WASHINGTON--(BUSINESS WIRE)--The following comment can be attributed to D. Lynn DeVault, Board Chair of the Community Financial Services Association of America:
“Native American partnerships are solely a practice of a group of internet-based lenders who choose not to license themselves in the states in which they operate. As reported by the Wall Street Journal, the U.S. government has granted sovereign immunity to tribes that shield them from payday lending regulations. CFSA member companies, however, will continue to hold themselves accountable to the states and will not be involved in this practice.
“Our Best Practices require that all our member companies be licensed in the state where the customer resides and that they comply with all applicable state laws.
“Partnering with a Native American tribe to avoid state licensing requirements for short-term lending defies CFSA Best Practices and would lead to the automatic expulsion of a company in violation.”
About the Community Financial Services 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.