Policy on Responsible Lending

BadCreditLoans.com gives customers access to a trusted network of lenders and financial service providers through a simple loan request process. In addition to that, BadCreditLoans.com helps protect borrowers from illicit lenders who might engage in unfair or unethical lending practices. BadCreditLoans.com 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 in order to make the right decision about their bad credit loans.

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 BadCreditLoans.com 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.

Important Implications to Consider

We would like to remind you that Bad Credit Loans is not a lender, and it doesn’t charge users any fees for its services. Every lender and financial service provider in the Bad Credit Loans affiliate network provides consumers with specific terms, conditions and practices prior to their acceptance of offered loans. Bad Credit Loans strongly recommends that you carefully review the terms and conditions of any loan offer that you receive. 

IMPLICATIONS OF NON-PAYMENT

When you accept the terms and conditions of a particular loan offer, you are agreeing to pay back the loan principal and finance charges in the amount of time that is specified in the documents your lenders supplies you with. Additional fees/charges by your lender may apply if you are not able to repay your loan in full or if you make a late payment. Bad Credit Loans is not able to predict the amount of the penalties that you will incur as a result of nonpayment, late payment or partial payment. Bad Credit Loans has no control over knowledge of the loan details between you and the lender with whom you are working. Please refer to the nonpayment, late payment and partial payment policies detailed in your lender’s loan documents. Bad Credit Loans makes a concerted effort to work only with reputable lenders who follow Fair Debt Collection Practices.

FINANCIAL IMPLICATIONS (INTEREST AND FINANCE CHARGES)

If you are approved for a personal loan, your lender will inform you of the exact interest rate and fees attached to your loan prior to your acceptance of said loan. As stated earlier, Bad Credit Loans is not a lender and is unable to predict the exact interest rate and fees for the loan option presented to you. You are under absolutely no obligation at all to accept the loan terms that the lender presents you with.

POTENTIAL IMPACT TO CREDIT SCORE

Although Bad Credit Loans does not make credit decisions, we may do a soft credit inquiry as part of the process. Personal Loan lenders in the Bad Credit Loans affiliate network may conduct a non-traditional credit check in addition to a conventional credit inquiry from the 3 major credit bureaus (Trans Union, Experian, and Equifax) to determine your eligibility for a personal loan. If you do not pay back your loan on time your lender may choose to report this delinquency to one or more credit bureaus, with the end result being that your credit score could be negatively affected. We wholeheartedly encourage consumers to consult a credit counseling company in the event that they are experiencing credit problems.

LOAN RENEWAL POLICIES

Loan renewal policies are largely governed by state regulations. Your lender will present you with available loan renewal options prior to your acceptance of their loan offer. Please be sure to diligently read the lender’s renewal policy prior to signing the loan documents. Short-term cash loans are meant to be a short-term financial instrument. Bad Credit Loans encourages all consumers to repay their loan in full and on time in order to avoid late payment and/or nonpayment penalties. If you think there’s a possibility you could end up being unable to pay off a personal loan that you borrow, we would recommend that you explore different loan alternatives before requesting a loan through our website.

COLLECTION PRACTICES

Again, Bad Credit Loans is not a lender, and moreover, it doesn’t engage in debt collection practices. Your lender’s collection practices will be clearly disclosed to you in the loan documents that you receive. Should you be unsure of the specific collection practices used by a particular lender, we strongly advise that you discuss this issue with the lender directly. Bad Credit Loans makes reasonable efforts to only work with reputable, established lenders who follow Fair Debt Collection Practices.