The payday advance service emerged in the early ‘90s, and grew as a result of strong consumer demand and changing conditions in the financial services marketplace. A number of changes in the marketplace prompted industry growth, including:
The exiting of traditional financial institutions from the small-denomination, short-term credit market—a change largely due to its high cost structure;
The soaring cost of bounced checks and overdraft protection fees, late bill payment penalties, and other informal extensions of short-term credit; and
The continuing trend toward regulation of the payday advance service, providing customers with important consumer protections.
Today, payday loan stores fill the need for small dollar, short-term credit in communities throughout the country. Industry analysts estimate that 20,600 payday advance locations across the United States extend about $38.5 billion in short-term credit to millions of working Americans in 19 million households who experience cash-flow shortfalls. In addition to being a valuable source of credit for many consumers, the payday loan industry makes significant contributions to the U.S. and state economies employing more than 50,000 Americans who earn $2 billion in wages and generating more than $2.6 billion in federal, state, and local taxes.
In response to the industry’s growth, CFSA was founded to help ensure consumer confidence in, and long-term success of, the payday advance industry. CFSA member companies represent more than half of the payday advance industry. The association’s Board of Directors is comprised of industry leaders from large and small, publicly traded and privately held companies.
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Managing household finances can be a daunting task. However, by using solid budgeting and savings techniques, you can accomplish major financial goals. In the Customer Resource Center, CFSA offers a variety of payday advance resources that support and encourage responsible lending practices, and highlight the vital role of our members’ stores in neighborhoods near you.
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Here you will find an aggregate of industry research, comprehensive data, and benchmarking tools from the short-term lending industry. They cover all payday advance business areas – consumer demographics, media hits, the latest policy initiatives, among others. Click here to access to the partner's resource library.
CFSA works at the federal, state, and local levels educate legislators and regulators about the role of payday advances in the broader financial services arena. This section provides resources for policymakers who believe in access to credit, want to preserve financial options and ensure balanced, substantive consumer protections. Click here to enter the Policymaker Resource Library.