WASHINGTON — The Community Financial Services Association, the trade association for payday lenders, has denounced a recent Department of Defense report that asked Congress for laws that would regulate how payday lenders lend money to members of the U.S. military.

"This study is simply a rehash of unsubstantiated claims that have already been discredited. In fact, certain conclusions in the report directly contradict research conducted by the current chair of the FDIC, government agencies, foundations and academics involved in financial issues and study," said Darrin Andersen, president of CFSA.

"The Pentagon's recommendations to eliminate an affordable short-term loan option that is regulated in 37 states and the District of Columbia will hurt military personnel," Andersen continued. "They will be driven into the arms of unregulated offshore Internet lenders or forced to choose between more expensive alternatives such as bounced check or overdraft protection fees, or late bill payment fees."