To ensure a smooth loan lending process, you should take the time to learn about the policies that govern the industry. MyPaydayLoans.com offers the information you need to become a safe and smart consumer.
No Hidden Fine Print
The Truth in Lending Act is in place to ensure that consumers are fully informed on the details of the loan lender’s cash advance contract. Under this federal law, loan lenders must offer, in writing, an account of the exact fees, rates and possible additional costs of the payday loan. This information is presented before the consumer signs the contract, so a careful evaluation of the lender’s services can be made. Visit Office of the Comptroller of the Currency’s page on the Truth in Lending Act for more details.
Equal Lending for All
The Dodd-Frank Wall Street Reform Act requires that cash advance loan lenders follow fair lending policies. Fair lending policies involve “fair, equitable, and nondiscriminatory access to credit for consumers.” Direct any complains to the Consumer Financial Protection Bureau, which enforces the detailed regulations. For more details on the act, go to the U.S. Commodity Futures Trading Commission’s Dodd-Frank Act page.
Collecting Debt Fairly
The Federal Trade Commission enforces Fair Debt Collection Practices, and you can count on our network of cash advance lenders to follow these regulations. Fair Debt Collection Practices include avoiding contact with consumers before 8 a.m. or after 9 p.m., avoiding deceitful tactics during debt collection and communicating without the use of profane or obscene language. In addition, no threats of legal recourse are tolerated when legal action is unpermitted. For example, a lender cannot threaten to have you arrested or seize your property without true legal backing. Report lenders who disregard these practices to the the Federal Trade Commission. Visit the Federal Trade Commission’s document on Fair Debt Collection Practices for additional information
Local and State Payday Loan Laws
Contracts offered by cash advance loan lenders are bound by local state regulations as well as by federal laws surrounding the payday loan industry.
These payday loan regulations may impact the following aspects of your loan terms:
- Rollover fees and limits
- Maximum loan terms
- Cool-down periods between loans
- Presentment limits
Paying Loans Late
Because lenders are required to disclose the details of their late payment policies, there’s no reason for you to get tangled up in late fees. Simply review a lender’s late fee policy before accepting the contract. If the late payment policy doesn’t seem to be in your best interest, search for another lender. Remember that each lender must set late fees that are within the terms of the state’s local laws.
Not Paying Loans Back
While lenders must follow the Fair Debt Collection Practices in regards to non-payment policies, additional fees may result from your inability to pay existing debts. Fortunately, if your lender belongs to the Community Financial Services Association of America (CFSA), criminal charges will not arise. If you have carefully planned out your repayment course, you will not need to worry about the legal repercussions.
Renewing a Loan
If you wish to extend the terms of your payday loan, you can settle for a loan renewal. However, the terms and conditions of these renewals policies are influenced by state regulations. Study your local state laws concerning the renewal process and conditions of the rollover. You don’t want to end up owing extra dollars when you should be using the payday loan to improve your financial standing.