WASHINGTON — The Community Financial Services Association of America, an association representing roughly 50% of payday lenders in the U.S., is promulgating a working paper prepared by a researcher at the Federal Reserve Bank of New York that suggests statewide bans on payday lending have hurt consumers in those states.

Donald Morgan, a research officer at the Bank and Michael Strain, a graduate student assistant, prepared the working paper to be "distributed to economists and other interested readers solely to stimulate discussion and elicit comments" and clearly stated that it does not represent the view of the Bank.

Nevertheless the CFSA has promoted the paper, contending that it shows consumers in Georgia and North Carolina, states which had payday lending and eliminated it, have been hurt by the bans.