Advance Financial
 | |
 Advance Financial Store | |
| Company type | Privately Held Company |
|---|---|
| Industry | Payday loans |
| Founded | 1996 |
| Headquarters | Nashville, Tennessee, United States |
Area served | United States |
| Website | Official website |
Established in 1996, Advance Financial is a payday lending firm specializing in high-interest loans, headquartered in Nashville, Tennessee. The company provides payday advances up to $4,000 with interest rates reaching as high as 279.5%. It has initiated more than 110,000 legal actions against borrowers and plays a significant role as a political contributor in Tennessee, actively advocating for the loosening of payday loan regulations.
History
Originally launched under the name Advance Pay Day by Michael and Tina Hodges in the 1990s in Nashville, the company operated roughly twenty-four branches and earned $15 million in revenue by 2010.
After the creation of the Consumer Financial Protection Bureau and the imposition of stricter payday lending regulations, Advance Financial established a political action committee and engaged lobbyists within Tennessee. This lobbying effort influenced legislation signed by Governor Bill Haslam that eased restrictions on payday lending. Consequently, the company experienced rapid growth, expanding to 105 locations by the late 2010s and achieving $392 million in revenue by 2019.
The Hodges couple has contributed over $3 million to Donald Trump’s presidential campaigns. In 2019, Michael Hodges acknowledged that these donations enhanced his access to Trump. Following this, the Trump administration appointed a new director for the CFPB who reversed numerous payday lending regulations.
Associations
Advance Financial holds membership in industry groups such as the Community Financial Services Association of America, Financial Service Centers of America (FiSCA)—where founders Mike and Tina Hodges serve on the board—and the Online Lenders Alliance.
Certain offerings from the company, including payday loans with annual percentage rates up to 450%, have attracted criticism for exploiting financially vulnerable consumers.