Payday Lending Industry Implements Unprecedented Fee Disclosure Rules

Poster-size Fee Displays Now Found in 14,000+ Store Locations

WASHINGTON, Jan. 15 /PRNewswire-USNewswire/ -- Starting this month, Community
Financial Services Association of America (CFSA)-member companies are required
to display their fees on easy to read posters in all store locations.

CFSA, the national association of responsible payday lenders, represents more
than half of the payday advance locations in the nation. The new fee
transparency rules were adopted by the Board of Directors in October 2007 and
required to be fully implemented by January 1, 2008.

"While CFSA members have historically surpassed even the toughest state laws
when it comes to fee disclosure, we have now gone even further," said CFSA
President Darrin Andersen. "To ensure that our customers understand the fee
structure of a payday advance before they enter into the transaction, they
will now see the fees posted in large type on posters. Fees are displayed as
both a dollar amount and annual percentage rate."

This unprecedented reform requires members of CFSA to prominently display the
fees and annual percentage rates for at least five different loan increments
on posters that are at least 18" X 22" in size in all stores and on their
company websites. Potential customers will be clearly aware of all fees before
they enter the transaction process.

Andersen added, "The best way to protect consumers is to give them the
information they need to make an informed choice. That is true for all
products and services - whether it's nutritional information for foods, safety
information on medicines, or rating information for movies, TV shows and video
games. Consumers demand and deserve full disclosure of relevant information
before they make a purchase. With this step, we are helping ensure that every
customer of a CFSA-member store understands the fees involved before they
enter into the transaction. They are then to decide for themselves if the
product is right for them."

To inform consumers of the change, CFSA is sponsoring a multi-million dollar
public education campaign including TV, print and on-line advertising. The
print ad is available at http://www.cfsa.net/downloads/know_fee_print_ads.pdf
and the TV ad can be viewed at
http://www.cfsa.net/knowyourfee/know_your_fee_tv.html.

In addition, CFSA has a website to provide consumers with information about
how to use payday advances responsibly. The site, http://www.knowyourfee.org,
include a user-friendly, interactive map to make sure consumers are aware of
the maximum fees and rate caps allowed by law in individual states.

"CFSA has a long-standing commitment to responsible lending, beginning with
the adoption of industry Best Practices in 2000." Andersen added, "Last year
we instituted a number of major reforms, including an extended payment plan,
giving customers additional time to pay back their payday advance, at no
charge, if needed."

"Taken together, these initiatives will ensure that CFSA member companies hold
themselves to a higher standard of responsible service and will help our
customers make better financial decisions," said Andersen.

The Community Financial Services Association of America (CFSA),
http://www.cfsa.net is the national trade group of the payday advance
industry. Representing 164 member companies with more than half of the payday
advance outlets nationally, CFSA promotes laws and regulations that protect
consumers and preserve their access to credit options. The association also
works on behalf of members to support and encourage responsible industry
practices. Membership is contingent upon compliance with CFSA's mandatory
"Best Practices."

SOURCE Community Financial Services Association of America

Steven Schlein, or Lyndsey Medsker, both of Community Financial Services
Association of America, +1-202-296-0263