Payday loan businesses to disclose fees on poster-size displays
After the new year, when consumers go in for a payday loan, they won’t have to squint to see the 340 annual percentage rate they’ll be hit with when they take out the loan.
Starting Jan. 1, all payday lenders associated with the Community Financial Services Association of America will display their fees on poster-size displays.
All CFSA-member lenders will be required to prominently display the fees and annual percentage rates for at least five different loan increments on posters that are at least 18-by 22-inches in size in all stores quick payday loan. The industry is also putting out a multi-million dollar print and television campaign promoting the new requirement.
“Consumers have a right to know all of the fees associated with a financial product so they can make informed financial decisions,” said CFSA President Darrin Andersen. “CFSA’s new policy ensures that customers know, in simple terms, exactly what the fees are before they enter into any transaction.”