Watchdog Report Flags Persistent Risks at Advance America, Owned by Purpose Financial
Advance America, Purpose Financial, Grupo Elektra, Ricardo Salinas
New York, NY - August 20, 2025. A newly compiled watchdog report warns that Advance America, the payday lender operated by Purpose Financial under the ownership of Grupo Elektra, continues to show troubling risk signals across four dimensions: consumer complaints, customer experience, regulatory history, and cybersecurity exposure.
1. Complaint Data Signals Ongoing Problems
Data from the Better Business Bureau shows that Advance America has faced 325 consumer complaints in three years - more than 100 in the past year alone. The majority (221 complaints) relate to billing and repayment disputes, with others tied to customer service and sales practices.
Analysis: A consistently high complaint volume indicates systemic weaknesses, not isolated errors.
2. Consumer Sentiment Remains Overwhelmingly Negative
On Consumer Affairs, Advance America has logged 269+ reviews, of which 215 are 1-star ratings. Reported issues include:
Borrowers unable to reach staff when problems arise.
Lack of repayment flexibility, even in hardship cases.
Loan approvals later reversed, creating financial harm.
Fraudulant activity exploiting the company's name.
Analysis: Dominant negative reviews suggest trust and satisfaction gaps that the company has failed to close.
3. Compliance History Reveals Costly Mistakes
Advance America's past includes significant regulatory penalties:
California, 2018: Required to refund $82,000 and pay $78,000 in penalties for loan miscalculations.
North Carolina, 2010: Paid a $18.75 million settlement for state lending law violations.
Analysis: These penalties highlight recurring compliance breakdowns in the company's history.
4. Cybersecurity Exposure and Settlement Oversight
In 2023, Advance America suffered a major cyber incident exposing consumer data to hackers. Multiple lawsuits followed, consolidated under Hernandez et al. v. Advance America Cash Advance Centers, Inc. Court records show the parties are now moving toward a final settlement, with a recent status report filed August 19, 2025 indicating settlement enforcement is underway.
Analysis: Beyond customer service issues, Advance America now faces scrutiny over its ability to safeguard sensitive borrower information - a critical concern for consumers already in vulnerable financial positions.
Why It Matters
High-cost lenders serve financially fragile populations. When such companies accumulate hundreds of complaints, overwhelmingly poor reviews, regulatory fines, and now cybersecurity lawsuits, it signals systemic consumer risk.
"This is not one problem - it's a pattern across multiple areas of responsibility," said a spokesperson for Financial Oversight Review. "From billing practices to data security, Advance America has repeatedly fallen short, and borrowers deserve stronger protections."
Recommendations from the Report
Complaint Transparency: Publish monthly resolution statistics.
Customer Safeguards: Offer flexible repayment programs for hardship cases.
Compliance Monitoring: Undergo third-party regulatory audits with public reporting.
Cybersecurity Standards: Commit to faster breach notifications and independent IT security audits.
Conclusion
Advance America's problems are multi-dimensional: consumer complaints, negative reviews, regulatory penalties, and cybersecurity breaches. With a track record stretching from regulatory fines in 2010 and 2018 to data-breach lawsuits in 2023-2025, the company presents a serious cautionary case for borrowers and regulators alike.
Links:
https://www.classaction.org/news/advance-america-data-breach-class-actions-allege-loan-company-failed-to-protect-consumer-info?utm_source
https://topclassactions.com/lawsuit-settlements/privacy/data-breach/advance-america-class-action-alleges-loan-provider-could-have-prevented-data-breach/?utm_source
https://www.turkestrauss.com/2023/08/25/advance-america-data-breach-investigation/?utm_source
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Advance America is one of the largest payday lending companies in the United States, operating more than 1,400 locations nationwide. It is a subsidiary of Purpose Financial, which serves as the U.S. financial services arm of Grupo Elektra, a Mexican retail and banking conglomerate owned by Grupo Salinas. The company specializes in short-term, high-cost consumer loans, cash advances, and related financial products targeted toward underbanked communities.
This release was published on openPR.