Before applying for a loan, you should get to know the policies that govern the loan lending business. CallCash.com offers most of the information you need to learn about these policies; however, you should also investigate your state’s local laws. Policies concerning illegibility, fees, term lengths and interest rates may vary from state to state. For example, certain states, including Maine and Maryland, have banned payday loans or enforce heavy restrictions on the terms.
Truth in Lending Act
The Truth in Lending Act safeguards consumers from receiving inaccurate, unfair or incomplete information from cash advance loan lenders. Under this act, lenders must keep a written account of the loan details, such as interest rates, rollover fees and late fees, and present the information to potential consumers. In this way, consumers can make wise and well-informed decisions.
Fair Debt Collection Practices
Fair Debt Collection Practices prevent cash advance loan lenders from using unfair or annoying tactics when collecting debts. For example, the lenders in our network will not:
- Make violent threats
- Use false statements or deceit
- Utilize profane language
- Publish your name and the amount of your debts
If your loan lender disregards the Fair Debt Collection Practices, you can contact the Federal Trade Commission, which enforces these policies. Additional details are available on Federal Trade Commission’s document on Fair Debt Collection Practices.
The Dodd-Frank Wall Street Reform Act says that cash advance loan lenders should adhere to fair lending policies. Fair lending is considered “fair, equitable, and nondiscriminatory access to credit for consumers.” Any deviations from these policies should be reported to the Consumer Financial Protection Bureau.
Late Payment Policy
A lender’s late payment policy addresses the additional fees you will be responsible for in case of a late payment. You will find information regarding this policy on the lender’s contract, so review it carefully before agreeing to the terms. CallCash.com allows you to compare multiple lender contracts, so don’t feel obligated to sign a contract, especially if the late payment fees seem potentially overwhelming.
If you allow late payment fees to overwhelm you, you may be subject to additional fees or criminal charges. Examine your state’s non-payment regulations to assess potential repercussions of failing to pay your lender. Lenders who belong to the Community Financial Services Association of America (CFSA) will not issue criminal charges; however, they will continue to pursue owed payments in a reasonable manner. Rather than face these complications, aim to pay off your loan in a timely manner.
Loan Renewal and Rollover Policy
In some cases, you may be able to extend the conditions of your cash advance loans. Policies regarding loan renewals must follow state regulations. Before a payday loan renewal is necessary, you should instead aim to pay off your existing debt. Rollover fees can be a costly option when interest rates and late fees are also taken into account. Be a wise consumer and only allow the renewal process to take place if necessary. Carefully review your loan lender’s contract for more information on renewal policies.