Dollar Financial Group, Inc. is a member of the Community Financial Services Association. To be a member in good standing of CFSA, a payday advance provider must abide by the following best practices:
Full disclosure. A member will comply with the disclosure requirements of the
state in which the payday advance office is located and with Federal disclosure
requirements, including the Federal Truth in Lending Act. A contract between a
member and the customer must fully outline the terms of the payday advance
transaction. Members agree to disclose the cost of the service fee both as a
dollar amount and as an annual percentage rate (“APR”).
Compliance. A member will comply with all applicable laws. A member will
not charge a fee or rate for a payday advance that is not authorized by state
or Federal law.
Truthful advertising. A member will not advertise the payday advance
service in any false, misleading, or deceptive manner.
Encourage consumer responsibility. A member will implement procedures to inform consumers of
the intended use of the payday advance service. These procedures will include
notifying consumers that a payday advance is a short-term cash flow tool not
designed as a solution for longer term financial problems and informing
customers of the availability of credit counseling services.
Rollovers. A member will comply with state laws on
rollovers (the extension of an outstanding advance by payment of only a fee).
In states where rollovers are not specifically allowed a member will not under
any circumstances allow a customer to do a rollover. In the few states where
rollovers are permitted, a member will limit rollovers to four (4) or the state
limit, whichever is less.
Right to rescind. A member will give its customers the right to
rescind, at no cost, a payday advance transaction on or before the close of the
following business day.
Appropriate collection practices. A member must collect past due accounts in a professional,
fair and lawful manner. A member will not use unlawful threats, intimidation,
or harassment to collect accounts. CFSA believes that the collection
limitations contained in the Fair Debt Collection Practices Act (“FDCPA”)
should guide a member’s practice in this area.
No criminal action. A member will not threaten or pursue criminal action against
a customer as a result of the customer’s check being returned unpaid or the
customer’s account not being paid.
Enforcement. A member will participate in self policing of the industry.
A member will be expected to report violations of these Best Practices to CFSA,
which will investigate the matter and take appropriate action. Each member
company agrees to maintain and post its own toll-free consumer hotline number
in each of its outlets.
Support balanced legislation. A member will work with
state legislators and regulators to support responsible legislation of the
payday advance industry that incorporates these Best Practices.
Relationships with financial institutions. A member may market and service payday advances
made by a federally insured financial institution, provided the financial
institution does the following: (1) sets its own credit criteria; (2) approves
and funds each advance; (3) complies with applicable state disclosure
requirements, where not inconsistent with Federal law; (4) complies with
applicable state law as to the number of rollovers; (5) permits the member to
purchase no more than a de minimis
amount of the advances, or any such other amount which may be consistent with
safety and soundness determinations by Federal or state banking regulators; (6)
complies with the guidelines and regulations on payday lending issued by the
financial institution’s Federal or state regulator; and (7) complies with these
Best Practices unless the Best Practices conflict with this Paragraph, in which
case the terms of this Paragraph shall apply.
Military. A member will comply with a separate code of Military Best
Practices that addresses the unique circumstances of active duty military
customers. These special consumer protections include, among others: a
prohibition on the garnishment of military wages or salaries and on contacting
the military chain of command to collect payment; and the establishment of
financial literacy initiatives that will benefit service men and women.
For more information please see the CFSA website at:
http://www.cfsa.net/genfo/egeninf.html
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