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About the Payday Advance Industry

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.

Affected by Natural Disasters

Affected by Natural Disasters

University of Chicago, finds that the existence of payday lenders benefits communities struck by natural disasters.Continue Reading

Best Practices

Best Practices

CFSA ensures responsible conduct among lenders, protects borrowers’ rights, and encourages self-governance of the payday advance industry.Continue Reading

Better Financial Footing

Better Financial Footing

If you are a consumer and have found yourself in financial straits, here are a few quick tips on how to rebuild or repair your credit history.Continue Reading

Can’t Compete

Can’t Compete

While FDIC considers its Small Loan Program a success, small dollar loans from banks cannot compete with the cost and ease of payday loans.Continue Reading

Consider the Facts

Consider the Facts

Many prominent researchers have examined the payday advance, here is a look at some key findings.Continue Reading

Credit Unions Fall Short

Credit Unions Fall Short

The reasons why traditional financial institutions have been reluctant to offer payday loan alternative products.Continue Reading

Customer Demographics

Customer Demographics

Our customers are the face of America: Men and women with families and jobs. Continue Reading

Know Your Fee

Know Your Fee

The important info you need about the states in which the payday lending industry operates. Continue Reading

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Connecting With Our Communities

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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TO OUR MEMBERS

Thanks for visiting the CFSA Web site. CFSA values you as a member and is constantly seeking new ways to enhance your membership experience. As such, the information in this section is restricted to members only. If you are a CFSA member, please enter your username and password. If you have forgotten your login info, send an e-mail to Member@CFSAA.com.

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TO OUR PARTNERS

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.

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For Our Policymakers

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.