Community Financial Services Association of America
The Community Financial Services Association of America (CFSA) is a trade association in the United States representing the payday lending industry. Controversy The payday lending industry has been the source of ongoing controversy due to its lobbying tactics and business practices that The New York Times chief financial correspondent Floyd Norris bluntly calls "predatory lending". ”Financial quicksand” A central criticism of the CFSA member companies has been that payday loans are "designed to keep borrowers in debt". While payday loans are marketed as “one time” or “emergency loans”, the nonprofit Center for Responsible Lending has found that "borrowers who receive five or more loans a year account for 90 percent of the lenders’ business", and "lenders…collect 90 percent of their revenue from borrowers who cannot pay off their loans when due, rather than from one-time users dealing with short-term financial emergencies". The U.S. PIRG has documented how payday loans create a “debt cycle” through high cost rollovers, additional fees, and debt collection. Payday lending practices have fueled calls for increased governmental regulation, and several states have taken legislative action to cap interest rates or outlaw payday lending altogether. CFSA states that it is open to working with state regulators and