Category: CFSA

  • Payday industry fights back

    The New York Times reports “A Consumer Bill Gives Exemption on Payday Loans” that Senator Bob Corker of Tennessee is trying to remove a provision from the draft that would empower the CFPA to oversee payday lenders.

    Payday Pundit highlighted this statement by CFSA spokesman Steven Schlein:

    “The banks caused the financial meltdown, and they’re spending millions and millions to spare themselves from tighter regulation while throwing the consumer lending industry under the bus,” he said. “They’re trying to divert attention to us.”

  • Tim Miller’s letter to the Wall Street Journal

    Tim Miller’s letter to the Wall Street Journal takes a mathmatical approach to the whole triple digit APR issue. This is the biggest argument consumer groups make.

    A payday loan is intened to cover a borrower for a short period of time. When you annualize a product that spans between 2-10 weeks, it does not tell the whole story.

    The CFSA has best practices in place. One of the requirements of their members is that a loan can only be extended 4 times for a total of 5 concurrent loans.