In light of these simultaneous debit card rewards decreases and fee increases, the question that’s being asked: Should consumers be looking for checking account alternatives? This article encourages consumers to consider prepaid card accounts. Why? Because they are not subject to interchange fee caps and can basically serve the same purpose as a checking account.

A word to the wise to all consumers of payday loans: Use a CFSA Member! We want to make sure that situations like this don’t happen. Remember, using a CFSA Member means you’re doing business with a legitimate financial institution.

Our first two Best Practices state:

1. A member will comply with the disclosure requirements of the state in which the payday advance office is located and with federal disclosure requirements including the Federal Truth in Lending Act. A contract between a member and the customer must fully outline the terms of the payday advance transaction. Members agree to disclose the cost of the service fee both as a dollar amount and as an annual percentage rate (“APR”). A member, in compliance with CFSA guidelines where they do not conflict with applicable federal, state or local requirements, will further ensure full disclosure by making rates clearly visible to customers before they enter into the transaction process.
2. A member will comply with all applicable laws. A member will not charge a fee or rate for a payday advance that is not authorized by state or federal law.

You’ll know when you’re taking out a loan with a CFSA member if you see this seal.