New York Times Didn't Do Its Research on Payday Lending, Says CFSA.WASHINGTON -- Contact information should read: Steven Schlein, 202-296-0263 (sted Steven Schlein, 202-296-0253).The corrected release reads: NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of TIMES DIDN'T DO ITS RESEARCH ON PAYDAY LENDING, SAYS CFSA CFSA Community Financial Services Association CFSA Certified Financial Services Auditor CFSA Carolina Farm Stewardship Association (Pittsboro, NC) CFSA Child and Family Services Act (Canada) The New York Times editorial board demonstrates an extraordinary lack of depth and knowledge of the payday advance industry in today's editorial which calls for restrictions on the industry, says CFSA. The editorial references a consumer group paper about customer usage--a consumer group that has already been criticized by data collectors for it misuse of their data--while ignoring a large body of research that demonstrates how payday advances help consumers improve welfare and prevent financial disruptions. A small sample of the research ignored by the New York Times includes: * In "Restrictions on Credit: A Public Policy Analysis of Payday Lending," Petru S. Stoianovici of The Brattle brat·tle Scots n. 1. A rattling or clattering sound. 2. A movement that produces such a sound. intr.v. Group and Michael T. Maloney of Clemson University Clemson University, at Clemson, S.C.; coeducational; land-grant; state supported; opened in 1893 as a college, gained university status in 1964. The university includes programs in textile and computer research, wildlife biology, and aquaculture and maintains , says: "There is no statistical evidence to support the 'cycle of debt' argument often used in passing legislation against payday lending." * Professor Adair Morse at the University of Chicago says in "Payday Lenders: Heroes or Villains?": "Natural disasters induce an increase in foreclosures, but the existence of payday lenders significantly offsets this increaseO."For these individuals, the existence of payday loans A payday loan or paycheck advance is a small, short-term loan that is intended to cover a borrower's expenses until his or her next payday. Typical loans are between $100 and $1500, on a two-week term and have interest rates in the range of 390 percent to 900 percent raises welfareO."If the existence of payday lending is valuable for those facing personal disaster in a way that other financial institutions cannot provide, then regulators should strive to make access to finance easier and more affordable, not ban it." * Donald Morgan, a researcher at the New York Federal Reserve conducted a study "Payday Holiday: How Households Fare after Payday Credit Bans" that concluded: "Georgians and North Carolinians North Car·o·li·na Abbr. NC or N.C. A state of the southeast United States bordering on the Atlantic Ocean. It was admitted as one of the original Thirteen Colonies in 1789. First settled c. do not seem better off since their states outlawed payday credit: they have bounced more checks, complained more about lenders and debt collectors, and have filed for Chapter 7 ("no asset") bankruptcy at a higher rate." * A study conducted at George Mason University Named after American revolutionary, patriot and founding father George Mason, the university was founded as a branch of the University of Virginia in 1957 and became an independent institution in 1972. and Colby College Colby College, at Waterville, Maine; coeducational; est. 1813, opened 1818. The school, principally a liberal arts college, adopted its present name in 1899. Its library includes the papers of Edwin Arlington Robinson. , "Restrictions on Payday Loans Do More Harm Than Good," says: "Oa growing body of research, including ours, suggests that access to payday loans can benefit borrowers, so long as they do not abuse the productO.banning payday loans, or severely restricting their availability by capping interest rates, harms the very people whom consumer interest groups and their political allies are trying to help." About the Community Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. Association of America The Community Financial Services Association of America (CFSA) is the only national organization dedicated solely to promoting responsible regulation of the payday advance industry and consumer protections through CFSA's Best Practices. As such, we are committed to working with policymakers, consumer advocates and CFSA member companies to ensure that the payday advance is a safe and viable credit option for consumers. |
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