Payday lending companies look to be turning on each other under pressure from campaigners and regulators — with a major player quitting the industry body and slamming the remaining membership in a statement issued exclusively to Political Scrapbook.
The logo of multinational pawnbroking franchise Cash Converters mysteriously disappeared from the Consumer Finance Association’s website in the last few days. When this website asked them why, we hoped for an acknowledgement that they had parted company with the CFA — but what we received was the following extraordinary broadside from their CEO David Patrick, who slips in the knife …
“Cash Converters has valued the support of the Consumer Finance Association (CFA) during our five year membership. However, with the significant industry changes, such as the new regulations and imminent [interest] rate cap, we are in a position to stand alone and separate ourselves from the CFA and its members.
… and then twists:
“Our strong position and high standards set us apart from our competitors and we see ourselves as an example to the industry as it enters a new compliant phase.
This comes just days after the CFA attempted to shore up their position by paying Tory think tank Respublica to produce a report which hailed the “social good” which the industry can do.
Rats. Ship. Sinking.
UPDATE: Carl Packman, who literally wrote the book on payday lending, flags the significance of this development …
— Carl Packman (@CarlPackman) November 6, 2014