Consumer Affairs Ministers and senior officials from federal, provincial and territorial governments meeting in Winnipeg in January recognized “the need for improved consumer protection in a legitimate and viable marketplace for short term credit”

The newly formed Canadian Association of Community Financial Service Providers (CACFSP) which represents companies operating over 1,200 service outlets across Canada providing payday loans announced today it will work with all levels of government to ensure consistent compliance with strict and transparent business standards throughout the industry. At present, the Association represents over 80% of Canadian short term cash providers, and is governed by a geographically representative board directors of large and smaller players in the industry.

CACFSP members meet the needs of Canadians for accessible, convenient, generally small short term closed-end loans. Studies estimate that over one million Canadians use their services yearly.

“There is much work to be done to ensure industry wide standards and many myths to dispel about the financial services our members provide,” the Association’s new President and Chief Executive Officer, Bob Whitelaw, formerly CEO of the Canadian Council of Better Business Bureaus said. “Studies have shown, for instance, a clear need for the product, high levels of consumer satisfaction with our services, and low levels of complaints. As well, the demographics of our customer base are almost the same as for mainline retail banking customers.”

Consumer Affairs Ministers and senior officials from federal, provincial and territorial governments meeting in Winnipeg in January recognized “the need for improved consumer protection in a legitimate and viable marketplace for short term credit”, and a group of Ministers, with officials, (CACFSP) is addressing this need including “the establishment of best practices for the industry”. The Association welcomes the opportunity to work with officials on best practices, and is itself elaborating its own code and membership standards.

“It is important to reassure consumers that the qualified members of the Association meet standards and that our charges are justifiable, transparent and applied fairly,” Whitelaw added. “Our objective is to maintain high standards through self regulation, government guidelines or consumer legislation.”

The CACFSP office opened May 3rd in Ottawa.