How We Practice Responsible Lending
1. Thorough Affordability Assessment
Before approving any loan, we conduct a comprehensive analysis of the borrower's ability to repay. This isn't just about credit scores—we look at the complete financial picture.
Our assessment includes:
- Income Verification: We require proof of regular, verifiable income from employment, self-employment, benefits, or other legitimate sources.
- Expense Analysis: We consider existing debt obligations, living expenses, and other financial commitments.
- Debt-to-Income Ratio: We calculate how much of the borrower's income is already committed to debt payments.
- Payment Capacity: We ensure the proposed loan payment fits comfortably within the borrower's budget.
✓ Real Example
If an applicant earns $2,000 per month with $800 in existing debt payments, we would not approve a loan requiring an additional $600 monthly payment, even if they qualify based on credit score alone. The total debt burden would be 70% of income, which is unsustainable.
2. Clear and Transparent Communication
Confusion breeds mistrust and poor decision-making. We communicate in clear, plain language and ensure customers understand exactly what they're agreeing to.
Our transparency standards:
- All APRs and fees are disclosed before the customer signs anything
- Loan documents use plain language, avoiding legal jargon where possible
- Total cost of the loan is clearly stated, including all interest and fees
- Payment schedule shows exact dates and amounts for every payment
- Customers receive copies of all documents for their records
💡 Our Promise
If you don't understand something in your loan documents, we haven't done our job. Our customer service team is available to explain any aspect of your loan in terms that make sense to you.
3. Responsible Product Design
Our loan products are specifically designed to be affordable and beneficial to borrowers, not to maximize profit at their expense.
Key product features:
- No Prepayment Penalties: We encourage early repayment to save on interest. There's never a penalty for paying off your loan early.
- Bi-Weekly Payments: Our default payment schedule aligns with how most people are paid, making budgeting easier.
- Reasonable Terms: Loans are repaid over 10-21 months, not 2-4 weeks like Online Loans, giving borrowers time to repay comfortably.
- Fixed Rates: Interest rates never change during the loan term, ensuring predictable payments.
- Credit Building: We report payment history to credit bureaus, helping borrowers build or rebuild credit.
4. Protection Against Over-Indebtedness
We have multiple safeguards to prevent customers from taking on more debt than they can handle.
- Loan Limits: Maximum loan amounts are based on income and existing obligations, not just willingness to borrow.
- Cooling-Off Period: Customers cannot immediately take out a new loan after paying off a previous one without re-evaluation.
- Refinancing Restrictions: We don't encourage or facilitate continuous refinancing that extends debt indefinitely.
- Declining Renewals: If our assessment shows a borrower is struggling, we may decline a new loan even if they want one.
⚠️ When We Say No
Sometimes responsible lending means declining an application. If we determine that a loan would be harmful to an applicant's financial situation, we will not approve it—even if it means losing a customer. Your long-term financial health is more important than our short-term profit.
5. Financial Education and Support
Access to credit is only part of the solution. We believe in empowering customers with knowledge and resources to improve their overall financial situation.
Educational resources we provide:
- Comprehensive blog with articles on credit building, budgeting, and financial wellness
- Free loan calculators and budgeting tools
- Guides on disputing credit report errors
- Information about building emergency funds
- Strategies for debt reduction and management
- Links to non-profit credit counseling services
6. Fair and Respectful Collection Practices
We understand that financial difficulties happen. Our approach to collections prioritizes communication and problem-solving over aggressive tactics.
Our collection philosophy:
- Early Communication: We reach out before accounts become seriously delinquent to offer solutions.
- Hardship Programs: We have programs for borrowers facing temporary financial difficulties.
- Reasonable Contact: We don't harass customers with excessive calls or threatening language.
- FDCPA Compliance: All collection activities comply with the Fair Debt Collection Practices Act.
- Payment Plans: We work with customers to establish manageable payment arrangements when needed.
✓ If You're Having Trouble
If you anticipate difficulty making a payment, contact us immediately. The earlier we know about a problem, the more options we have to help. We've helped thousands of customers through temporary financial setbacks without damaging their credit or adding excessive fees.
7. Privacy and Data Security
Protecting customer information is a fundamental responsibility. We employ multiple layers of security and privacy protection.
Security measures:
- Bank-level 256-bit SSL encryption for all data transmission
- Secure servers with restricted access
- Regular security audits and penetration testing
- Employee training on data protection
- Compliance with GLBA (Gramm-Leach-Bliley Act)
- Immediate notification protocols for any data breach (none to date)
Privacy commitments:
- We never sell customer information to third parties for marketing
- Data is shared only with service providers necessary for loan operations
- Customers can access their data and request corrections
- We honor opt-out requests for marketing communications
8. Regulatory Compliance and Oversight
We don't just meet minimum legal requirements—we strive to exceed them and advocate for fair lending practices industry-wide.
Compliance framework:
- State Licensing: Fully licensed in all 26 states where we operate
- Federal Compliance: Adherence to Truth in Lending Act, Fair Credit Reporting Act, and Equal Credit Opportunity Act
- Regular Audits: Internal and external compliance audits
- Staff Training: Ongoing training on lending laws and ethical practices
- Complaint Resolution: Formal process for addressing customer complaints
9. Continuous Improvement
Responsible lending is not a static achievement—it requires ongoing evaluation and improvement of our practices.
- Regular customer feedback surveys
- Analysis of complaint patterns to identify systemic issues
- Monitoring of industry best practices
- Participation in industry discussions about responsible lending
- Annual review of policies and procedures
10. What We Don't Do
Sometimes responsible lending is about what you refuse to do, even if it's legal and profitable.
- No Online Loans: We don't offer short-term, high-cost loans that trap people in debt cycles
- No Prepayment Penalties: We never punish customers for paying early
- No Automatic Rollovers: We don't automatically refinance loans into new debt
- No Pressure Sales: Our staff is never compensated based on loan volume, eliminating pressure to approve questionable applications
- No Hidden Fees: Every charge is disclosed upfront in writing
- No Deceptive Marketing: Our advertising is clear, honest, and not misleading