Financial Service Centers of America
“Computing charges on an annual basis simply does not make sense in evaluating the real cost of a short term product whose anticipated usage will seldom exceed 14 to 30 days at the most. Using an APR analysis for deferred deposit service charges is comparable to a pedestrian in New York City hailing a cab and asking about the fare to San Francisco. There is a theoretical fare, just as there is a theoretical APR for a deferred deposit service advance, but nobody enters into a transaction with the intent to pay or receive anything like that amount.”
This quote appears in the paper Freedom of Choice for Consumers: The Truth about Deferred Deposit Services – A Reasoned Response to the CFA’s Misrepresentations by the Financial Service Centers of America (FiSCA)…
In the paper, FiSCA argues that the Consumer Federation of America (CFA) misrepresents the payday loan industry:
“Deferred deposit services have been pilloried recently in a smear campaign orchestrated in large part by the [CFA] and its affiliates… This initiative has been fueled by gross misrepresentations of fact, obviously false allegations of unlawful conduct and downright deception… In seeking the media spotlight, the CFA’s representatives have improperly vilified an industry and threaten to inflict severe hardship on the consumer who is short of funds for medical treatment, rent deposits, auto repairs and a myriad of other crucial needs.”
FiSCA is a trade organization representing financial services providers across the country.
Source: Freedom of Choice for Consumers: The Truth about Deferred Deposit Services – A
Reasoned Response to the CFA’s Misrepresentations (Financial Service Centers of America)
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