In addition to full compliance with all state and federal laws and regulations, CFSA requires its members to abide by a strict set of mandatory best business practices. These best practices are intended to cover all small-dollar loans provided by CFSA member companies, including payday advance, automobile title, and installment loans. Compliance with mandatory Best Practices is just one way in which CFSA member companies set themselves apart from others in the small-dollar lending industry.
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 include requiring our members to:
These CFSA Best Practices 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 Best Practices have been in effect since 2000 and were enhanced in 2018 to better serve and protect CFSA member companies’ customers.
To view all CFSA Best Practices, click here.