Payday Lenders Adopt Ethics
The Financial Services Centers of America (FSCA), the trade association for payday lenders and check-cashing stores, has announced a new code of ethics. Included in the 14-point code of conduct and new financial literacy brochure is a call for payday lenders to immediately suspend or defer debt collection activity involving military personnel stationed in or assigned to a combat area. FiSCA also calls for a minimum 30-day deferral of collection activity involving National Guard or Reserve personnel after an unanticipated call-up. Several published studies have noted the prevalence of payday lenders near military bases.
The new code of conduct comes at the same time the industry has been subjected to proposed legislation at both the state and federal levels to curb some practices. Bills have been introduced in Pennsylvania, Ohio and Georgia to curb so-called "predatory" practices.