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Lenders educating potential customers on practice

May 23, 2012 Philip Burgess

Lenders educating potential customers on practice
After facing an unexpected challenge that results in a potentially detrimental expense, a number of consumers do not always know all of their financial options. Many are often unaware of the options available to cover a sudden cost, they have many avenues they can take, including short term lending options, such as short term loans.
 Many lenders attempt to remedy this by releasing articles aimed toward consumers who may not know the details of the lending industry. Administrators at Payday.net, for one, recently decided to expand a section of articles aimed at those facing money challenges. The professionals published the "Policy on Responsible Lending" text to teach people about various laws that govern the lending practice, as well as the rights of debt collectors. The article breaks down the clauses of the Fair Debt Collection Practices Act, the Dodd-Frank Wall Street Reform Act and the Truth in Lending Act, in particular. Faxless Short term Loan also released an article titled "Fair Lending" to customers who view the business website. Fair Lending serves to teach people about different state regulations they will have to abide by to take out a loan in different locales. General borrowing policies, as well as the three main lending statutes, are also covered in the text. Faxless Short term Loan's article also explains the qualifications a potential borrower must meet before applying, and notes these types of loans should only be used to cover emergency expenses, not as a regular backup. Jack Anderson, of Faxless Short term Loan, explained lenders like to work with consumers to ensure no wrongdoing on a patron's part is being committed. "Numerous articles detailing the benefits and requirements of a short term loan, as well as the security of the application process, help us make sure the individuals know that they are able to borrow our loans safely and with complete confidence," Payday.net representative Chuck Harrison detailed. Companies in the borrowing business may want to follow the example of Faxless Short term Loan, as its website makes it easy for those researching policies to view other resources, such as the the firm's loan application. By featuring links at various locations in the text, lenders could end up increasing business once a customer is thoroughly educated. Lenders may want to teach consumers about the ins and outs of the industry in order to assure compliance.Industry leaders can also possibly safeguard their businesses, as educating individuals may lead to less frequent defaults on sums, which could result in companies losing money.