Defend American Consumers - Accountable US

Background

Big payday lenders have been hurting American consumers for far too long. Now, the Community Financial Services Association of America (CFSA), a trade group that represents the payday industry, is challenging the constitutionality of the Consumer Financial Protection Bureau (CFPB), the agency created to defend consumers against these predatory practices.

Here is what you need to know about the CFSA:

Some of the worst payday offenders serve on the CFSA board.

The CFSA’s board consists of 13 executives from predatory payday lenders, according to a 2021 form 990, and has extensive ties to Republican politicians and lawmakers. For example, some of the worst offenders are Ian Mackechnie, Head of Amscot Financial, who was convicted of insurance fraud and banned from selling insurance in Florida, and Kip Cashmore, head of USA Cash Services, who was associated with fraud and bribed disgraced Utah AG to benefit his payday lending company.

CFSA has extensive ties to Republican lawmakers, who have been trying to kill the CFPB.

CFSA

According to FEC records, the CFSA has contributed a combined $96,000 to Republican members on the House Financial Services Committee (HFSC) and Senate Banking Committee. The members signed a July 2023 amicus brief supporting the CFSA’s challenge against the CFPB. Among the top recipients of these contributions are staunch anti-CFPB Rep. Blaine Luetkemeyer (R-MO), current HFSC Chairman Patrick McHenry (R-NC), and Senate Banking Ranking Member Tim Scott (R-SC), among others.

During the Trump presidency, the trade organization hosted at least two of its annual conferences at the Trump National Doral in Miami, Florida. Jones Day, a law firm with extensive ties to conservative judges and groups, is representing the CFSA in its case against the CFPB. The association spent 78% of its total revenue on legal fees to Jones Day that fiscal year, according to the CFSA’s 2021 Form 990. Noel J. Francisco, Counsel of Record for the case, is a former clerk for the late Justice Antonin Scalia and President Trump’s Solicitor General from 2017 to 2020. Firm partner Christian Vergonis is also a commentator for the Federalist Society.

Purpose Financial, headed by CFSA President Jessica Rustin, has paid Mindset Advocacy over $2.4 million since 2012 to lobby the federal government on issues pertaining to “Dodd-Frank implementation” and “rate cap legislation.” Two lobbyists at Mindset also have extensive careers as staffers on the Hill working for Representatives Patrick McHenry (R-NC) and Blaine Luetkemeyer (R-MO). Mindset senior director Charlie Schreiber, who worked on the House Financial Services Committee until August 2021, has given HFSC Republicans who signed a July 2023 amicus brief $7,500, including $1,750 to Chairman McHenry. Partner Chris Brown, who worked in numerous positions for Rep. Luetkemeyer and the HFSC under then-ranking Member McHenry, has contributed a staggering $34,800 to HFSC members, including $7,500 to Chair McHenry.

CFSA entities have paid over $200 million in fines brought by Regulators.

In January 2019, Enova was fined $3.2 million by the Bureau for debiting consumer bank accounts without their authorization. In November 2013, Cash America International, Enova’s parent company at the time, was fined $5 million by the CFPB and forced to pay $14 million in refunds for “violat[ing] the Military Lending Act by illegally overcharging servicemembers and their families.“

In April 2020, PROG subsidiary Progressive Leasing paid $175 million to settle a Federal Trade Commission lawsuit alleging the lender “frequently” misled consumers by charging consumers twice the advertised ticket price for payments on rent-to-own items. Then-FTC director Kelly Slaughter said, however, “the settlement did not go far enough,” as consumers ultimately paid “more than $1 billion in extra fees and charges.”

In August 2011, QC Holdings agreed to pay $1.9 million to settle a class action lawsuit alleging the company violated Missouri law by “charging exorbitant rates” and “renewing payday loans too many times.”

“

An Accountable.US review of payday lenders on the CFSA board shows a plethora of reasons these entities are determined to gut the CFPB's independent funding mechanism. Many have been fined or settled lawsuits with federal regulators and have a history of contributing to Republican lawmakers who have sided with industry in its attack against the Bureau. CFSA board member companies, and their affiliated subsidiaries and parent companies, have paid over $204 million in fines and restitution to federal and state regulators, while paying at least $3.4 million in settlements from class action lawsuits against them.

