Home of The California Financial Service Providers

New National Payday Loan Consumer Information Program

Payday lenders in California welcome the new consumer information program for payday lending customers introduced today by the Community Financial Services Association of America (CFSA).

The new CFSA program includes large postings of all transaction costs in stores; a multi-media public information campaign about the responsible use of payday loans; and a new website designed specifically to help consumers determine how the product works in their state (www.knowyourfee.org).

“It is essential we do all we can to promote responsible use of our product,” said Aggie Clark, President of the California Financial Service Providers, an association representing payday lenders in California. “Payday loans are just one of several competitive options consumers have for short term credit. We are committed to providing our customers clear and concise information about all costs before a transaction so they can make an informed, responsible decision.”

California has led the nation in regulation and oversight of the payday lending industry. Under the state’s Deferred Deposit Transaction Law:

• Payday lending stores must conspicuously post large charts of all fees;
• ‘Rollovers’ are illegal – a customer cannot take out a new loan until a prior one is paid off;
• Transactions are limited to $300;
• Loan fees are capped at 15 percent of the amount owed with NO interest or additional charges allowed; and
• Payday lenders are fully regulated by the California Department of Corporations.

Contact: Greg Larsen
916-491-4094