-term
consumer lending, and related financial services
businesses; the results of litigation regarding
short-term consumer lending activities; theft and
employee errors; the availability of adequate
financing, suitable locations, acquisition
opportunities and experienced management employees
to implement the ACE's growth strategy; increases in
interest rates, which would increase ACE's borrowing
costs; the fragmentation of the check- cashing
industry and competition from various other sources,
such as banks, savings and loans, short-term
consumer lenders, and other similar financial
services entities, as well as retail businesses that
offer products and services offered by ACE; the
terms and performance of third-party products and
services offered at ACE locations; and customer
demand and response to products and services offered
at ACE locations.
ACE does not assume, but expressly disclaims, any
obligation to update or revise any of these
forward-looking statements, whether because of
future events, new information, a change in ACE's
views or expectations, or otherwise. ACE makes no
prediction or statement about the performance of
ACE's Common Stock.
About ACE Cash Express, Inc.
ACE Cash Express, Inc. is headquartered in Irving,
Texas and is the largest owner, operator and
franchiser of check-cashing stores in the United
States. Founded in 1968, the Company has a total
network of 1,171 stores, consisting of 983
company-owned stores and 188 franchised stores in 35
states and the District of Columbia. ACE also
maintains automatic check-cashing machines, which
provide financial services without the need for a
service associate, at 22 company-owned stores and,
during the tax season, at more than 200 H&R Block
retail offices. ACE offers a broad range of
check-cashing and other consumer financial services
and is one of the largest providers of MoneyGram
wire transfer transactions. In addition, ACE offers
money orders, bill payment services, and prepaid
local and long distance telecommunication services.
Small, short-term consumer loans are also available
to customers at various ACE company-owned stores.
The company's website is found at
www.acecashexpress.com .
SOURCE ACE Cash Express, Inc.
CONTACT: Eric Norrington, Vice President of
Communications,
+1-972-550-5032, or enorrington@acecashexpress.com ,
or Darla Ashby, Director
of Public Affairs, +1-972-550-5037, or dashby@acecashexpress.com
, both of ACE
Cash Express, Inc.
URL: http://www.acecashexpress.com
http://www.prnewswire.com
Copyright (C) 2003 PR Newswire. All rights reserved.
|