Organizations

According to a 2021 IRS form 990, Purpose Financial CEO Jessica Rustin serves as the President of the Community Financial Services Association of America (CFSA), with the company’s chief legal officer Denae Roth also serving on the board. According to its website, Purpose Financial is one of the largest payday lenders, with Advance America, Perch Loans, and Fortuna Credit as its three subsidiaries. Advance America’s APRs, as high as 664%, have led consumers to file for bankruptcy and struggle emotionally after falling behind on mortgage payments.

Purpose Financial’s parent company, Grupo Salinas, is a Mexican banking conglomerate founded by Ricardo Salinas Pliego, one of the richest people in the world with an estimated net worth of over $13 billion. Grupo Salinas has paid millions in fines stemming from enforcement actions by both Mexican and American regulators and has a history of lobbying to influence U.S. policy while Pliego flaunts his personal wealth.

In February 2023, the firm was fined Mex$1.4 Billion ($76.2 million USD at the time) by a Mexican federal court for tax irregularities.

In January 2005, Grupo Salinas was fined $7.5 million by the SEC after Salinas Pliego attempted to conceal a series of transactions resulting in a windfall of $109 million.

In June 2021, Salinas Pliego received backlash after he said his bank would work “to be the first bank in Mexico to accept #Bitcoin,” resulting in Mexico’s central bank issuing a warning reminding the firm it was not allowed to trade or accept cryptocurrencies.

Advance America has also promoted anti-CFPB articles authored by the Heritage Foundation and CATO Institute. In January 2016, Advance America promoted Heritage fellow Norbet Michel who staunchly opposed the CFPB’s payday lending rule. In June 2016, Advance would then share an article penned by the CFSA’s CEO claiming the rule was the result of “an activist-driven propaganda campaign against the industry.” In May 2016, Advance then shared an op-ed written by a Cato Institute associate director, which claimed efforts to regulate payday lenders were “paternalis[tic]” and “classis[t].”

In addition, a review of the Purpose Financial, Inc. PAC’s contributions show the company has contributed $157,250 to current Republican members of the House Financial Services and Senate Banking Committees who signed on to an amicus brief supporting the CFSA’s lawsuit.

Finally, a review of lobbying disclosures shows that Purpose Financial has paid Mindset Advocacy over $2.4 million since 2012 to lobby the federal government on issues pertaining to “Dodd-Frank implementation” and “rate cap legislation.” Two lobbyists at Mindset also have extensive careers as staffers on the Hill working for Representatives McHenry and Blaine Luetkemeyer (R-MO):

Mindset senior director Charlie Schreiber, who worked on the House Financial Services Committee until August 2021, has given HFSC Republicans who signed a July 2023 amicus brief $7,500, including $1,750 to Chairman McHenry.

Partner Chris Brown, who worked in numerous positions for Rep. Luetkemeyer and the HFSC under then-ranking Member McHenry, has contributed a staggering $34,800 to HFSC members, including $7,500 to Chair McHenry.

Enova International, a payday lender based in Chicago, Illinois, is represented on the board of the Community Financial Services Association of America (CFSA) by its chief strategy officer Kirk Chartier.

Enova has a history of CFPB enforcement actions due to violations of consumer protection laws. In January 2019, Enova was fined $3.2 million by the Bureau for debiting consumer bank accounts without their authorization. In November 2013, Cash America International, Enova’s parent company at the time, was fined $5 million by the CFPB and forced to pay $14 million in refunds for “violat[ing] the Military Lending Act by illegally overcharging servicemembers and their families.” Enova International subsidiary CashNetUSA charges APRs as high as 579% and has an alleged history of threatening to arrest consumers who fell behind on payments.

A review of FEC filings also shows Chartier has frequently contributed to Republican lawmakers who have gone after the CFPB. He has contributed a combined $17,005 to current Republicans on the House Financial Services Committee (HFSC) and Senate Banking Committee who signed a July 2023 amicus brief supporting the CFSA’s lawsuit against the CFPB. This includes $8,600 to current HFSC Chairman Patrick McHenry (R-NC) and $1,000 to current Senate Banking Ranking Member Tim Scott (R-SC).

