LOS ANGELES, CA--(Marketwire - Sep 24, 2012) - American Web Loan (www.americanwebloan.com) has adopted the recently updated best practices of the Online Lenders Alliance (OLA), furthering the industry organization's standards for marketing short-term, small-dollar loans online.
"We are pleased to both acknowledge and commit to the recently updated best practices marketing and advertising guidelines as created by the Online Lenders Alliance. These guidelines assure clients and consumers that our company adheres to the highest principals of efficacy in advertising our company and its loan products," said Jamie Schumann, General Manager of American Web Loan.
The new guidelines reflect consistency with examination procedures of the Consumer Financial Protection Bureau (CFPB), which prohibits deceptive marketing practices.
The new standards for OLA's Best Practices are:
Next Day Credit. OLA members, vendors and affiliates are prohibited from advertising "one hour" or "same day" credit given the practical limitations on making loan funds available. Rather, OLA members should ensure that consumers are aware that credit is available the "next day."
Actually Available Credit. Lenders and lead generators should not publish advertisements for credit in amounts that are in excess of $1,000 unless the lender can actually make such amounts available to consumers.
Credit Checks. Advertisements should not include the phrase "No Credit Checks." While OLA members do not run credit checks through the "big three" credit bureaus, they often utilize a specialized credit bureau that serves the small-dollar industry to check a consumer's background before extending credit.
Loan Terms. Advertisements must include information regarding:
- Implications of late payment (i.e., fees, collection activities)
- Consequences of non-payment (i.e., collection activities)
- Sustained use (i.e., renewals, extensions, back-to-back loans)
- Adherence to responsible lending
- Compliance with applicable state and federal law
Internet Marketing. All advertisements must provide for a phone number and physical address for the website owner responsible for the advertisement. Additionally, the Advertising Best Practices apply to domain names as well as website content.
Restore Online Shoppers Confidence Act. When applicable, any lead generator, or other vendor working with a lender to originate loans, must fully disclose to the loan applicant a separate service is being offered to the applicant for a charge, and is not related to the cost of the loan. The lead generator or vendor must fully disclose all material terms of the service (i.e., amount of recurring payments, date by which a consumer must cancel the service to avoid payments, etc.).
Wage Garnishment. Members must not include wage assignments in their agreements and also must refrain from threatening wage garnishment absent a court order.
Formatting and Presentation. The Best Practices manual has also been modified to ensure that the topics covered in the CFPB Supervision Manual are reflected in the Best Practices.
About OLA:
The Online Lenders Alliance is a professional trade organization representing the growing industry of companies offering online consumers small, short-term loans. OLA member companies abide by a list of Best Practices and Code of Conduct to ensure that customers are fully informed, fairly treated and are using all lending products and practices responsibly.
For more information, visit www.onlinelendersalliance.org and to download the complete OLA Best Practices, visit http://www.onlinelendersalliance.org/?page=BestPractices.
About American Web Loan:
American Web Loan is a tribal lending company that is wholly owned by the Otoe-Missouria Tribe of Indians and its members, a sovereign nation located within the United States of America. AWL is dedicated to providing short-term financial solutions to Americans in need. Since its formation in 2010, American Web Loan has built a nationwide reputation for spearheading the industry's most innovative financial products backed by a singular commitment to client service excellence. The company combines an unparalleled team of experienced and dedicated financial professionals with state-of-the-art online technologies to successfully meet emergency financial needs. In addition to its sought-after portfolio of loan choices, American Web Loan offers comprehensive customer loyalty and financial education programs expressly designed to help solve money challenges in the short-term and improve clients' lives in the long-term. American Web Loan is a member of The Native American Financial Services Association (NAFSA), formed in 2012 to advocate for Native American sovereign rights and enable tribes to offer responsible online lending products.
Contact Information:
CONTACT:
SSA Public Relations
(818) 907-0500
Elliott Chang
Cara Downs