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Responsible Lending

Responsible Lending

Last Modified: May 15, 2020

Introduction

Although we are not a lender, BrighterPays.com (“We”) are committed to Responsible Lending by making sure we only work with reputable lenders in the industry who are committed to fair lending practices and complying with applicable laws. Although we strive to be diligent in choosing our lending partners, we also encourage consumers to research the rules and regulations regarding short-term loans, specifically the Truth in Lending Act (the “TILA”), which requires lenders to fully disclose all loan fees and interest rates that borrowers may incur.

Truth In Lending Act

Loan terms will vary between different lenders, such as the loan amount, the annual percentage rate (“APR”) for the loan, costs of the loan, and the repayment plan. Lenders are required by the TILA to present to you the terms of the loan, the rates and all costs associated with the loan prior to your execution of the loan documents. It is important that you thoroughly review the rate and fee information provided to you by your lender prior to agreeing to the terms of any loan. You are under no obligation at any time to accept these loan terms if you determine they are unsuitable. It is important to remember that the loan interest rates, fees, and loan terms are determined solely by your lender. Because we are not a lender, we have no control or knowledge of the loan details between you and your lender. In addition, some states have their own regulations concerning personal loans and credit, and consumer should carefully compare any loan offers to the regulations within their states.

Fair Debt Collections Practices

We strive to ensure that the lenders in our network understand and adhere to the guidelines set forth by the Fair Debt Collection Practices Act (the “FDCPA”) at a minimum. Since we are not a lender, we cannot make any attempt to collect debts from consumers—this is handled by the lenders themselves or through their debt collecting agencies. Essentially, the FDCPA protects consumers from oppressive, abusive or harmful activities as they pertain to debt collection. The FDCPA cites the following as violations:

  • Threatening legal action when legal action is not permitted
  • Misrepresenting a company or using deception in an attempt to collect a debt
  • Annoying, abusing, harassing or using profanity toward consumers in an attempt to collect a debt
  • Attempting to contact consumers before 9am or after 8pm in their local time zones

If any of the lenders in our network are found to be in violation of these guidelines, they will be immediately removed from our network and reported through the proper channels.

Fair Lending Act

The Fair Lending Act exists to ensure that all consumers are provided with fair, equal and nondiscriminatory access to credit and personal loans. If you feel that you have been discriminated against for anything other than a valid financial reason, we urge you to file a complaint with the Fair Lending and Equal Opportunity office of your local Consumer Financial Protection Bureau.

State Regulations

In an effort to better control the personal loan industry, many states have designed their own regulations about the time consumers have to repay loans, maximum loan amounts, maximum charges and more.

In some cases, you may be given the option of obtaining a loan from a tribal lender. Lenders that are an extension of a federally recognized Indian Tribe are owned by independent sovereign nations and may not be required to follow local or state laws regarding rates, fees and other loan terms, although such lenders conform to federal lending laws including the TILA. If you are connected to a tribal lender, please understand that the tribal lender’s rates and fees may be higher than state-licensed lenders. Additionally, tribal lenders may require you to agree to resolve any disputes in a tribal jurisdiction.

Late Payment

Short term lenders may have different policies regarding late payments. Please ensure that you thoroughly review the late payment policy detailed in the loan documents and loan contract your lender provides before electronically signing and thereby agreeing to the loan terms. It is important to note that all lenders must abide by applicable federal and state laws and regulations regarding late payment fees. You are encouraged to research and review the applicable laws regarding short term loans and late payments in the state which you reside.

Non-Payment

In the event that you are unable to repay your loan, your lender may impose additional fees or charges. We use commercially reasonable efforts to only work with a network of reputable lenders who are committed to using fair and reasonable debt collection practices. All lenders must abide by applicable federal and state laws and regulations regarding collections of past due accounts. We encourage consumers to not accept any loans that they cannot repay.

Loan Renewal

Lenders may have different terms and policies regarding loan renewal options and it is important for you to thoroughly read your lender’s loan renewal terms before signing and accepting a loan. Where rollovers or repayment extensions are granted, interest rates, along with any late fees and additional charges that may be imposed, can substantially increase the dollar amount to the end cost of your loan. You are encouraged to review and understand your lender’s terms regarding loan renewal options before signing the loan contract.