Categorized | alternatives, customers, industry

CFSA & consumer groups on same page

At least on one issue.   From CFSA’s news release

The Community Financial Services Association of America (CFSA) said today that it supports the efforts of the Consumer Federation of America and the Consumers Union to protect recipients of Social Security and other government benefits from lenders who access their directly deposited checks through sub-account arrangements.

According to a Wall Street Journal story on July 20, “The Social Security Administration has been depositing benefits directly into accounts controlled by storefront lenders, which repay themselves from the benefits before remitting the rest of the money to beneficiaries.”

Lynn DeVault, board chair of CFSA, said she knows of no payday advance companies that engage in this practice and that the industry strongly supports efforts to block all lenders from gaining access to a borrower’s bank account through these sub-account arrangements.

“Citizens receiving government benefits are among the most vulnerable members of society,” DeVault said. “We agree with the consumer groups that the Treasury Department should stop banks from giving lenders access to bank accounts through these sub-account arrangements.”

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