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A question I often receive from credit unions involves regulatory concerns in operating payday loan truth in lending requirements. Credit Unions often want to know how small dollar loan Truth in Lending disclosures are updated and maintained in our Digital Small Dollar Lending Platform.   If you have this concern – then this article is for you!

First – what is payday loan truth in lending?   Lenders must provide a Truth in Lending (TIL) disclosure statement that includes information about the amount of your loan, the annual percentage rate (APR), finance charges (including application fees, late charges, prepayment penalties), a payment schedule and the total repayment amount over the lifetime of the loan.

With QCash Financial, our small dollar loan platform includes the ability to update and upload your own payday loan Truth in Lending disclosures. The Truth in Lending regulations guided much of the basis for QCash as a means of keeping the system legal and usable option for credit unions. For the sake of transparency, we make that information available to credit unions.

We offer the ability to loan to military borrowers, thus opening the door for QCash to be used for military borrowing and opening up an entirely new facet of the business we hadn’t tapped into prior. This additional resource allows for a wider range to be covered by what QCash offers. Offering small dollar lending to military borrowers lets QCash expand its business far beyond our previous limitations.

We also have e-signature compliance guidelines in place that we offer through our platform, along with automatic repayment set up when the loan is booked and funded to the member’s account. E-signature requirements provide a level of security within QCash transactions. This can further guarantee the convenience of using QCash for credit unions. Automatic repayments meet the regulatory requirements while also providing a level of convenience for credit unions. The automatic repayment system saves credit unions the trouble of organizing the repayment of small dollar loans. With the automated QCash system, they no longer have to take time to set up these repayments.

By incorporating Payday Loan Truth in Lending documentation, we make it easy as we can for credit unions to follow the legal regulations set in place. QCash allows for credit unions to incorporate small dollar lending without any worry in regards to falling in line with regulations.

by Heidi Tinsley, QCash Director of Client Success

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