CFSA Opposes Payday Loan Reform Act

Group says bill puts jobs at risk

Employees and consumers picket against payday loan reform.

Community Financial Services Association of America says the Payday Loan Reform Act of 2009 goes too far.

The bill, HR 1214, prevents competition in the marketplace, preempts the laws in 34 states and puts tens of thousands of jobs at risk, the organization says.

President advocates responsible lending

CFSA president D. Lynn DeVault says his group has a long-standing record of advocating for responsible regulation of the payday advance industry, and he intends to continue this advocacy.

“But this bill goes too far, most notably in establishing a national fee cap for payday loans, one small segment of the short-term credit market. We’re aware of no other short-term credit product that has a national fee cap, certainly not bank and credit union NSF and overdraft protection fees or credit card late fees,” said DeVault.

One-way street

DeVault adds that the bill “does nothing to protect lenders,” and could even drive payday lenders “to extinction” in many states. For the industry, this would mean jobs and companies lost. ... click here to read the rest of the article titled "CFSA Opposes Payday Loan Reform Act"