Responsible lending and borrowing
When involved in a lending process both lenders and borrowers must act responsibly. But what does that mean?
Our goal is to protect our clients from predatory and deceptive lenders! All responsible lenders need to know the borrower’s financial background. They run credit checks to find out if he/she is able to pay back the loan on time. Honest lenders give proper loan amounts that don’t burden the borrower and fits into his budget.
Often, tricky lenders want to entrap borrowers in a cycle of debt. This happens by lending a large amount of money which is hard to repay. Also, they set a very high APR on loans. The federal and state authorities have adopted a series of legal acts and laws, that regulate money lending. All legitimate lenders must follow these rules.
Fair Debt Collection Practices Act
We can’t collect debts from our clients because we don’t lend money. But lenders proceed to this action in case that the borrowers don’t pay off the loans. When doing so, the lenders must follow the Fair Debt Collection Practices Act’s strict guidelines. The Act stands to prevent abusive actions that may violate customer’s rights, like:
- Using harassing language or methods to collect debts;
- Contacting debtors before 9 a.m. or after 8 p.m.;
- Falsifying information to collect a debt;
- Acting against The Law.
Detection of any illegal actions causes immediate removal of this lender from our network. Contact us to report any abusive or criminal actions!
Fair Lending Act
The Fair Lending Act claims for providing all people with equal access to credit, despite their age, race, creed, gender, religion or another non-financial factor. The Act ensures that borrowers are not discriminated and have free access to loans or other types of credit, as long as they comply with the guidelines for getting such credit. Contact the Equal Opportunity and Fair Lending Office of your local Consumer Financial Protection Bureau, if you are facing any discrimination.
Truth in Lending Act
The Truth in Lending Act was established to certify that consumers have all information about an offer before signing the contract or extending any current credit. Lenders must disclose the information related to the terms and conditions of credit rates, fees, charges before lending the money. Each state has different regulations on short-term and long-term lending. Lenders must adjust their offers in compliance with these laws.
Direct Loan Lenders’ Priorities
Our goal is to educate the clients about short-term and online personal lending. Our team of experts has gathered information on the all aspects of the lending industry. We are publishing this information in an easy and clear form. This will allow the borrowers to understand their rights and laws better.
Loans Regulation by State
To protect consumers from shady lenders, some states have elaborated specific rules and laws. These rules cap loan amount, fees, interest and number of loan renewals. Check your state limits and regulations on our Rates and Fees page.
Thanks to our team of experts, people are informed about the responsible use of online loans. They also know how the short-term lending industry works. Do you want to become one of them? To do so, always evaluate the need for taking loans. Check out factors the aspects like: the needed amount and interest rate before applying for a loan. Check, how much you can you pay back without resorting to a credit getting burdened. Make sure that all bills, debts, and expenses are less than your income. Asking for less money as possible is a good habit of a responsible borrower! Try to make savings.
Look into all the possible options!
Before asking for a loan, check the following itemsaspects:
- The loan offer is clear and you understand the terms, interest rate, extra fees and penalties.
- Analyze your current financial situation and make sure you can repay the loan on time.
- Ask yourself, if you really need to borrow.
- Look for other ways of getting extra cash, like friends, family or a part-time job.
- Keep in mind that responsible use of loans depends on you!
A creditworthy borrower with good credit score, is favored by all lenders.
Tips on ensuring responsible borrowing
- Respect the schedule. Always make payments on time. Inform the lenders and discuss the best possible ways out, if you can’t pay back. Lenders will note that you care about your debt and you are a responsible borrower.
- Pay whenever you can. If there is a possibility to pay off your loan earlier – do it! The sooner you are done, the more you save on interest.
- Be explicit and honest. Let lenders know your real financial background. Don’t hide any details. This will help you look trusty and have an accurate and secure profile.