Policy on Responsible Lending
E-Loan.net gives customers access to a trusted network of lenders and financial service providers through a simple loan request process. In addition to that, E-Loan.net helps protect borrowers from illicit lenders who might engage in unfair or unethical lending practices. E-Loan.net does this by providing the information borrowers need in order to make informed decisions about their loans. Some of the most important regulations are covered in this article; read on to learn about federal and other regulations that borrowers should be familiar with.
Fair Lending Laws
Many of the laws that protect borrowers are federal regulations known as Fair Lending Laws. Here are some of the most important Fair Lending Laws mandated by the federal government, in effect throughout the U.S.:
The Dodd-Frank Wall Street Reform Act - Fair lending is defined by the Dodd-Frank Wall Street Reform Act as “fair, equitable and nondiscriminatory access to credit for consumers.” This Act authorizes the Consumer Financial Protection Bureau with the ability to enforce Fair Lending Laws. Any lender engaging in practices outside of the realm of Fair Lending Laws should be reported to the Consumer Financial Protection Bureau.
The Fair Debt Collection Practices Act - The Fair Debt Collection Practices Act tasks the Federal Trade Commission with protecting consumers from unfair debt collection practices like the following:
- Contacting consumers by phone outside of reasonable business hours (8 a.m. to 9 p.m.)
- Contacting consumers by phone with the intent to annoy or harass, or using abusive language in debt collection phone calls
- Using deceptive or misrepresentative measures to collect debts
- Threatening unfounded legal recourse
The Truth in Lending Act - Perhaps the most important of the Fair Lending Laws the lenders associated with E-Loan.net must abide by, the Truth in Lending Act mandates that all lenders must provide, in writing, all information regarding loans beforehand to the potential borrower. This means that borrowers can read over all exact fees, rates and other terms before agreeing to any loans; this measure protects borrowers from hidden rates and fees.
Other Regulations and Policies
Beyond federal laws, there are state regulations in place for lending within state borders. You should be sure to learn about loans in your particular state before undertaking any loan; all policies should be disclosed in your loan documentation beforehand. State regulations often mandate policies surrounding late payments; each lender will have its own policy, so be sure to read the loan documentation ahead of time to know the policies regarding late payments.