ALEXANDRIA, Va., Nov. 24, 2014 /PRNewswire-USNewswire/ -- The Community Financial Services Association of America (CFSA) today sent a letter to Consumer Financial Protection Bureau (CFPB) Director Richard Cordray applauding the agency for taking increased action against the Hydra Group, a company that purported to be a payday lender while defrauding consumers. The letter also called for additional action to help protect consumers from illegal lenders and abuse of the Automated Clearing House system.
"On behalf of CFSA and its members, their employees, and their customers, I commend the prosecution and enforcement actions against the Hydra Group as well as other scammers, fraudsters, and other illegal operators that you have brought down," writes CFSA CEO Dennis Shaul.
The letter specifically called on the agency to establish a national registration of all legitimate and licensed lenders, noting that "until all lenders are required to register their businesses with the CFPB, unlawful entities like Hydra Group will be free to roam the Internet trolling for unwitting customers. If consumers were given the ability to check the license and registration of all lenders, they could easily discern legitimate, licensed, registered lenders from those that are not."
"CFSA respectfully urges that, as the CFPB continues to crack down on bad actors, it makes clear the distinction between these unlawful enterprises and legitimate, licensed lenders. Bad actors such as Hydra Group clearly do not represent the short-term lending industry, and they harm the reputations of our licensed and regulated members when the industry is painted with the same brush. More importantly, this creates an even more confusing environment for consumers, making them more susceptible to fraud and abuse," Shaul concluded.
Read the full letter here.
About the Community Financial Services Association of America
The Community Financial Services Association of America (CFSA) is the national organization dedicated to promoting responsible regulation of short-term credit products 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 short-term credit is a safe and viable option for consumers.
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SOURCE Community Financial Services Association of America