Advance America Calls Latest Payday Lending Study Misleading and Inaccurate

SPARTANBURG, S.C., Nov. 30 /PRNewswire-FirstCall/ -- Advance America , the nation's largest provider of payday advances, said a report issued today by the Center for Responsible Lending (CRL) is yet another attempt by this special interest group to distribute misleading and inaccurate information to undermine consumers' ability to access funds for payday advances.

"Contrary to CRL's spin, responsible uses of the payday product provides consumers firm footing to overcome unexpected financial circumstances," said Ken Compton, CEO of Advance America. "Millions of consumers avoid excessive credit card late fees and interest, skyrocketing NSF fees, and other punitive measures for missed payments by utilizing our products. Customers have also successfully used payday advances to deal with thousands of unexpected expenses ranging from family illnesses to natural disasters."

Nearly all of Advance America's customers use payday advances responsibly and meet their obligations on time. Far from the caricature described in the CRL report, Advance America customers all have a regular source of income and active bank accounts.

Advance America has worked with state and local officials across the country to craft reasonable regulations to address the small number of customers who misuse the product and put themselves in financial jeopardy while preserving access to short-term funds for those who need, and responsibly use, the product.

"Rather than seeking to spread fear and working to eliminate financial options for consumers, CRL and other critics should focus on strategies to improve the lives of working families," Compton said. "Advance America remains ready to work with those who are genuinely concerned about the financial well being of millions of Americans."

"CRL leaders advocated that consumers rely on risky revolving debt options with high credit limits. Our customers choose payday advances in order to avoid revolving debt and the allure of easy access to a large amount of money for which they will pay interest for many years to come."

Compared to other forms of lending, payday advances can be a responsible choice because the fee does not compound interest and the full amount must be paid back within a specified period, usually two weeks. A typical payday advance of $100 carries a $15 fee.

About Advance America

Founded in 1997, Advance America, Cash Advance Centers, Inc. is the country's leading provider of payday advances with approximately 2,750 centers in 36 states. The Company offers convenient, less-costly credit options to consumers whose needs are not met by traditional financial institutions. The Company is a founding member of the Community Financial Services Association of America (CFSA), whose mission is to promote laws that provide substantive consumer protections and to encourage responsible industry practices.

Forward-Looking Statements and Information:

Certain statements contained in this release may constitute "forward- looking statements" within the meaning of federal securities laws. All statements in this release other than those relating to our historical information or current condition are forward-looking statements. For example, any statements regarding our future financial performance, our business strategy, and expected developments in our industry are forward-looking statements. Although we believe that the current views and expectations reflected in these forward-looking statements are reasonable, those views and expectations and the related statements are inherently subject to risks, uncertainties, and other factors, many of which are not under our control and may not even be predictable. Therefore, actual results could differ materially from our expectations as of today and any future results, performance, or achievements expressed directly or impliedly by the forward- looking statements. For a more detailed discussion of some of the factors that may cause our actual results to differ from our current expectations, please refer to the "Risk Factors" section of our Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2006, a copy of which is available from the Securities and Exchange Commission, upon request from us, or by going to our website: http://www.advanceamericacash.com/.