The following comments can be attributed to D. Lynn DeVault, Board Chair of the Community Financial Services Association of America (CFSA). This release was put out on the wire during today’s hearing in Birmingham, AL:

“Today’s Reuters story about the payday lending industry is very misleading and sets up a conflict with related industries that simply does not exist. Its emphasis does not reflect the tone and content of the several interviews the reporter conducted with three different industry spokespersons.

“Interviews initiated by the reporter focused on basic questions about the product, the history of the industry and the consequences of restrictions. One of the conseqences mentioned by spokespersons was the increased concerns by state officials of “unlicensed, offshore” lenders. The story does not relect this emphasis and instead accuses us of criticizing online lenders.

“To be clear, CFSA believes that online lending is an important and needed option in the small loan market and many of our member companies are engaged in state regulated online lending. It is an innovative and valuable service for millions of consumers.

“We will continue to point out the differences between highly regulated lenders and those that operate offshore and illegally. We hope reporters will learn the distinctions as well.”