Cash Advance Industry Standards

Cash advance industry standards have been defined by the Community Financial Services Association, or CFSA, an appropriate task for this industry trade association considering the explosive growth of the cash advance industry. Standards are listed on CFSA’s website which has been designed as a one-stop source for all types of cash advance issues. The site is so helpful that it’s visited regularly by lenders as well as the general public.


Among its many services, by far the most important is the establishment of industry standards for cash advance companies, also known as payday loan lenders. Before a cash advance business can become a member of this respected organization, the business operator has to agree to abide by the association’s Best Practices. It’s not an exhaustive list; in fact the Best Practices consists of only 11 core standards.


Sampling of Cash Advance Industry Standards


One of the cash advance industry standards states that, “A member will not advertise the payday advance service in any false, misleading or deceptive manner.” A simple standard, but it’s one that offers the consumer much assurance. With competition so fierce, it’s tempting to make all sorts of promises. When you work with members of CFSA, however, you don’t have to worry about the company promising you one thing and then ending up with something different than what you were led to expect.


Another of the important cash advance industry standards requires that members fully disclose all aspects of the cash advance including the service fee that is being charged. Besides mentioning the fee scale, members of the CFSA must convert their fees into an Annual Percentage Rate (APR). Important again so that borrowers know exactly how much the cash advance is going to cost.


The Best Practices also ensure that members abide by each state’s laws as they pertain to loan rollovers, or extensions. Some states prohibit rolling over a cash advance loan, while other states limit the number of times the borrower can rollover the advance. In states where they’re allowed, a rollover is an option in the event that the borrower does not have sufficient funds to repay the cash advance on the due date. That cash advance can be rolled over, along with a new fee, until the borrower’s next pay date.


One of the more impressive cash advance industry standards is the one in which members of CFSA agree to self-enforce the industry. Basically, this means members will voluntarily report all known violations of the Best Practices Guidelines. Each agrees to operate a toll-free phone number for reporting such violations.


Several more cash advance industry standards are outlined in CFSA’s Best Practices including an important one regarding the collections process. From time to time borrowers default on their cash advance obligations. When this happens, members promise to proceed with collection activities professionally and in a non-threatening manner.


These cash advance industry standards were designed to protect you, the consumer. Make sure that you’re doing business with only those businesses that promise to uphold these cash advance industry standards.

Cash Advance Company - How To Choose A Cash Advance Lender

Cash advance companies differ in how soon they deliver money, structure their fees, and process applications. To find a payday loan that best fits your needs, decide what you most want – speedy money, low fees, or an easy application process. Then do a quick scan of lenders to find the best match. In just a few minutes, you can find the perfect cash advance company for you.


Decide What Service You Most Want


When you start looking for a lender, decide what you most want out of a payday lender. If you are looking for speedy cash in a matter of hours, expect to pay higher finance fees. However, if you are willing to wait a little longer or fax in some documentation, you can find lower fees for larger amounts.


By prioritizing your needs, you can focus your search on payday loan lenders that are most relevant. In a few minutes, you can search for the company with the best delivery time, rates, or application process.


The Differences In Lenders


Online payday loan applications make for speedy loans, often processed in a matter of minutes. In general you will get your cash the next business day, but there are companies who process funds in less than an hour. These companies usually have higher fees since they have staff 24 hours a day.


For the easy application process, go with a faxless program. That way you won’t have to search for your pay stub or bank records. With databases, lenders are able to verify your application without paperwork.


The lowest rates are usually found with lenders that require additional documentation. By having you fax in copies of your financial information, they reduce the risk of fraud and pass the savings onto you.


Where To Search For Payday Loan Lenders


With the internet, you can search for payday loan lenders from across the country. With so many choices, you can be sure to find the right company no matter where you live.


Start with recommended lenders and look at their website for information on their loan program. Also feel free to email the company if you need more details to make a decision.

Cash Advance Companies

Make sure that you research cash advance companies before deciding on one.  Ask questions to make sure that you choose the best company, including its policies, for you and your financial situation.  Most cash advance companies are not out there trying to mislead you and will treat your fairly and with respect.  However, there are those companies that may not be as up-front as they should be, so be sure your research your options thoroughly.  


The companies that are trying to trick you will not try to help you if you miss a payment, and may instead hit you with a higher interest rate or even add more on to your loan in fees.  This is just one reason why you should research your choice thoroughly and be cautious in making your decision.  Ask what happens or read the fine print to find out the consequences of a missed or late payment so you will know what to expect.  Most of the fair companies will add on your missed interest charge for the month of the missing payment, but they will not be unduly unfair in raising the interest rates or adding on exorbitant fees.  


Quick Note: Is this information helpful? It is hard to find useful information about bad credit cash advance loans. So I decided to let you in on what I have learned.


Get advice from friends or family to see if they have ever received a cash advance.  They may be able to help you make a decision about which company to use or not use.  Recommendations can go a long way in making you feel more comfortable in making your decision, so ask for advice.  


This article is the result of the growing use of cash advance loans. The article was written for answering the frequently asked questions about them. As well as other issues people have with bad credit cash advance loans. I hope you find it helpful.


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