The Financial Service Centers of America responds to the
recently released report from
the CFPB on Payday Lending and Deposit Advance Products:
“FiSCA continues to support ready access to simple, convenient and
transparent short-term, small dollar credit by consumers facing
financial shortfalls. The CFPB report, which recognizes that
demand exists for small dollar credit products and that these types of
credit products can be helpful for consumers, raises concerns about
payday loans and deposit advances. We value our relationship with
the CFPB and appreciate their efforts to understand the role of small
dollar credit products and our members.
“FiSCA members offering payday advances adhere to a rigorous Code
of Conduct which can be viewed in detail on our website.
FiSCA members are licensed lenders who comply with all federal, state
and local regulations. Additionally, transparency is a key element
of the payday advance product. Before entering into a transaction, the
fees and terms of a payday advance are fully disclosed and posted in
every store, and included in every contract.
“We are still reviewing the full report and plan to discuss the
findings with the CFPB in the coming days and weeks, as we continue our
dialogue with them.”