Western Sky Loans does not lend money to clients, so lending policy and lending regulations are not our responsibility. We put clients in contact with the loan providers, and the loan contract that is drawn up exists between the customer and the lender, and Western Sky Loans has no part in that contract.
However, we do want to ensure that all our customers are properly treated. We deal only with lenders who are reputable, and who abide by all federal and state regulations. We can outline some of the lending policies that all our lenders have promised to adhere to.
Truth in Lending Act
The Truth in Lending Act provides a great deal of protection to borrowers. This act was passed back in 1968, and has been updated regularly since, and it lays down the way in which lenders must present all charges and fees to the customer.
While the Act does not put any limit on charges for any kind of credit, it does make it clear how such charges have to be disclosed to the borrower before the contract is deemed valid.
All the lenders that we network with abide by the terms of the Truth in Lending Act.
Dodd-Frank Wall Street Reform and Consumer Protection Act
This Act came into force in 2010 and is yet another aid to borrowers. The Act was drafted to try to ensure that there will never be a re-occurrence of the financial crash of 2007/8, and many aspects of it relate to consumer credit.
Under the terms of the act, the Bureau of Consumer Financial Protection was set up to ensure financial institutions, including payday lenders, comply with federal laws. One of its briefs is to enforce fair lending.
Any borrower who can prove that he or she has been misled by a lender can seek legal redress and compensation under the terms of the existing laws. All the lenders we use adhere to the highest standards.
Fair Debt Collections Act
Despite all the safeguards, some people get loans that they are unable or unwilling to repay. It is a commonly held belief that payday loan companies are overly aggressive in trying to recover bad debts.
The truth is that all the lenders with whom we deal abide by the Fair Debt Collections Act. This prevents them from applying excessive pressure on defaulters or late payers. Every company is entitled to, and will, pursue bad debts under the terms of the law. What the Fair Debt Collections Act does is specify the limits of what they can do with regard to the debtors.
– They cannot phone debtors before 8am or after 9pm.
– They are not permitted to get money from debtors through deception.
– If recovery of a debt cannot be pursued through the courts, it is illegal for lenders or debt collectors to threaten debtors with legal action.
– Lenders or collectors are prohibited from being abusive or threatening to debtors, either in person or over the phone.
Any lender or debt collection agent who breaches any of these regulations can be reported to the Federal Trade Commission.