FiSCA Responds to the CFPB Report on Payday Lending and Deposit Advance Products
The Financial Service Centers of America responds to the 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.”