Short-term Loan Industry Best Practices
A member will comply with the disclosure requirements of the state in which the payday advance office is located and with Federal disclosure requirements including the Federal Truth in Lending Act. A contract between a member and the customer must fully outline the terms of the payday advance transaction. Members agree to disclose the cost of the service fee both as a dollar amount and as an annual percentage rate (“APR”). A member, in compliance with NFSA guidelines where they do not conflict with applicable federal, state or local requirements, will further ensure full disclosure by making rates clearly visible to customers before they enter into the transaction process.
A member will comply with all applicable laws. A member will not charge a fee or rate for a payday advance that is not authorized by state or federal law.
A member will not advertise the payday advance service in any false, misleading, or deceptive manner, and will promote only the responsible use of the payday advance service.
Encourage Consumer Responsibility
A member will implement procedures to inform consumers of the intended use of the payday advance service. These procedures will include the placement of a “Customer Notice” on all marketing materials, including all television, print, radio and on-line advertising, direct mail and in-store promotional materials.
A member will participate in self-policing of the industry. A member will be expected to report violations of these Best Practices to NEBFSA.com, which will investigate the matter and take appropriate action. Each member company agrees to maintain and post its own toll-free consumer hotline number in each of its outlets.
Support and Abide by Current Laws
A member will work with state legislators and regulators to abide by regulations and laws currently in place that govern the Delayed Deposit/Payday Advance industry in the State of Nebraska.
Right to Rescind
A member will give its customers the right to rescind, at no cost, a payday advance transaction on or before the close of the following business day.
Appropriate Collection Practices
A member must collect past due accounts in a professional, fair and lawful manner. A member will not use unlawful threats, intimidation or harassment to collect accounts. NFSA believes that the collection limitations contained in the Fair Debt Collection Practices Act (FDCPA) should guide a member’s practice in this area.