The Financial Service Centers of America responds to
the recently released report from the Pew Charitable Trusts Safe, Small
Dollar Loans Research Project:
"FiSCA continues to support simple, convenient and transparent access to
short-term, small dollar credit by consumers facing financial
shortfalls. The Pew Charitable Trusts research fails to adequately
reflect the reality of the marketplace; that is, the consumer's
completely rational financial decisions to appropriately choose the
credit option that best fills their needs. Consumers deserve a wide
variety of credit options, and research has consistently shown that
nearly 20 million customers choose payday loans each year.
lending customers are a diverse group of Americans who in general are
educated, banked, and have a steady source of income. Payday
advances help customers, who are often living paycheck to paycheck,
bridge the need for small-dollar, short term credit when other options
are limited, too expensive or unavailable. Consumers frequently choose
payday loans because they are often less costly than other available
options such as incurring late fees on credit-card or bill payments,
bouncing a check, utilizing overdraft protection, or obtaining a credit
"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 genuinely extend
to Pew an invitation to engage our members in a cooperative effort to
better understand how payday advance customers use that credit option
responsibly to meet their short term credit needs."