Membership requires that lenders adhere to a set of customer friendly standards and best practices. For example, the CFSA has published a Payday Customer Bill of Rights which is available in the Daily Dollar Library for you to download and print.
Extended Payday Loan Payment PlansCFSA members have an option available to consumers who request more time to pay back their loan. The CFSA's Best Practices, state that a customer who cannot pay back a loan when it is due has the option of entering into an Extended Payment Plan EPP. This option gives a borrower additional weeks to repay the loan. A customer is allowed to utilize an EPP at least once in a 12-month period.
3 Steps To An Extended Payday Loan Payment PlanStep 1: Return to the office where your loan was originated or call your lender if you did your loan through the Internet or phone and ASK for the EPP by close of business on the last business day before the loan due date.
Step 2: To receive the EPP, you must sign an amendment to the loan agreement reflecting the new payment schedule.
Step 3: Under an EPP, you will pay the transaction balance in four equal payments coinciding with periodic pay dates.
No Fees For Extended Payday Loan Payment PlanThere is no charge to enter into an EPP. However, if you default on an EPP, a lender may charge an EPP fee and accelerate payment on the balance remaining, as authorized by law.
State Laws VaryA CFSA member will provide an EPP if you are is unable to repay a loan when due. Some states have adopted laws allowing for an EPP, and in those states, the state-mandated EPP is the plan that will be offered to a customer, not the CFSA's EPP.
If you fail to live up to your EPP agreement, a lender may take action to collect the outstanding balance. In the case of default, you may also be subject to additional fees and charges as provided for in the loan agreement or by law.
