Statement of D. Lynn DeVault, board chair of Community Financial Services Association of America:

“Center for Responsible Lending cannot seem to look at data and apply a common sense analysis.  Let’s be clear about the demand for payday advances.   Consumers find themselves with an urgent need to pay a bill before payday.  They survey their choices—payday advances, bank or credit union loans, overdraft protection, title loans, borrowing from family members, pawnshops or credit card advances.  They also carefully weigh how much each will cost them in simple dollars and cents.   Many choose a payday loan.

“Now we agree with Center for Responsible Lending that sometimes one payday advance is not enough.   The financial hit the consumer took—a car repair, a hospital bill, a utility bill payment—might not be resolved.   But after a payday advance, consumers still have all the other options.   The fact they many choose another payday advance is evidence that we offer a strong alternative to the other services.

“We offer consumers a solution to short-term finanical problems.  Center for Responsible Lending offers them  sympathy and moral support.”