Industry News

Consumer Information by COMMUNITY FINANCIAL SERVICES ASSOCIATION OF AMERICA

Payday Advance provides a small, unsecured, short-term cash advance until payday. Customers choose Payday Advance to cover small expenses and avoid costly bounced-check fees or late payment penalties and other less desirable short-term credit options. A customer with an active checking account and a regular income simply:

1. Reads and signs an agreement that discloses transaction terms,
2. Writes a personal check for the advance amount plus a fee, and
3. Immediately receives the advance in the value of the check minus the fee.

The customer’s check is held for an agreed-upon time period, usually about two weeks. At the end of that time, either the check is deposited or the customer returns with cash to reclaim the check.

Just as you understand that taxi services are valuable and convenient when used for short-term travel needs but are inefficient to use for long-term travel needs, Payday Advance services are economical and convenient when used for short-term cash needs. BUT THEY ARE INAPPROPRIATE TO USE FOR LONG-TERM OR CONTINUING CASH NEEDS. The Payday Advance product is a dignified and cost-efficient “financial taxi” to get from one payday to another when you are faced with an unexpected cash need.

These advances must be used responsibly and for the purpose for which they are intended, namely to solve temporary cash-flow problems by bridging the gap between paydays.

Click here to go to the article: http://www.cfsa.net/custinf/acustinf.html