Payday Loans: A National Industry

An OppLoans eBook

The information contained herein is for educational purposes only and is not legal advice. You should consult your own attorney or seek specific advice from a legal professional regarding your particular situation.

Payday Loans: A National Industry

As the industry grew, payday loan business owners became more organized and began to work together. The Community Financial Services Association of America (CFSA) was established in 1999 to enforce Best Practices for its members who are small-dollar, short-term lending organizations [8].

The CFSA asserts that small-dollar lenders provide essential financial services in underserved communities. The CFSA also asserts that regulations banning small-dollar loans or placing ceilings on fees and rates for small-dollar loans “typically produce negative unintended consequences that vastly exceed any social benefits gained from the legislation.” The association maintains that borrowers can avoid bank overdraft fees and bank charges by receiving payday loans. [9]

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