Lending Policy

BadCredit.com offers multiple resources to our loan applicants, ranging from educational articles related to payday loans all the way to the strictest protections for our customers from unscrupulous lending practices. Although BadCredit.com is not itself a lender, we make sure to go the extra mile in order to make sure that all industry standards and regulations are followed within our lender network. Lenders who are found to not be following our guidelines will no longer be endorsed by our organization.

Lending Reform

According to the Dodd-Frank Wall Street Reform Act, all lenders, both traditional and those issuing short-term loans, are required to practice according to the concept of “fair lending.” This law insists that all lenders provide “fair, equitable, and nondiscriminatory access to credit for consumers.” Any lender who fails to comply with the act will be subject to judgment by the Consumer Financial Protection Bureau, where complaints may be filed directly by the affected consumer.

Financial Transparency

All the lenders within the BadCredit.com network issue the full details of any loan arrangements they make with consumers, per the required federal mandates. This includes complete disclosure of interest rates, fees and repayment terms as well as any other relevant information, which will be provided in clear terms and in writing prior to a borrower signing any repayment obligation agreement. These guidelines are issued in accordance with the federal laws regarding lending as set forth in the Truth in Lending Act, which is enforced by the Federal Trade Commission.

Regulation at the State Level

In addition to the federal Truth in Lending Act, many states have their own extra restrictions for increased consumer protection. All of the lenders within the BadCredit.com network are bound to follow any state lending laws. These laws can affect loan availability, maximum loan approval amounts, limits on interest rates, and the potential for loan extensions, among other things.

Repayment Terms

If you find that you will be unable to abide by the repayment terms that you and your lender agreed upon when you signed their loan contract, you should contact the lender as soon as possible in order to make new arrangements. Options could include having the lender grant you a loan extension, also called a rollover, although the availability of this particular option may be affected by state regulations. Choosing a loan extension will often result in a larger repayment amount overall, due to added interest or other penalties and fees. However, the sooner you address your financial concerns with your lender, the more easily you will be able to reach a new agreement with the lender regarding repayment.

Debt Collection

In the event that you do not meet your repayment terms according to the original loan agreement, our affiliated lenders will pursue collection of the owed debt within the bounds of the Fair Debt Collection Practices Act. These guidelines ensure that debt collection is conducted in a non-harassing and non-intrusive manner. Any lender within the BadCredit.com network who does not abide by these rules will be removed from our good standing immediately, and further action will be sought through the assistance of the Federal Trade Commission and the Consumer Financial Protection Bureau.