CFSA Newsroom
Press Release
Media Contacts:
Steven Schlein 202-296-0263
Lyndsey Medsker
Payday Avance Industry to Oppose the "Payday Loan Reform Act of 2009"
Guitierrez Bill Goes too Far, Sets Fees, Preempts State Laws in 34 States
Washington, D.C.— Payday lending legislation, H.R. 1214, introduced by Rep. Luis Gutierrez (D-IL) prevents competition in the marketplace, preempts the laws in 34 states and puts tens of thousands of jobs at risk, according to the Community Financial Services Association of America (CFSA), the national trade group representing more than half of the payday advance industry.
“CFSA has a long-standing record of advocating for responsible regulation of the payday advance industry and strong consumer protections for our customers,” said D. Lynn DeVault, president, CFSA, “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.
“H.R. 1214 will significantly reduce the maximum fees that have been set by the legislatures in 24 states, but does nothing to protect lenders from having their fees cut from the bottom end, even to the point of extinction in any state,” DeVault added.
