Best Practices for Payday Lending


The California Financial Service Providers Association has established the uniform code of ethical business practices below, which we call Best Practices, to let our members' customers know how they can expect to be treated. All regular CFSP members are required to follow these Best Practices and to re-commit to follow them annually. CFSP's Best Practices ensure that our members conduct themselves responsibly and protect customers' rights. CFSP publishes these Best Practices as part of our leadership efforts in self-governance of the check cashing and payday advance industry in California and to assure the customers that they will be treated fairly and ethically by our members. If you have any questions about these Best Practices, please contact us.

Licensing.

To provide check cashing services, a member will hold an active check cashers permit issued by the Department of Justice. To provide deferred deposit loans either directly or as an agent in the state of California, a member will hold an active license issued by the Department of Corporations.

Compliance

A member will comply with all applicable state and federal laws governing money services businesses and those offering financial products as well as all local ordinances including signage ordinances.

Privacy

A member will take reasonable steps to protect its customers� non-public personal information.

Truthful advertising.

A member will not advertise any service in a false, misleading, or deceptive manner.

Disclosure of fees.

A member will post its fees in a conspicuous manner and in compliance with state law, and provide every customer with a printed receipt showing the transaction details.

Appropriate collection practices

A member will collect past due accounts in a professional and fair manner in compliance with accepted collection standards and laws. A member will not use threats, intimidation, or unlawful harassment to collect accounts.

Self-policing of the industry.

A member will participate in self-policing of the industry by reporting violations.

Consumer Hotline.

A member will maintain and post its own consumer hotline number in each of its Sites.

Deferred Deposit Loan (Payday Loan/Payday Advance/Cash Advance).

(a) Encourage consumer responsibility. A member will, in its written promotional materials, inform consumers of the intended use of deferred deposit loans, including notifying consumers that this type of loan is short-term cash �flow tool not designed as a solution for longer term financing.

(b) Full disclosure. A member will comply with all applicable state and federal disclosure requirements. A contract between a member and the customer must fully outline the material terms of the transaction, including disclosure of the cost of the service fee both as a dollar amount and as an annual percentage rate (APR).

(c) Compliance. A member will not charge a fee nor engage in any practice that has the effect of imposing a fee when such fee is not authorized by state law.

(d) Right to rescind. A member will give its customers the right to rescind, at no cost, a deferred deposit loan on or before the close of the following business day.

(e) Prohibit roll-overs. A member will require customers to repay a deferred deposit loan in full prior to making another loan to the same customer.

(f) No criminal action. A member will not threaten or pursue criminal actions against a customer as a result of a default on a deferred deposit loan.

(g) No treble damages. A member will not collect treble damages for a returned deferred deposit loan check in compliance with state law.

(h) Repayment arrangements. A member will accept and enter into reasonable repayment arrangements with customers in default. Upon acceptance of a repayment arrangement negotiated through a third party credit counselor, a member will honor the terms of repayment arrangement


>> Download the Brochure



April 24 - 26 CFSP 2016 CONFERENCE
REGISTER HERE
for the
CFSP Conference

PRINT SCHEDULE

Sunday, April 24, 2016

3:00 - 5:00pm
CFSP Board of Directors Meeting - Located in Indian Wells O P

5:00 - 6:00pm
Tom & Kathy host Board of Directors WELCOME RECEPTION – Located in Suite 741 Sponsored by EFT Network, Inc.

Monday, April 25, 2016

7:00am - 12:30pm
CFSP Annual Golf Tournament and Luncheon, Located at Indian Wells Celebrity Course Sponsored by Dollar Loan Centers

9:00am - 6:00pm
Registration Opens - Sponsored by The Western Union Company Located in - Desert Vista Foyer

  • Welcome Gifts Sponsored by netSpend
  • Signage Sponsored by Moneytree
  • Audio/Visual Sponsored by The Check Cashing Place
  • Hotel Key Cards Sponsored by Answers, etc.

