Best practices
The standards every member operates by
Every member of the Lendwell Alliance agrees to these best practices. They apply to every loan a member makes, in every channel.
Code of conduct
Deal with every customer honestly, fairly, and with respect, at the counter and online.
The code of conduct is the short version. The best practices below spell out what it means in day-to-day lending, from the first advertisement a customer sees to the last payment they make.
They are written to work in both channels. Where a storefront and a website raise different questions, we say so.
For every member
Eight commitments
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Clear, complete terms
Give customers the full cost of a loan, including the finance charge, the APR, the payment schedule, and every fee, in plain language before they sign. What is said in conversation must match what is written in the agreement.
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Honest marketing
Advertise truthfully. Do not promise approvals, rates, or terms that will not be honored, and do not manufacture urgency. Hold affiliates, lead generators, and anyone else who markets on the member’s behalf to the same standard.
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Responsible lending
Lend with a reasonable expectation that the customer can repay. Observe every applicable limit on loan amounts, renewals, and refinancing, and do not steer a customer toward a product that serves them worse.
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A chance to reconsider
Give customers a fair opportunity to change their mind, under a cancellation policy that is explained at the outset and honored without argument.
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Fair servicing and collections
Treat customers who fall behind with respect. Be accurate about what is owed, work with customers who ask for help, and never use threats, harassment, or intimidation to collect.
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Privacy and data security
Collect only the information that is needed. Protect it in the store and on every system, share it only as the law and the privacy policy allow, and require vendors to do the same.
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Licensing and compliance
Hold every license required. Follow all applicable federal, state, and local law, and maintain a compliance program with a named person accountable for it.
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Help when it is needed
Give customers a clear way to ask questions and make complaints, and respond promptly. Point customers who need it toward credit counseling and financial education.
By channel
The same standard, applied where the customer is.
A storefront and a website put the same commitments to work in different ways.
At the counter
- Post rates, fees, and licenses where customers can see them.
- Train every employee who deals with customers on these standards and on the law.
- Give customers time and privacy to read their documents before signing, and a copy to take home.
- Secure paper records, cash, and personal information on the premises.
On the screen
- Identify the lender clearly on every page, with licensing and contact details easy to find.
- Present disclosures before the customer consents, in a form they can save or print.
- Obtain electronic signatures and payment authorizations as the law requires.
- Protect applications and accounts with encryption, authentication, and fraud monitoring.
Accountability
How the standards are upheld
Members affirm these best practices when they join and again each year.
When the Alliance learns of a concern about a member’s conduct, we review it and work with the member to put it right. A member that does not correct a problem may be suspended or removed, and loses the right to display the Alliance seal.
These best practices sit on top of the law. They are not a substitute for it and they are not legal advice. Where a law or regulation is stricter, the law governs.
Already lend this way?
If these standards describe how your company does business, we would like to hear from you.