Cash America 2010 Annual Report Download - page 23

As a leader in the short-term cash advance industry and a
member of the Community Financial Services Association of
America (“CFSA”), Cash America acts as a responsible lender
and applies the industry’s best practices as it serves customers.
These best practices include:
1. Full disclosure of terms and conditions to each customer
and abiding by all requirements of each state, including
the Federal Truth in Lending Act;
2. Compliance with all applicable laws;
3. Truthful advertising;
4. Encouraging customer responsibility;
5. Limiting rollovers by the customer to four or the state
limit, whichever is less;
6. A one-day right to rescind at no cost to the customer;
7. Adherence to appropriate collection practices,
including applicable provisions of the Fair Debt
Collection Practices Act;
8. No threat of criminal action against a customer who is
delinquent on his or her account;
9. Enforcement of the industry’s self-policing best practices
and reporting violations to the proper authorities;
10. Support for responsible legislation of the industry that
incorporates these best practices;
11. Offering customers an extended payment plan;
12. Internet lending licensed under state law where
customers reside, where required; and
13. Display of the CFSA membership seal to alert customers
of the store’s affiliation with the CFSA and the store’s
adherence to these best practices.
To review a full description of these best practices, visit the
CFSA’s website at www.cfsaa.com.
Cash America strives to provide its customers with
borrowing options that best fit the individual customer’s
needs. In 2009, it is estimated that the cash advance industry
extended $30.3 billion of capital to consumers.(1) Research
indicates that the cash advance option is typically the
lower-cost option for the customer when compared to other
alternatives, provides an important source of much-needed
capital from a licensed and regulated provider and enhances
the welfare of the community. To review additional research
papers, please refer to the Cash America website at
www.cashamerica.com.
(1) Stephens, Inc. April 2010 estimates.
$410
$390
$370
$350
$330
$310
Comparative Data
2009 Average Insufficient Funds/Overdraft Protection Paid
Per Banked Household
USA States
w/o Cash
Advance
States
with Cash
Advance
Source: Bretton Woods, Inc.; 2009 Analysis of Bank and Credit Union NSF/ODP Programs,
published February 2010.
$376
$407
$361
$60
$50
$40
$30
$20
$10
$0
Consumer’s Choice
A Comparison of the Alternatives: Payday Loans (PDAs) Are Cheaper;
The Consumer Gravitates to the Best Deal
$100 Payday
Advance
Overdraft
Protection Fee on
$100 Transaction
Credit Card
Late Fee on
$100 Bill
Bounced Check +
NSF Merchant Fee
on $100 Transaction
Source: Community Financial Services Association of America.
$15 Fee
$29 Fee
$58 Fee
$37 Fee
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Proud Members Of:
Community Financial Services
Association of America (CFSA)
www.cfsaa.com
Online Lenders Alliance (OLA)
www.onlinelendersalliance.org
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