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8-K - LIVE FILING - DFC GLOBAL CORP. | htm_48022.htm |
Contact:
ICR
Investor Relations
Garrett Edson: (484) 320-5800
Media
Phil Denning: (203) 682-8200
FOR IMMEDIATE RELEASE
DFC GLOBAL CORP. ANNOUNCES RECEIPT OF PURPORTED MILES FUNDING TERMINATION NOTICE
Berwyn, Pennsylvania July 2, 2013 DFC Global Corp. (NASDAQ: DLLR), a leading international diversified financial services company serving primarily unbanked and under-banked consumers for over 30 years, today announced that its subsidiary, Dealers Financial Services, LLC (DFS) , received from U.S. Bank a purported termination notice, effective immediately, of the banks obligations to fund loans under the Military Installment Loan and Education Services, or MILES®, program, for which DFS is a service provider. The Company previously disclosed that DFS had received a termination notice from the bank effective September 13, 2014. DFS believes that the new termination notice is not effective and has demanded that the bank fulfill its MILES funding obligations. Should it not do so, DFS ability to process loan applications will be adversely affected until it completes its negotiations with potential lending partners that the Company believes will provide more competitive financing alternatives to DFS service member customers.
About DFC Global Corp.
DFC Global Corp. is a leading international diversified financial services company serving
primarily unbanked and under-banked consumers who, for reasons of convenience and accessibility,
purchase some or all of their financial services from the Company rather than from banks and other
financial institutions. As of March 31, 2013, the Companys global retail operations consisted of
1,457 retail storefront locations, of which 1,420 are company-owned stores, conducting business
primarily under the names The Money Shop®, Money Mart®,
Insta-Cheques®, Suttons and Robertsons®, The Check Cashing Store®,
Sefina®, Helsingin PanttiSM, Optima®,
MoneyNow!®, and Super Efectivo®. In addition to its retail stores, the
Company also offers Internet-based short-term single-payment consumer loans in the United Kingdom
primarily under the brand names Payday Express® and PaydayUK®, in Canada
under the Money Mart name, in Finland, Sweden, Poland, Czech Republic and Spain under the
Risicum®, OK Money® and MoneyNow!® brand names. For more
information, please visit the Companys website at www.dfcglobalcorp.com.
The Companys products and services, principally its short-term single-payment consumer loans, secured pawn loans, check cashing services and gold buying services, provide customers with immediate access to cash for living expenses or other needs. The Company strives to offer its customers additional high-value ancillary services, including Western Union® money order and money transfer products, foreign currency exchange, reloadable VISA® and MasterCard® prepaid debit cards and electronic tax filing. In addition to its core retail products, the Company also provides fee-based services in the United States to enlisted military personnel applying for loans to purchase new and used vehicles that are funded and serviced under agreements with third-party lenders through the Companys branded Military Installment Loan and Education Services, or MILES® program.
Forward-Looking Statements
This news release contains forward-looking statements, including, among other things, statements
regarding the following: pending or recent acquisitions and their expected benefits; the Companys
future results, growth, guidance and operating strategy; the global economy; the effects of
currency exchange rates on reported operating results; the regulatory environment in Canada, the
United Kingdom, the United States, Scandinavia and other countries; the impact of future
development strategy, new stores and acquisitions; litigation matters; financing initiatives; and
the performance of new products and services. These forward-looking statements involve risks and
uncertainties, including risks related to: the regulatory environments, including reviews of our
operations by the CFPB in the U.S. and the Office of Fair Trading in the U.K., and the effect of
legislation in Finland that will restrict our current business in that country; current and
potential future litigation; the identification of acquisition targets; the consummation of pending
acquisitions; the integration and performance of acquired stores and businesses; the performance of
new stores and internet businesses; the impact of debt and equity financing transactions; the
results of certain ongoing income tax appeals; the effects of new products and services on the
Companys business, results of operations, financial condition, prospects and guidance; the effect
of the termination of our relationship with the third-party national bank that currently funds a
portion of the MILES program loans and our ability to replace such lending source on acceptable
terms; and uncertainties related to the effects of changes in the value of the U.S. Dollar compared
to foreign currencies. There can be no assurance that the Company will attain its expected results,
successfully consummate pending acquisitions, successfully integrate and achieve anticipated
synergies from any of its acquisitions, obtain acceptable financing, or attain its published
guidance metrics, or that ongoing and potential future litigation or the various FDIC, CFPB, U.S.
Federal or state, U.K., Canadian, Scandinavian, European Union, or other foreign legislative or
regulatory activities affecting the Company or the banks with which the Company does business will
not negatively impact the Companys operations. A more complete description of these and other
risks, uncertainties and assumptions is included in the Companys filings with the Securities and
Exchange Commission, including those described under the heading Risk Factors on the Companys
Annual Report on Form 10-K for the Companys fiscal year ended June 30, 2012. You should not place
any undue reliance on any forward-looking statements. The Company disclaims any obligation to
update any such factors or to publicly announce results of any revisions to any of the
forward-looking statements contained herein to reflect future events or developments.