World Finance: A History of Universal City and Financial Services

Introduction

World Finance is a financial services company offering personal installment loans and related services. This article explores the history of related financial organizations, including World Marketing Alliance (WMA), and the services offered by World Finance, with a focus on its operations and impact.

The Origins of World Marketing Alliance (WMA)

World Marketing Alliance (WMA) was founded in 1991 by Hubert Humphrey after his departure from Primerica (formerly A.L. Williams & Associates). Humphrey's vision was to provide baby boomers with solutions for wealth creation and tax protection, promoting the "buy term and invest the difference" philosophy.

Development of the Business Format System (BFS)

While at A.L. Williams & Associates, Humphrey created and introduced the Business Format System (BFS), a business sales and recruiting methodology. He continued to develop this methodology within WMA, which became a key component of the company's growth.

Expansion and Growth

WMA expanded its operations to several countries, including Canada, Taiwan, Mexico, Puerto Rico, Guam, and the Philippines. The company held its first convention in Las Vegas in 1992. In 1999, WMA reported significant sales figures, including $200 million in variable life premiums and $400 million in mutual fund sales.

Headquarters and Leadership

On March 23, 1998, WMA Executive World Headquarters opened in Duluth, Georgia. The company also introduced MD TV, a private satellite television network, during this period. Humphrey's original logo for WMA was later used in his subsequent companies, World Leadership Group (WLG) and Hegemon Group International (HGI).

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Non-Compete Agreement

As part of the conditions of the sale of WMA, Hubert Humphrey was placed under a non-compete agreement, preventing him from participating in the insurance industry until 2013.

Regulatory Issues and Controversies

World Financial Group (WFG) and its related entities have faced regulatory scrutiny and disciplinary actions over the years. These issues have ranged from reporting failures to agent misconduct.

NASD Fine for World Group Securities (WGS)

In November 2004, World Group Securities (WGS) was fined $150,000 by the NASD for failing to report 61% of disciplinary reports on time. These reports included customer complaints, disciplinary actions, and criminal charges and convictions.

Utah Division of Securities Lawsuit

In October 2006, the Utah Division of Securities suspended two state licenses and filed a lawsuit against two WGS agents from Utah County, Utah: Andrew J. Moleff and John F. Hoschouer. They were ordered to pay a combined fine of $155,000 for misrepresenting their financial talents during investment seminars for seniors. The agents were accused of overstating their asset management skills and making false claims about Moleff being the "number one financial adviser" of WGS.

Agent Misconduct in Canada

In January 2018, 12 life insurance agents working at the same WFG brokerage in British Columbia, Canada, had their licenses revoked for conspiring to cheat on qualification tests. In December 2018, 12 former Mississauga WFG agents in Ontario, Canada, were fined $865,000 for falsifying KYC (know your client) information on 95 documents and committing other offenses to facilitate leveraging investments.

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FSRA Fine for Unlicensed Agent Compensation

In May 2024, the Financial Services Regulatory Authority (FSRA) fined WFG $50,000 for compensating an unlicensed agent in Canada who sold 58 life insurance policies between October 2021 and July 2022.

World Finance Services

World Finance offers personal installment loans designed to provide customers with accessible and manageable financial solutions. The company emphasizes transparency, budget-friendly terms, and credit-building opportunities.

Personal Installment Loans

World Finance provides personal installment loans with fixed interest rates and affordable monthly payments. Most applications can be approved in about an hour. Loan approval and terms depend on the applicant's state of residence and their ability to meet credit standards, including credit history, income after monthly expenses, and availability of collateral. However, not all applicants will qualify for a loan or the most favorable terms. Loan proceeds cannot be used for postsecondary educational expenses, business or commercial purposes, or for gambling or illegal activities.

Emergency Loans

World Finance offers emergency loans to provide customers with quick access to funds during unexpected financial crises. These loans can provide same-day cash to address urgent needs.

Credit Building Loans

World Finance provides loans designed to help customers improve their credit scores. Consistent, on-time payments on these loans can positively impact a customer's credit history and overall financial health.

Debt Consolidation Loans

World Finance offers debt consolidation loans to help customers manage and simplify their existing debts. These loans can streamline multiple debts into a single, more manageable payment.

Loan Payment Options

World Finance offers multiple convenient ways for customers to make loan payments:

Online: Payments can be made through the My World Account portal, with options for one-time payments or recurring payments.
By Phone: Customers can call 844-967-5315 to make payments 24 hours a day, 7 days a week.
In Person: Payments can be made at any of the over 1,000 World Finance locations in 16 states.

Financial Literacy and Community Engagement

Beyond providing financial products, there is evidence World Finance engages in financial literacy initiatives and community support.

Financial Literacy Campaign

World Finance supports campaigns aimed at improving financial literacy. These initiatives often target underserved populations, providing guidance and resources for better financial management.

Community Involvement

World Finance and its employees are involved in local communities. This includes providing support during hard times and offering professional and helpful service.

The Role of African Americans in Finance

The history of African Americans in finance is marked by resilience, innovation, and a response to discriminatory practices. Despite facing significant barriers, African Americans established their own banks and insurance companies to serve their communities.

Early Banking Initiatives

The Freedman’s Bank, established in 1865, aimed to help newly freed slaves build assets. However, it ultimately failed due to speculation and fraud by white managers, leading to financial losses and a loss of trust in the banking system. Between 1888 and 1934, 134 black-owned banks were formed, but only nine survived the Great Depression.

Insurance Industry

The insurance industry historically discriminated against African Americans, influenced by studies that falsely claimed African Americans were more prone to disease. Despite this, African American entrepreneurs established successful insurance companies that provided crucial services to their communities.

Prominent Figures

Several African Americans made significant contributions to the finance industry, including:

Jesse Binga: The first black banker in Chicago, whose bank was located in the segregated Black Belt.
John Hervey Wheeler: President of Farmers and Merchants Bank and an influential leader in the civil rights movement.
Anthony Overton: A leading African American entrepreneur with a Chicago-based empire in personal care products, media, insurance, and finance.
Alonzo Herndon: Founder of the Atlanta Life Insurance Company, one of the largest Black financial institutions in America.
Maggie L. Walker: Founder and President of the St. Luke Penny Savings Bank, the first African American woman to hold this role.

Modern Initiatives

Organizations like the Association of Black Accountants and Financial Professionals (NABA) continue to bridge the opportunity gap for black professionals in accounting, finance, and related business professions.

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