Payday Loan Association Review

Payday Loan Association ReviewsIf you are wondering if there is a payday loan association that regulates best practices throughout the industry, there is something like it, and it’s worth knowing what it does and what it doesn’t do from a consumer standpoint.

It’s called CFSA and stands for Community Financial Services Association of America, a big name but a simple premise. It’s pretty common knowledge that payday loans are viewed as a necessary evil, and their job is to make sure that the companies doing business in this arena are abiding by the laws and regulations in the state that they are in.

If you were thinking that it provides a third party to voice complaints, it does, you are able to call them and let them know that a payday loan company has not lived up to their end of their bargain, but they will not act as legal representation. But member companies really want to keep themselves in good standing, so they’ll go out of their way to limit the number of complaints.

Payday Loan Association Review: CSFA

It’s important to look for payday lenders that are members of CFSA because it means that there is an extra governing body watching over things and making sure that they are in line with the law. Of course each state will also audit the lenders in that state and make sure that everything is in order and that they are legit.

Full Disclosure
One of the things that they make sure their member companies do is to make sure that you know everything that you are getting yourself into, and there has to be transparency, both in the loan agreement, and in the terms you’re signing. Everything needs to be clear and presented in a way that leaves no room for ambiguity.

Truthful Advertising
This is one thing that trips up a lot of would-be members because it’s very easy to over-promise what appears in your advertising. Competition is fierce and since the product is the same between all lenders, it is easy for a company to say that they can do more than others can do. Basically it’s all the same, you are paying a high fee to take out a small amount of money. So the lenders will try to frame it as a good idea, but member companies will make sure that they don’t flat out lie in their messages.

Prevention of Rollovers
Any member company of CFSA is not allowed to roll over a loan, which means you won’t be able to come back in on your due date and just pay the fees. You’ll be required to pay off the entire thing before you can re-loan again. You will be able to re-loan as soon as you pay it off, which is essentially like rolling the loan over, it’s just a matter of semantics really. It’s still the same money, and if you pay it back in cash they’ll likely hand you back the same money you handed them to pay it off.

If they’re a member of CFSA they will also have to give you the right to rescind your loan. Sometimes in the heat of the moment you might go get a payday loan and then realize you didn’t make the right choice. Even if this happens to you once you get home you don’t have to worry. You have until the next business day to bring the money back and it all gets reversed like it never happened. You don’t have to pay any extra fees.

The benefits to going with a payday lender that is part of this payday loan association are plenty. We recommend going with a lender that is part of CFSA because you will have the added security of knowing that the lender is abiding by the Best Practices created by the association. It’s interesting to think that there are lenders out there that don’t make it in, because these practices are ones that every financial business should stick to. Of course it is possible that you can get a good experience from a lender that isn’t part of it, but when there are so many to choose from it only makes sense.

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