Policy on Responsible Lending
Compliance with State and Federal Laws
All lenders and their affiliates are expected to follow relevant federal, state, and local regulations. These rules may cover interest rate caps, loan duration, rollover limitations, frequency of borrowing, and applicable fees. Before proceeding with any loan, it's important that you understand the terms, the nature of the loan, and the legal obligations both for you and for the lending party.
Transparency Under the Truth in Lending Act (TILA)
Lenders must provide clear, written disclosures outlining interest rates, fees, and all terms of the loan in accordance with the Truth in Lending Act. These details must be shared with you prior to finalizing any agreement. Lending terms must not violate any governing rules or legal restrictions, and most conditions will be dictated by the laws of the state in which the loan is issued.
Fair Lending and the Dodd-Frank Act
The Dodd-Frank Wall Street Reform and Consumer Protection Act ensures lenders treat all applicants fairly. This act grants authority to the Consumer Financial Protection Bureau (CFPB) to implement rules that prevent exploitative and discriminatory lending practices. Lenders must not vary terms based on race, age, gender, or ethnicity when borrowers have similar credit qualifications.
Identity Verification and Federal Requirements
To comply with federal regulations aimed at preventing money laundering and terrorism financing, lenders are legally required to verify your identity when opening an account or applying for a loan. This may include collecting your full name, birth date, residential address, Social Security number, and other identifying information. You may also be asked to present valid government-issued identification to confirm these details.