INFiN’s Best Lending Practices for Lenders

INFiN, A Financial Services Alliance, is a financial organization that many financial institutions are a part of. It works to bring together finance companies who have a common goal of providing trustworthy, reputable, and safe financial services to customers everywhere.

A big part of the INFiN mission is to help establish best practices for lenders that protect consumers and promote transparency and responsible lending. Lenders who are a part of INFiN follow these best lending practices to join this effort to provide safe and helpful financial solutions to consumers. 

Let's go over INFiN's Best Practices for lenders to better understand how they help both financial institutions and consumers alike.

Compliance with Federal and State Laws

Financial companies that are a part of INFiN adhere to all federal and state laws and regulations. This includes the Dodd-Frank Wall Street Reform and Consumer Protection Act. This legislation seeks to make the US financial industry a safer place for everyone, and INFiN puts great importance and carefully adhering to all federal and state legislation such as this. 

INFiN members also follow any laws or regulations that might apply to federally registered Money Services Businesses (MSB) and any other federal consumer financial laws that might apply to a business. 

Essentially, lenders that are a part of INFiN take great care to follow any and all laws and regulations that might apply to them. 

Licensing and Registration

Another part of adhering to all federal and state laws is making sure a business is licensed and registered appropriately. Lenders that are a part of INFiN make sure to keep and maintain any necessary licenses or registrations they might need to operate legally. This includes being licensed and registered correctly in any states where they operate online as well as in store locations and anywhere they may accept customers. 

Truthful Advertising and Full Disclosures

INFiN members strive to be truthful and transparent with their customers. This includes being truthful in all their marketing and advertising materials. Truthfulness in advertising includes never advertising in any unfair, deceptive, or false manner.

This truthfulness and transparency also extends to consumer disclosures. Lenders who follow these best practices are also fully disclosing all the terms, conditions, fees, and costs of their financial products and services. This includes following the Federal Truth in Lending Act and the Electronic Fund Transfer Act (Regulation E) and any other applicable disclosure requirements in each state the lender operates in.

Resolving Customer Complaints

INFiN’s mission to protect customers means that INFiN lenders also take extra care to resolve customer complaints in a timely manner. Companies that are a part of INFiN provide a toll-free customer hotline that is clearly posted in each physical store location and on the company website.

They also provide an electronic means to submit customer complaints. When issues do arise, INFiN members believe in taking every step to ensure complaints and concerns are addressed in a timely and appropriate manner. 

Maintaining Consumer Privacy

INFiN members take extra care to be mindful of maintaining and protecting the privacy of their customers. Lenders make sure to protect the personal information of customers and follow any applicable privacy laws and regulations in the states they operate in.

Appropriate Collections Practices

Lenders that are INFiN members operate their collections processes in a professional, fair, and lawful manner. This includes adhering to the Fair Debt Collection Practices Act (FDCPA) and never using unlawful threats, intimidation, harassment, or the threat of criminal action in order to collect on past due accounts. 

Industry Monitoring

INFiN and its members both work together to hold each other accountable and help monitor the financial industry and their fellow lenders. Members are able to report any suspected Best Practices violations to INFiN to help ensure all members follow the best practices, laws, and regulations in place to protect consumers. 

Vendor Management

INFiN members also manage any outside vendors or third parties they may work with in order to make sure all business endeavors are compliant with applicable laws, regulations, and best practices.

Support Balanced Legislation

INFiN and its company members work alongside legislators and regulators to support responsible legislation and regulations in the finance industry. Responsible legislation and regulation helps protect consumers and guide lenders in providing the financial tools and services their customers need. 

Display of the INFiN Membership Seal 

All INFiN members prominently display the INFiN Membership Seal in their stores and on their website. This helps to indicate to customers which lenders are associated with INFiN, A Financial Services Alliance, and which lenders adhere to these best practices for trustworthy and responsible lenders. 

Small-Dollar Loan Best Practices

If an INFiN member company offers small-dollar loans, whether they are a single payment loan or a multi-payment loan, then they will also adhere to some additional best practices that are specific to these types of loan products. 

These additional Small-Dollar Loan Best Practices include:

• Full disclosure requirements
• Encourage consumer responsibility
• Responsible repayment of single payment loans
• Structured amortization of installment loans
• Guidelines for payment plans
• Compliance with ACH system rules
• Military service member protections
• Right to rescind disclosures
• Assessment of borrower's ability to repay

The Bottom Line

There are many guidelines, laws, and regulations in place to help lenders provide reputable and helpful financial solutions while also protecting customers. INFiN and the lenders who are members of this Financial Services Alliance utilize these best practices to help follow all the guidelines, laws, and regulations that are there to support responsible lenders and protect borrowers. So the next time you’re shopping for a loan and see the INFiN Membership Seal, you can know what it means to use a lender that follows these best practices.