Chartier has also contributed $16,000 to the Online Lenders Alliance (OLA), which represents many payday lenders. Among the many anti-CFPB actions the OLA has taken include:

The group supported former CFPB director Kathy Kraninger, who was a Trump administration appointee focused on using her power to roll back regulations meant to protect consumers from predatory lenders. OLA celebrated Kraninger’s confirmation in December 2018. Shortly after her confirmation, Kraninger would remove regulations making it easier for payday lenders to charge higher-cost loans to consumers.

The OLA also argued in March 2023 that the funding of the CFPB should be ruled unconstitutional, while urging lawmakers to remove the directorship and bring the agency’s funding under the appropriations process, among other anti-CFPB recommendations.

Advance Financial, a payday lender based in Nashville, TN with APRs as high as 450%, is represented on the Community Financial Services Association of America’s board by its chairman, Mike Hodges, and senior vice president of public policy, Cullen Earnest, who serves as the organization’s secretary and treasurer according to an IRS filing. Hodges’ wife Tina, Advance Financial’s Chief Executive and Chief Experience Officer, also serves alongside her husband on the executive committee of INFiN, a payday trade group composed of CFSA members.

In addition to their ties to industry, Mike and Tina have been vocally supportive of Republicans and their efforts to undermine regulatory frameworks.

Mike Hodges blatantly admitted in September 2019 that he raised money for President Trump so he could maintain access to White House Officials, even hiring Mick Mulvaney’s former chief of staff to lobby on issues pertaining to the CFPB.

Hodges also contributed $250,000 to a Trump-affiliated Super PAC and petitioned the CFPB under then-Director Kathy Kraninger to successfully remove provisions of the payday lending rule. Tina and Mike Hodges in total have contributed over $1 million in support of former President Trump.

In addition to backing Trump-era rollback efforts, Mike and Tina have a long history of contributing to lawmakers keen on eliminating the CFPB. FEC records show the two have contributed a combined $173,600 to Republican members of the House Financial Services Committee (HFSC) and Senate Banking Committee who signed a July 2023 amicus brief supporting the CFSA’s lawsuit.

This figure includes $15,000 to HFSC Chairman Patrick McHenry (R-NC), $57,200 to Tennessee Republican John Rose, and $32,000 to Senator Bill Hagerty (R-TN) of the Senate Banking Committee.

The couple has even contributed over $2.2 million to the National Republican Party through a combination of contributions to the National Republican Congressional Committee, National Republican Senatorial Committee, and Republican National Committee.

Finally, Tina and Mike Hodges have contributed over $112,000 to payday lending groups. This includes $15,000 to the Online Lenders Alliance, $5,000 to the Community Financial Services Association of America, and $92,300 to INFiN.

Amscot Financial is a Tampa-based payday lender founded by Ian MacKechnie in 1986 with APRs of 338%. According to his bio and IRS filings, MacKechnie serves on the board of the Community Financial Services Association of America and the Financial Service Centers of America, now known as INFiN. MacKechnie’s sons Fraser and Ian Jr. serve as the firm’s president & chief operating officer and vice chairman, respectively.

A review of MacKechnie’s time as the head of Amscot shows a shady history of business dealings, including defrauding insurance policyholders. In August 1998, he pled guilty to racketeering after a sting operation revealed business associates “slid” unwanted add-ons to consumers without their knowledge, resulting in a lifetime ban from being able to sell insurance policies.

Both Ian and his son Ian Jr. have also defended the predatory payday lending history. MacKechnie Sr. in 2003 said that interest rates as high as 300% were “reasonable.” He also said efforts to regulate the industry were “elitist,” as his son criticized regulatory efforts, adding, “we didn’t cause the financial crisis.”

Meanwhile, a review of FEC records show the family are major contributors to anti-CFPB members of the House Financial Services and Senate Banking committees, as well as the national Republican party. Among these contributions include:

Ian MacKechnie and his sons have contributed a combined $74,000 to Republicans on the House Financial Services Committee and an additional $32,100 to Senate Banking Republicans who signed an amicus brief supporting the CFSA’s lawsuit against the CFPB.

Ian MacKechnie and his sons have also contributed a combined $347,600 to the National Republican Congressional Committee (NRCC), National Republican Senatorial Committee, and Republican National Committee and an additional $50,000 to President Trump.

