I sense a real showdown brewing between the two organizations that both claim to represent the interests of the payday loan industry.
As reported earlier today, on Thursday, the Community Financial Services Association of America issued a press release announcing that it was requiring all of its members "to present consumers with fees on poster-size displays in all stores and on company Web sites."
The Predatory Loan Association followed up with a recommendation that conforming lenders adopt a "tiny font" for the posters.
Moments ago, Dezenhall Resources' Lyndsey Medsker e-mailed Salon:
Just FYI -- There is actually a font size requirement.
Our members have all agreed to implement the following steps in member stores no later than January 1, 2008:
- Prominently position a poster-style display, in all stores, that includes fees expressed as both a dollar amount and as an Annual Percentage Rate. These displays must be at least 18' X 22' in size and they must use a type size of no smaller than approximately 1/2 inch.
- The displays will present these fees for at least five different advance increments and for at least one term, typically a 14-day advance.
- In addition, CFSA member companies with Web sites will post this same information with details on each state in which the company operates.
Incidentally, Dezenhall Resources is the public relations firm founded and run by Eric Dezenhall, the man who advised the American Association of Publishers to fight against the open access movement with the slogan "public access equals government censorship." In January, How the World Works reviewed Dezenhall's book, "Damage Control: Why Everything You Know About Crisis Management Is Wrong."
This pleases us.
How the World Works will continue to update you on this important "tiny font" story.
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