In addition to full compliance with all state and federal laws and regulations, CFSA requires its members that offer small dollar loans to abide by a strict set of mandatory best business practices.
These CFSA Best Practices, which have been in effect since 2000, demonstrate responsible lending in the small-dollar credit industry with strong consumer protections. Through these Best Practices, CFSA works to ensure our member companies hold themselves to a higher standard of responsible lending and to help consumers make informed financial decisions.
CFSA member companies have always met or exceeded existing state regulations for transparent disclosure of fees and terms. For example, CFSA Best Practices require full, clear, and prominent disclosure of loan fee and term information on poster-sized displays inside all storefronts, including the cost in both dollar amount and as an annual percentage rate. In addition, CFSA Best Practices require members to provide customers the right to rescind a short-term loan at no cost on or before the close of the following business day. Other significant consumer protections provided by the Best Practices require our members to:
CFSA takes important steps to ensure that its member companies are in compliance with these Best Practices through the following:
CFSA members understand the importance of holding themselves to a higher standard. Compliance with mandatory Best Practices is one way in which CFSA member companies set themselves apart from others in the small-dollar lending industry.