As a bad credit loans matching site, we are dedicated to helping you find the right lender for your credit needs. We carefully screen our lenders before agreeing to promote their services, and we encourage you to also review their website for information on lending practices. Choose responsible lenders who follow these guidelines.
Clearly Stated Information Consistent with Truth in Lending
The Fair Lending Laws and Truth in Lending Act set forth clear guidelines for all lenders. Under these laws, borrowers are clearly informed of their interest rates, fees, provisions and exact charges before agreeing to accept a loan. Information is provided in writing or through electronic communications, and borrowers will know exactly what the cost of accepting the loan will be.
Fair Lending Decisions
Loans are based on clearly stated criteria so all borrowers will have equal access to funding. Outlined in the Dodd-Frank Wall Street Reform Act, lenders base their decisions on quantifiable information such as length of employment and current income levels. Fair lending regulations are observed, and borrowers have the opportunity to file a complaint if they feel they were unjustly refused a bad credit loan.
Collection of Past Due Accounts
As with any lender, bad credit lenders must follow the requirements outlines in the Fair Debt Collection Practices Act. They do have legal channels through which debts will be collected, but they must follow certain guidelines.
- Legal threats not allowed without proper authority obtained through the courts.
- Information may not be falsified in an attempt to collect a debt.
- Harassment of borrowers or their family members is not allowed, and this includes the use of foul language, lies or threats.
- Lenders may only contact borrowers between the hours of 8:00 a.m. and 9:00 p.m. in their local time zones.
Right to Rescind
You will be provided with full disclosure of loan costs before you asked to sign the contract and accept the funds. You have the right to rescind the loan at no extra charge to you. Depending on state laws, you may even have a certain number of days after the loan is received to return the full loan amount without incurring any fees, interest charges or other expenses.
In accordance with state laws, lenders may offer borrowers loan extensions if necessary. Loan extensions must be requested before the loan is due, and there may be additional fees associated with the service. Another contract will be required, and this contract will also be bound by the same laws and fair lending practices regarding contracts, transparency and full disclosure.
Our lenders appreciate the importance of protecting your privacy. They protect your information through encrypted systems and fully trained staff. Look for lenders who have a commitment to use your information only for the purposes of providing you with loans and will not sell, trade or give away your personal information.
Responsible lending and borrowing go hand in hand. We encourage borrowers to be responsible about accepting bad credit loans. The loans should only be accepted if they will ultimately make your financial situation better. Here are some guidelines to consider.
- Ability to Repay – If you will not have the funds to repay the loan, do not accept the money. Doing so will make your financial position more precarious.
- Only borrow what you need – Borrowing $100 to make sure the rent is on time is wise and will help you avoid late fees, but you should not borrow extra funds for additional purchases.
- You should not be taking out bad credit loans on a regular basis – If you are, then you should review your financial decisions to see where you can make changes and improve your situation.