Washington — The Community Financial Services Association of America (CFSA), the national trade association of reputable and regulated storefront payday lenders, today applauded the Federal Trade Commission's (FTC) success in stopping an illegal debt collection operation which tricked people into paying off phantom payday loans. The scam bilked consumers out of more than $5 million over two years.
“CFSA members and federal and state officials all agree on the urgent need to protect consumers from scammers,” said D. Lynn DeVault, Board Chair of CFSA. “We applaud the recent federal enforcement actions against these unscrupulous lenders and debt collectors, who up to now have operated illegally and largely beyond the reach of regulators."
All members of the CFSA operate by a code of Best Practices, including the collection of past due accounts in a professional and lawful manner. CFSA members adhere to the Fair Debt Collection Practices Act and do not use threats, intimidation, or harassment to collect accounts. Consumers seeking short-term credit and the assurance of fair collections should look for lenders displaying the CFSA Member Seal in their store or on their website.