Responsible LendingA key component of our business practice is Responsible Lending. We are aware of and adhere to quality lending practices across federal and state levels. In doing so, we promote safe lending to our valued customers. Responsible lending legitimizes the loan industry by providing a channel of consumer protection. Created to enforce a set of responsible practices, responsible lending ensures transparency of loan terms and conditions, as well as affordability and suitability of the borrower’s needs.
Lender’s ResponsibilitiesPrior to entering into a loan contract, lenders must:
- Guarantee that the loan product and terms meet the borrower’s need.
- Make certain that the borrower will, in fact, be able to make good on the agreed-upon loan payments without suffering financial hardship in doing so.
- Not coerce the borrower in any way into a loan contract.
- Help borrowers make informed decisions.
- Not mislead or deceive the borrower with florid or vague contract language meant to obfuscate terms, or via false advertising of any sort.
- Act with high ethical standards when and if the borrower encounters unforeseen hardship or a breach of contract of any sort.
- Comply with federal consumer protection legislation written to facilitate ethical dealings between lender and borrower.
- Not falsely represent or mislead the borrower.