8:00am - 3:00pm
Exhibitor Set-Up - Located in Desert Vista Ballroom

1:00 - 2:45pm
Key Components for Compliance

  • Key Components for Compliance – Located in (Nopales)
    Moderator: Paul Soter, CFSP Legal Counsel
    • Cherie Axelrod,Chief Operating Officer, Compliance and Vice President SWB, Western Union Co.
    • Marchael Kelly, Field Specialist, California Department of Business Oversight
    • Michelle Hemerley, Chief Compliance and BSA Officer, Speedy Cash Holdings Corp

3:00 - 3:15pm
CFSP Annual Meeting & Elections, CFSP Members Only – Located in (Nopales)

3:00 - 4:00pm
Meet and Greet Hosted by Board of Directors – Located on the Fairway Terrace Sponsored by Continental Currency Services

4:00 - 5:30pm
Opening General Session # 1 Located in Indian Wells OP

Welcoming Remarks - Thomas Leonard, Executive Director, CFSP

President's Remarks, Dan Gwaltney, President

Presentation by Cherie Axelrod, Chief Operating Officer, Compliance and Vice President SWB, The Western Union Co.

Presentation by Mark Gorney Senior Director – West Region, MoneyGram International

Panel Discussion “The Importance of our Community Partners”
Moderated by Natasha Fooman, Vice President, Governmental Affairs, Advance America & President, CalCFA

  • Aubry Stone, President, California Black Chamber of Commerce
  • Julian Canete, Director of Public Policy, CalAsian Chamber of Commerce
  • Frank Montes, Chairman, California Hispanic Chambers of Commerce

The Challenging Vision Forward Presented by Dennis Shaul, CEO, CFSA

5:30 - 8:00pm

Exhibit Hall Grand Opening Event – Located in Desert Vista Ballroom Sponsored by MoneyGram International

Tuesday, April 26, 2016

7:15am - 6:00pm
Registration - Sponsored by The Western Union Company - Located in Desert Vista Foyer

  • Welcome Gifts Sponsored by netSpend
  • Signage Sponsored by Moneytree
  • Audio/Visual Sponsored by The Check Cashing Place
  • Hotel Key Cards Sponsored by Answers, etc.

7:30 - 8:15am
Plated Breakfast served in Indian Wells Op
Co-sponsored by Wilshire Consumer Finance & Clarity Services, Inc.

8:00 - 10:00am
TUESDAY Morning General Session #2 Located in Indian Wells Op
Welcome Remarks - Thomas Leonard, Executive Director CFSP

  • President's Remarks - Dan Gwaltney, President CFSP

Panel Discussion “Operation Choke Point”

  • Moderated by Ed D’Alessio, Executive Director, FiSCA
  • Gerry Dabi, Senior Compliance Banking Consultant Capital Compliance Experts
  • Kathy Dotto, Senior VP MB Financial Bank
  • Robert Hanigan, Senior VP MB Financial Bank
  • Thomas Leonard, Executive Director, CFSP
  • Comments and Remarks, Chuck Cole, CFSP Legislative Advocate.
  • Eileen Newhall, Staff Director, California State Senate Banking and Financial Institutions Committee.

10:00 - 10:30am
BREAK – Located in Desert Vista Foyer
Sponsored by Continental Currency Services

10:30am - 12:30pm
Tuesday Morning General Session # 3 Located in Indian Wells Op

  • Consumer Sub Prime Trends, Presented by Tim Ranney, President & CEO Clarity Services, Inc.
  • The Uphill Battle: The Anti-Consumer Regime Presented by Brian J. Wise, Managing Partner, Wise Public Affairs

12:30 - 2:45pm
Exhibit Hall re-opens with LUNCH – Sponsored by The Western Union Company

3:00pm Exhibitor Tear down

3:00 - 4:30pm
TUESDAY Afternoon General Session 4 Located in Indian Wells Op

  • “Compliance Threats to Payments in PDL – Who, What, Why….and Strategies to Stay Safe!” Presented by Alexander Bacon, President, COO EFT Network, Inc.
  • Lending Opportunities & Challenges
  • Moderated by Dan Gwaltney
    • Colby Estes, Director of Sales & Marketing, 800 LoanMart
    • Jim Eyraud, Vice President, Wilshire Consumer Credit
    • Jim McGinley, Vice President Originations, Insikt

4:30 - 5:00 Closing Comments

  • Dan Gwaltney, President, CFSP
  • Tom Leonard, Executive Director, CFSP