Ian MacKechnie Jr. made three contributions totaling $7,500 to the National Republican Congressional Committee the day after Republicans reintroduced legislation that would abolish the CFPB.

The family has also contributed a combined $97,500 to the CFSA and an additional $81,700 to INFiN, as MacKechnie and his son serve on INFiN’s executive committee.

Finally, Amscot faced a class action lawsuit in July 2021 after a consumer alleged the firm robocalled him “at least 2,000 times,” a direct violation of the Telephone Consumer Protection Act. The law firm representing Amscot, Holland & Knight, is also a registered lobbyist representing Amscot. Since 2011, Amscot has paid Holland & Knight $4,000,000 to lobby on the CFPB’s creation and implementation, and “legislation and policies affecting financial services, including pay day advances and check cashing.”

QC Holdings, a Kansas-based payday lender, is represented on the board of the Community Financial Services Association of America (CFSA) by its president and CEO Darrin J. Andersen, according to a 2021 990 IRS form. Andersen has a history of opposing payday lending regulations and financially backing anti-CFPB crusaders while his companies charge APRs as high as 782%.

In 2006, Andersen insisted that if payday loans were a problem costing consumers money, then the sale of books should be banned since they also cost consumers money. He has also claimed capping APR rates would effectively ban payday loans and in 2008 he claimed he had to “turn away” soldiers because of a 36% interest rate cap.

In addition to Andersen’s anti-regulatory stances, his firm and its subsidiaries have paid at least $3.57 million in fines and settlements. Among them are:

In March 2011, Quik Cash, a subsidiary of QC Holdings, paid $170,000 in restitution to settle allegations the company committed consumer fraud for entering judgments against consumers in the wrong jurisdictions.

In August 2011, QC Holdings agreed to pay $1.9 million to settle a class action lawsuit alleging the company violated Missouri law by “charging exorbitant rates” and “renewing payday loans too many times.”

In November 2016, QC Holdings was ordered to pay $1.5 million by a California federal judge to settle a class action lawsuit alleging it contacted individuals “to collect an alleged, unknown debt,” in an invasion of consumers’ privacy.

In addition to its fines and settlements, QC Holdings has been involved in the financial backing of problematic public officials. The company was implicated in an investigation into former New Mexico official Demesia Padilla who resigned from office after an investigation into “tax evasion, embezzlement, and violations of the Governmental Conduct Act.” During the investigation, agents of the Office of the New Mexico Attorney General found nearly $48,000 in payments made to Padilla by QC Holdings. However, records found no corroboration that the money was for “rent,” as lawyers for QC Holdings insisted.

QC Holdings’ Andersen and his wife Jill also heavily backed former Kansas Republican Kevin Yoder, who was the subject of an October 2015 ethics complaint after the congressman allegedly took contributions from the payday lending industry in the weeks surrounding his support of legislation that would help the industry. In early 2011, Yoder received $24,800 from the payday industry, including $10,000 from QC Holdings before and after he co-sponsored anti-CFPB legislation.

Yoder would then receive $36,757 from payday lenders between August and October 2013 after signing on to an anti-CFPB letter to the Attorney General and co-sponsoring another anti-CFPB bill in October 2013. Of this, he received an additional $10,000 from the Andersens. In total, Darrin, his wife Jill, And QC Holdings contributed a combined $101,000 to Rep. Yoder during his time in Congress.

Finally, QC Holdings and Darrin Andersen have backed other anti-CFPB lawmakers and members of the House Financial Services Committee (HFSC) and Senate Banking Committee. Among them are:

Former Rep. Lynn Jenkins (R-KS), who took $163,500 from the payday lending industry and co-sponsored legislation to eliminate the CFPB directorship, also took $90,900 from the Andersens and QC Holdings during her time in office.

QC Holdings’ PAC has contributed at least $59,000 to House Financial Services Committee Republicans who signed a July 2023 amicus brief supporting the CFSA’s lawsuit, including $23,500 to Rep. Ann Wagner (R-MO) and $13,500 to Chairman Patrick McHenry (R-NC).

