Storefront Payday Lenders Statement on the CFPB's First Field Hearing This Week

WASHINGTON, Jan. 23, 2012 /PRNewswire-USNewswire/ -- The following comments can be attributed to D. Lynn DeVault, Board Chair of the Community Financial Services Association of America (CFSA):

"We appreciate the Consumer Financial Protection Bureau's (CFPB) willingness to hear from all stakeholders as it develops plans to regulate the small loan market. Storefront lenders made 110 million loans to nearly 20 million American families last year. At a time when access to small dollar loans is more vital than ever, developing strong, uniform, research-based rules will be a benefit to consumers.

"State governments currently regulate all aspects of payday advance lending in every state where payday advance loans are available. We have long worked with our state regulators in all 32 states where we operate to ensure compliance with state licensing and renewal requirements, supervision and examination procedures, and other consumer protection laws and regulations. Our member companies are committed to following all state and federal laws, as well as adhering to our association's strict set of Best Practices that include truthful advertising, appropriate collection practices, and providing an Extended Payment Plan to customers who are unable to repay their payday advance loan.

"The Bureau's new Short-Term, Small-Dollar Lending Examination Procedures is now published and our members look forward to working with our new federal regulator to confirm their compliance with all federal consumer financial laws and regulations." 

About the Community Financial Services Association of America

The Community Financial Services Association of America (CFSA) is the only national organization dedicated solely to promoting responsible regulation of the payday advance industry and consumer protections through CFSA's Best Practices. As such, we are committed to working with policymakers, consumer advocates, and CFSA member companies to ensure that the payday advance is a safe and viable credit option for consumers.

SOURCE Community Financial Services Association of America