Credit unions that serve military members can be assured that QCash, the short-term, small dollar lending platform, offers compliant loans that meet military and Consumer Financial Protection Bureau (CFPB) regulatory requirements, especially for the military select employee group (SEG). So if you want to provide Military Members Payday Loans, this post is for you.
CFPB requirements state:
1. Loans may not have an interest rate of more than 36%.
2. Payment terms must be at least 45 days or more.
3. Disclosures must adhere to the Truth in Lending Act (TILA).
The ability to make loans available to military members is an option of the QCash platform that includes two types of programs — QCash and QCash Plus. Both include CFPB requirements, however, QCash Plus extends the loan amount up to $4,000 without a credit report.
With the QCash platform, each credit union has the ability to configure fees based on its market and member base, allowing military members to receive payday lending and short-term, small dollar loans.
The QCash financial platform provides an advantage for credit unions to serve the military market since not all credit unions offer these lending programs. When a credit union incorporates QCash as part of its system, military members will have access to instant funding with no credit report required and repayment terms of up to 36 months — features previously unavailable.
QCash is fully compliant with military and CFPB requirements, presenting credit unions with a program to welcome military members with access to short-term, small dollar loans.
by Heidi Tinsley, QCash Director of Client Success