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Consumer Loans, Credit Quality Information And Allowances And Liabilities For Estimated Losses On Consumer Loans
 12 Months Ended
Dec. 31, 2012
Consumer Loans, Credit Quality Information And Allowances And Liabilities For Estimated Losses On Consumer Loans [Abstract]  
Consumer Loans, Credit Quality Information And Allowances And Liabilities For Estimated Losses On Consumer Loans

6. Consumer Loans, Credit Quality Information on Consumer Loans and Allowances and Liability for Estimated Losses on Consumer Loans

Consumer loan fee revenue generated from the Company's consumer loans for the years ended December 31, 2012 and 2011 was as follows (dollars in thousands):

 

   Year Ended December 31,
   2012 2011 2010
            
 Interest and fees on short-term loans $ 569,765 $ 510,881 $ 445,220 
 Interest and fees on line of credit accounts   73,572   30,590   33,655 (a)
 Interest and fees on installment loans   138,183   57,175   12,077 
 Total consumer loan revenue $ 781,520 $ 598,646 $ 490,952 
(a)a a aIncludes MLOC receivables, which are participation interests in receivables acquired from a third-party lender in connection with the MLOC services the Company offered. The Company stopped providing MLOC services on behalf of a third-party lender in October 2010 when the lender discontinued offering MLOC advances. 

The components of Company-owned consumer loan portfolio receivables at December 31, 2012 and 2011 was as follows (dollars in thousands):

 

  As of December 31, 2012
   Short-term Loans  Line of Credit Accounts  Installment Loans  Total
Current loans $ 146,732 $ 36,603 $ 117,641 $ 300,976
Delinquent loans   52,565   6,097   15,483   74,145
Total consumer loans, gross   199,297   42,700   133,124   375,121
Less: Allowance for losses   (45,982)   (11,107)   (28,614)   (85,703)
Consumer loans, net $ 153,315 $ 31,593 $ 104,510 $ 289,418
             
  As of December 31, 2011
   Short-term Loans  Line of Credit Accounts  Installment Loans  Total
Current loans $ 137,672 $ 19,384 $ 59,146 $ 216,202
Delinquent loans   56,884   2,264   10,500   69,648
Total consumer loans, gross   194,556   21,648   69,646   285,850
Less: Allowance for losses   (46,406)   (3,723)   (12,943)   (63,072)
Consumer loans, net $ 148,150 $ 17,925 $ 56,703 $ 222,778

The amount of loans on non-accrual status at December 31, 2012 and 2011 was $62.0 million and $58.3 million, respectively.

 

Changes in the allowance for losses for the Company-owned loans and the liability for estimated losses on the Company's guarantees of third-party lender-owned loans for the years ended December 31, 2012, 2011 and 2010 were as follows (dollars in thousands):

  Year Ended December 31, 2012
  Short-term Loans Line of Credit Accounts Installment Loans Total
             
Allowance for losses for Company-owned consumer loans:            
Balance at beginning of period  $ 46,406 $ 3,723 $ 12,943 $ 63,072
Consumer loan loss provision   202,008   34,793   79,057   315,858
Charge-offs    (241,641)   (31,399)   (69,438)   (342,478)
Recoveries    39,209   3,990   6,052   49,251
Balance at end of period  $ 45,982 $ 11,107 $ 28,614 $ 85,703
 
Liability for third-party lender-owned consumer loans:            
Balance at beginning of period  $ 2,617 $ - $ 445 $ 3,062
Increase in liability   317   -   119   436
Balance at end of period  $ 2,934 $ - $ 564 $ 3,498
             
  Year Ended December 31, 2011
  Short-term Loans Line of Credit Accounts Installment Loans Total
             
Allowance for losses for Company-owned consumer loans:            
Balance at beginning of period  $ 32,942 $ 3,023 $ 2,988 $ 38,953
Consumer loan loss provision   180,791   7,825   36,848   225,464
Charge-offs    (196,643)   (7,877)   (28,201)   (232,721)
Recoveries    29,316   752   1,308   31,376
Balance at end of period  $ 46,406 $ 3,723 $ 12,943 $ 63,072
             
Liability for third-party lender-owned consumer loans:            
Balance at beginning of period  $ 2,610 $ - $ 228 $ 2,838
Increase in liability   7   -   217   224
Balance at end of period  $ 2,617 $ - $ 445 $ 3,062
             
  Year Ended December 31, 2010
  Short-term Loans Line of Credit Accounts(a) Installment Loans Total
             
Allowance for losses for Company-owned consumer loans:            
Balance at beginning of period  $ 25,194 $ 1,636 $ 520 $ 27,350
Consumer loan loss provision   161,155   14,787   6,558   182,500
Charge-offs    (178,774)   (14,462)   (4,375)   (197,611)
Recoveries    25,367   1,062   285   26,714
Balance at end of period  $ 32,942 $ 3,023 $ 2,988 $ 38,953
             
Liability for third-party lender-owned consumer loans:            
Balance at beginning of period  $ 2,944 $ - $ - $ 2,944
(Decrease) increase in liability   (334)   -   228   (106)
Balance at end of period  $ 2,610 $ - $ 228 $ 2,838

Includes MLOC receivables. The Company stopped providing MLOC services in the United States on behalf of a third-party lender in October 2010 when the lender discontinued offering MLOC advances.

In connection with its CSO programs, the Company guarantees consumer loan payment obligations to unrelated third-party lenders and is required to purchase defaulted loans. The guarantee represents an obligation to purchase specific loans that go into default. Short-term loans that are guaranteed generally have terms of less than 90 days. Secured auto equity loans that are guaranteed generally have terms up to 42 months. As of December 31, 2012 and 2011, the amount of consumer loans guaranteed by the Company was $64.7 million and $59.4 million, respectively, representing amounts due under consumer loans originated by third-party lenders under the CSO programs. The estimated fair value of the liability for estimated losses on consumer loans guaranteed by the Company of $3.5 million and $3.1 million as of December 31, 2012 and 2011, respectively, is included in “Accounts payable and accrued expenses” in the accompanying consolidated balance sheets.