Virginia Pilot Research Confirms Payday Loan Stores Located in Middle Income Neighborhoods

Virginia Pilot Research Confirms Payday Loan Stores Located in Middle Income
Neighborhoods

Proves Critics Are WRONG that Payday Loans Target the Poor

WASHINGTON, Jan. 29 /PRNewswire-USNewswire/ -- New research published today by
the Virginia Pilot newspaper confirms that in Virginia, a vast majority of
payday lending stores are located in middle class neighborhoods. The story:
"Who uses payday loans? Not who you might think" by reporter Meghan Hoyer also
directly refutes what the payday industry's critics charge - that payday
lenders target the poor and downtrodden.

Hoyer writes: "...an analysis by The Virginian-Pilot reveals...Lenders are
targeting middle-income neighborhoods, usually near shopping malls, and
avoiding poor areas." She writes that payday lenders are even putting their
stores in the upscale neighborhoods near million dollar homes.

"Payday lenders have insisted for years that our customers are middle-class
folks gainfully employed," said Darrin Andersen, president of the Community
Financial Services Association of America (CFSA). "Despite these facts which
have been confirmed in national research studies, payday lending's critics
insist that we target the poor and everyone generally believes them. If the
critics of payday lending are willing to lie about our customers, we hope the
media, the public and legislators will question what else our critics are
misleading them about."

Jay Speer, executive director of the Virginia Poverty Law Center, and
generally recognized as an expert by the media on banning payday lending told
Hoyer that he was: "surprised at The Pilot's findings." Speer then went on to
tell the Virginia Pilot that even though he has been completely wrong about
payday lenders all this time that: "It's almost sadder that they're hitting
the middle-income folks." It appears as if Mr. Speer is opposed to payday
lenders no matter what the facts are.

Andersen added: "We are grateful the Virginia Pilot and reporter Meaghan Hoyer
have invested the time and resources to get the truth about payday lenders and
not just rely on the word of our critics." He concluded, "We hope legislators,
the public and the media will take note of this important analysis and
preserve payday lending as an option for working folks who need short-term
loans in Virginia."

The Virginia Pilot article can be found online at:

http://hamptonroads.com/2008/01/who-uses-payday-loans-not-who-you-might-think

About the Community Financial Services Association of America
The Community Financial Services Association of America (CFSA)
(http://www.cfsa.net ) 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.

SOURCE Community Financial Services Association of America (CFSA)

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