How is the payday loan industry regulated?
The payday loan industry is regulated by state and federal law. Members of the Community Financial Services Association of America (CFSA) encourage further self-regulation for the benefit of payday loan borrowers. Each payday loan provider has its own set of terms and conditions in addition to state, federal and CFSA rules. It's important to know the basics about a payday loan provider so that you know exactly what policies it upholds. For example, if you choose an online payday loan provider that is not based in your state of residence and is not a CFSA member, it will have a significantly different set of regulations than a lender like Check 'n Go, who abides by each state's laws and the CFSA's Best Practices. We even provide a list of what to look for when choosing a payday loan provider.
The payday loan industry supports balanced regulations that are in customers' best interests. It strives for regulation to provide customers with privacy protection, to support customers' right to alternative financial options and to give customers the freedom of choosing a payday loan provider that best suits their individual financial needs. The CFSA works closely with state lawmakers to ensure that consumers are both protected and empowered, while also giving payday lenders every opportunity to provide responsible financial solutions.