How to Choose a Cash Advance Lender
When deciding to apply for a cash advance, it’s very important to choose a reputable cash advance provider. Applicants should look for a lender that fully discloses all of the terms and fees associated with a cash advance, follows state laws, and clearly explains details about its lending practices. Here are some questions to ask before selecting a cash advance provider:
Is the lender clearly identified?
Borrowers should never sign a cash advance agreement without verifying that they’re dealing with a trustworthy cash advance provider. The lender should have a physical address as well as additional contact information including a phone number, mailing address, and email address. The lender should also have a license to do business in the borrower’s state. One of the best and easiest ways to check on a lender’s credentials is to confirm that it is a member of the Community Financial Services Association of America (CFSA).
Does the lender fully disclose information?
Before signing a cash advance agreement, the borrower should take the time to review the agreement to make sure that all rates, fees, and terms are disclosed. If the borrower has any questions, the lender should be able to provide answers. Also, checking to see if the lender is a CFSA member is a good way for the borrower to find a lender that practices full disclosure. When a cash advance provider is a CFSA member, there should be no unexpected or hidden fees.
Does the lender comply with all state regulations?
During the process of selecting a cash advance lender, it’s important to make sure the lender is licensed in the borrower’s state. This part is especially critical when it comes to online cash advance lenders that may be based in a different state than the borrower’s. Less-than-reputable lenders may claim to be the best choice without revealing that their fees and charges exceed those allowed in the borrower’s home state. Cash advance lenders that display the CFSA seal have made a commitment to abide by the laws of every state where they do business – regardless of whether that business is conducted online or in a store.
How does the lender handle and protect personal information?
Is the lender a member of the CFSA?
The CFSA seal provides prospective borrowers with a simple way to determine whether a lender upholds responsible business practices. Lenders who display the seal in their stores and on their website are CFSA members – committed to maintaining responsibility and integrity in the industry. Learn more about CFSA Best Practices.