QC Holdings has also contributed at least $19,000 to Republicans on the Senate Banking Committee who signed a July 2023 amicus brief, including $5,000 to Ranking Member Tim Scott (R-SC).

USA Cash Services, a Utah-based payday lender with APRs as high as 1,460%, is represented on the board of the Community Financial Services Association of America (CFSA) by its owner Kip Cashmore, according to a 2021 IRS form 990.

A review of Cashmore’s business dealings shows a shady history of fundraising for lawmakers who would benefit the payday industry and associating with individuals running a Ponzi scheme. In a June 2011 email then-Utah Attorney General candidate John Swallow urged Cashmore to raise $100,000 from payday lenders and stated that if elected, he was “‘ready and willing to help lead out on that‘” in reference to pushing back against federal regulations against payday lending. Swallow ultimately funneled hundreds of thousands of dollars in contributions through a web of nonprofits, including $100,000 from Cashmore’s company and other lenders. Only a year into his position as AG, Swallow resigned from his position following investigations into his “widespread ethics violations.”

Prior to Cashmore bundling money to Swallow, he was tied to a Ponzi scheme that defrauded 500 people out of $8 million. Two years after the head of the scheme was sent to prison in 1998, it was reported Cashmore—who was an Amway contractor at the time—made out with a whopping $475,000.

Finally, a review of Cashmore’s contributions shows he has contributed at least $5,000 to Republicans on the House Financial Services Committee who signed a July 2023 amicus brief in support of the CFSA’s lawsuit, the majority of which went to current chairman Patrick McHenry (R-NC).

According to the Community Financial Services Association of America’s 2021 IRS Form 990, chief CNG Holding’s chief legal and compliance officer Andrea Andre serves as the trade group’s Vice President while her company’s subsidiaries charge APRs as high as 912%.

A review of FEC records shows that CNG Holdings, Inc. PAC has contributed $57,800 to Republican members of the House Financial Services Committee who signed on to a July 2023 amicus brief supporting the CFSA, including $11,500 to Chairman Patrick McHenry (R-NC). CNG has also contributed $27,200 to Republicans on the Senate Banking Committee, a majority of which has gone to Ranking Member Tim Scott (R-SC), who also signed on to the amicus brief.

In addition to its contributions, CNG chief government affairs officer John Rabenold was fined $2,000 in 2014 after it was found he didn’t disclose lavish gifts to state lawmakers while a registered Ohio lobbyist for the affiliated Axcess Financial. Allegedly Rabenold did not disclose he purchased tickets to the Cincinnati Bengals and planned upscale dinners for lawmakers. During this time, he lobbied against efforts by lawmakers to regulate the payday lending industry.

Finally, a review of CNG Holdings on the Consumer Financial Protection Bureau consumer complaints database returns nearly 1,800 complaints. The majority of these complaints regarded the company’s debt collection process and payday loans.

LendingBear, a Jacksonville-based payday lender with APRs as high as 456%, is represented on the board of the Community Financial Services Association of America (CFSA) by its President Brian Lynn. According to its website, LendingBear is also a member of INFiN as well as the Pawnbrokers Association. Meanwhile, the lender touts the “CFSA seal” as a “validation that the payday lender you’re working with is of high quality” and “completely transparent.”

Brian Lynn is a staunch critic of the CFPB, contributing to industry groups and praising efforts by the Trump administration to roll back regulations, while denouncing rulemaking by the Bureau impacting the payday industry.

Lynn has contributed $1,000 to staunch CFPB opponent Rep. Blaine Luetkemeyer (R-MO), a member of the House Financial Services Committee who signed a July 2023 amicus brief in support of the CFSA’s lawsuit challenging the CFPB’s funding.

FEC records show Lynn has contributed at least $17,500 to CFSA and an additional $2,500 to INFiN, a trade group of payday lenders.

In May 2020, Lynn applauded the Trump Administration’s rollback of the CFPB’s payday lending rule requiring lenders to make sure borrowers could adequately pay back a loan. Lynn called the move, “good news for Florida consumers and small businesses,” despite consumer advocates calling the rollback “a grave error” that “dismantl[ed] guardrails” meant to protect consumers from predatory lenders.

Lynn also defended former CFPB director Kathy Kraninger from the criticism she received from “bureaucrats and special interest groups” who he claimed “disregarded the voices of the very people they claim to want to protect.”

