Payday-Funded Group Cites Payday-Funded Poll to Argue Against CFPB’s Payday Rule

RHETORIC: President and CEO of US Hispanic Chamber of Commerce Wrote Op-Ed Critical of Consumer Financial Protection Bureau’s Proposed Payday Lending Rule

Palomarez “Concerned” with CFPB’s Proposed Payday Lending Rule. “The Consumer Financial Protection Bureau’s (CFPB) proposed rule on short term credit unveiled last month has spurred much debate. While the Bureau says it wants to protect consumers, I’m concerned that the rule will have the exact opposite impact, eliminating credit for millions of Americans and making many worse off. What’s more, minority communities who are unbanked or underbanked will be disproportionally impacted.” [Huffington Post (Op-Ed by Javier Palomarez): “Alternative Lenders Offer Opportunities for Consumers and Business Alike,” 8/5/16]

REALITY: Community Financial Services Association (CFSA), The Main Payday Lending Trade Group, Contributed $385,000 To The US Hispanic Chamber of Commerce from 2011-2014

The Community Financial Services Association Is the Main Payday Lending Industry Special Interest Trade Group. “The Community Financial Services Association (CFSA) is the national organization dedicated to advancing financial empowerment for consumers through small dollar, short-term loans. Now in its 14th year, CFSA was established to promote laws and regulations that protect consumers, while preserving their access to credit options, and to support and encourage responsible payday advance industry practices.” [cfsaa.com]

In 2014, CFSA Donated $110,000 To the US Hispanic Chamber of Commerce. [Community Financial Services Association, IRS Form 990, 2014]

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In 2013, CFSA Donated $75,000 to the US Hispanic Chamber of Commerce. [Community Financial Services Association, IRS Form 990, 2013]

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In 2012, CFSA Donated $100,000 to the US Hispanic Chamber of Commerce. [Community Financial Services Association, IRS Form 990, 2012]

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In 2011, CFSA Donated $100,000 to the US Hispanic Chamber of Commerce. [Community Financial Services Association, IRS Form 990, 2011]

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RHETORIC: Op-Ed Cited Poll to Argue Consumers Like Payday Loans

Palomarez: Poll Shows Consumers Find Payday Loans “Sensible”, “Fairly Priced” And They “Fully Understand the Loan Terms.” Javier Palomarez wrote in his op-ed, “Despite what the CFPB claims, the people who have used payday loans in the past are much more favorable toward these products than those who do not have the same personal experience. According to the research, most payday borrowers believe that payday loans can be a sensible choice, appreciate the option it provides, think that they are fairly priced and fully understand the loan terms.” [Huffington Post (Op-Ed by Javier Palomarez): “Alternative Lenders Offer Opportunities for Consumers and Business Alike,” 8/5/16]

REALITY: Poll Cited by Palomarez Was Funded by The CFSA

Poll Cited by Palomarez Was Paid for by The Community Financial Services Association.

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[CFSA Funded Study, March 2016]

REALITY: Independent, Non-Payday Funded Study Shows Majority of Payday Consumers Feel Taken Advantage of  and Nearly 3/4s of Borrowers Support More Regulations

55% Of Payday Loan Consumers Feel Payday Loans Take Advantage of Borrowers. [Pew Charitable Trust: “How Borrowers Choose and Repay Payday Loans”, 2/2013]

72% Of Payday Borrowers Favor More Regulation of the Industry. [Pew Charitable Trust: “How Borrowers Choose and Repay Payday Loans”, 2/2013]

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