The Community Financial Services Association of America (CFSA) released the following statement regarding the Consumer Financial Protection Bureau’s (CFPB) announcement that it is now accepting complaints related to payday loans:
“CFSA strongly supports the CFPB’s effort to address illegal or unethical lending practices, and we believe the newly launched complaint portal will help both regulators and consumers identify bad actors in the marketplace.
“In advance of the portal launch, many of our members voluntarily signed up to take part in the process by which they will work through the CFPB to quickly handle and resolve a complaint with a customer.
“CFSA and its members have a long history of working with federal and state regulators and consumers to ensure the payday loan experience is a positive one. As shown by our adherence to a strict set of mandatory Best Practices, CFSA’s efforts to protect consumers serve as the industry standard. For instance, our members:
- Collect past due accounts in a professional, fair and lawful manner. CFSA upholds the collection limitations contained in the Fair Debt Collection Practices Act (FDCPA), and a member will not use unlawful threats, intimidation, or harassment to collect accounts.
- Offer loans in a safe and responsible manner, with important consumer protections in place. These include a right to rescind, a limitation on rollovers, and an Extended Payment Plan that allows customers unable to repay their payday advance when due a longer period of time at no additional charge.
- Regularly send out debt collection scam alerts to make consumers aware of what they can do and who to contact in the event of a scam. CFSA also has a 24/7 toll-free hotline where consumers can report scams and illegal lending practices.
- Are licensed lenders and comply with all state and federal laws while providing safe and reliable loans.
“According to the Federal Trade Commission’s annual consumer complaint report in 2012, less than one percent of complaints in the “Banks and Lenders” category were regarding payday loans.”
Amy Cantu, Communications Director