According to a 2021 IRS form 990, Capital Corporation President & CEO C. Dan Adams serves on the board of the Community Financial Services Association of America (CFSA). Founded by Adams in 1991, the firm operates in investment banking and has completed several mergers and acquisitions, including investments in consumer lender Integrity Funding.

While serving as chairman of the now-failed First National Bank of the South, Adams and his firm severely mismanaged the company. In July 2010, the FDIC shut down the bank after “a two-year fight to stay afloat.” The firm acknowledged its underwriters failed to follow its own guidelines while approving loans that did not meet its requirements. Filings from the Securities & Exchange Commission show that Adams, who signed the bankruptcy paperwork, earned nearly $68,000 in compensation for attending board meetings between 2006 and 2009.

In addition to mismanaging a major regional bank, Adams has worked extensively to undermine efforts to regulate the payday industry. Among these efforts include:

In April 2013, Adams was identified as one of the payday lenders “openly working to kill anything and everything” related to payday regulations after arguing before a Texas House committee following the passage of a Texas Senate payday bill.

In 2018, Adams was found to have bundled over $151,000 to South Carolina governor Henry McMaster, who was previously forced to return $69,200 in improper contributions after violating campaign finance laws.

According to FEC records, Adams has contributed a combined $153,850 to Republicans on the House Financial Services Committee (HFSC) and Senate Banking Committee who signed a July 2023 amicus brief supporting the CFSA’s lawsuit, including $48,000 to HFSC Chair Patrick McHenry (R-NC) and $27,600 to Senate Ranking Member Tim Scott (R-SC).

Finally, Adams has contributed a combined $37,500 to the payday industry, including $25,000 to CFSA and $12,500 to INFiN.

According to a 2021 IRS Form 990, former PROG Holdings general counsel & corporate secretary Vin Thomas serves on the board of the Community Financial Services Association of America (CFSA).

PROG Holdings’ subsidiaries have faced numerous lawsuit and fines for consumer mistreatment, including:

In August 2022, Progressive Leasing—a subsidiary of PROG Holdings—faced a lawsuit from the Pennsylvania Attorney General after the firm allegedly “used deceptive practices to take advantage of low-income” consumers after violating state laws meant to protect consumers by failing to disclose rent-to-own requirements. The misconduct came to light after agents of the Office of the Attorney General visited stores using Progressive Leasing, which had “widespread non-compliance,” leading a stockholders rights firm to open an investigation into whether or not PROG Holdings “violated federal securities laws and/or engaged in other unlawful business practices” which resulted in the firm’s stock prices drastically falling.

In April 2020, Progressive Leasing paid $175 million to settle a Federal Trade Commission lawsuit alleging the lender “frequently” misled consumers by charging consumers twice the advertised ticket price for payments on rent-to-own items. Then-FTC director Kelly Slaughter said, however, “the settlement did not go far enough,” as consumers ultimately paid “more than $1 billion in extra fees and charges.”

In August 2022, PROG Holdings’ subsidiary Four Technologies, a buy now, pay later (BNPL) firm, paid $2,500 in penalties and fines, while refunding $13,065 in fees illegally collected in California. The suit was brought by the California Department of Financial Protection & Innovation, which “regulates a variety of financial services, products, and professionals,” including the payday lending industry.

According to a 2021 IRS 990 form from the Community Financial Services Association of America (CFSA), PH Financial CEO Robert Zeitler sits on the payday industry group’s board of directors while his companies charge APRs as high as 782%. Zeitler has been a staunch opponent of the Consumer Financial Protection Bureau (CFPB), with a history of criticizing the CFPB for efforts to better regulate the payday lending industry:

In June 2016, Zeitler railed against the CFPB’s proposed payday lending rule claiming the Bureau wanted to “put [him] out of business” and wasn’t interested in the “perspective” of the lending industry. He also claimed that small businesses “were just another hurdle” for the agency in its goal of eliminating the payday lending industry.

In March 2017, Zeitler claimed that “Operation Choke Point,” which sought to regulate bank relationships with payday lenders and other businesses, and CFPB actions were an attack by “unelected bureaucrats” to essentially “shut down the entire” short-term lending industry.