Storefront Payday Lenders Applaud FTC Action Against Scammers

April 19, 2012 (PRLEAP.COM) Business News
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.

About the Community Financial Services Association of America
The Community Financial Services Association of America (CFSA) is the only national organization dedicated solely to promoting responsible regulation of the payday advance industry and consumer protections through CFSA's Best Practices. As such, we are committed to working with policymakers, consumer advocates, and CFSA member companies to ensure that the payday advance is a safe and viable credit option for consumers.