Responsible Lending Policy

Our Policy on Responsible Lending

LoanUp.com is entirely dedicated to keeping our borrowers safe from illegal lending practices which are often performed by disreputable cash loan lenders. We strive to provide borrowers with adequate information to help ensure they are able to make safe and responsible decisions regarding their credit.

Truth in Lending Act

The rules and practices we follow are entirely in line with the guidelines provided by the Fair Lending Laws, specifically including the Truth in Lending Act. All borrowers will be provided with the exact charges, fees, interest rates, rollover provisions and all other relevant information concerning their loan in writing prior to acceptance of bad credit loan. All rules and regulations concerning your loan can be easily checked against the laws in your state by referring to the Consumer Resource Center.

Fair Lending

The Dodd-Frank Wall Street Reform Act states that all lenders, including cash loan financiers, should always practice “fair lending.” This means that lenders must provide consumers with reasonable and equal access to bad credit loan. The Reform Act goes on to require that lenders strictly adhere to the fair lending regulations and participate with the Consumer Finance Protection Bureau (CFPB). All borrowers who use LoanUp.com are strongly encouraged to file a complaint through the CFPB if there are any problems regarding their loan.

Fair Debt Collection Practices

In compliance with the Fair Trade Commission, LoanUp.com complies with all requirements defined in the Fair Debt Collection Practices Act (FDCPA) for all borrowers. LoanUp.com is not the financial lender, but provides a connection between our borrowers and a network of approved lenders. All lenders in our network are required to follow the following guidelines when communicating with our borrowers:

  • They may not communicate with borrowers by telephone before 8AM or after 9PM
  • They may not harass, use offensive language against, or otherwise upset the borrowers
  • They may not attempt to deceive borrowers using any falsehoods while attempting to collect a debt
  • They may not make legal threats toward borrowers without the legal authority to do so

Any lender that is found to have violated any of these requirements or any other FDCPA statute will be removed from the LoanUp.com network of lenders. LoanUp.com will also report them to the Federal Trade Commission.

Reporting Scams

LoanUp.com is dedicated to helping all consumers report any illegal or unethical acts made by any cash loan lender who attempts to take advantage of consumers. Consumers are encouraged to communicate with each other through online forums such as “SCAM REPORT” to help ensure any illegal activities are reported to the appropriate agencies, like the Better Business Bureau.

State Guidelines

LoanUp.com and all lenders which operate in our network adhere to all state and local regulations and laws concerning consumer lending. We require strict compliance from our network of lenders in all areas including, but not limited to: interest rates, cool off stages between credits, presentment boundaries and rollover restrictions and charges.

Our Pledge to Inform Consumers

LoanUp.com provides access to an abundant amount of information free of charge. This information was gathered and compiled by our team of financial experts. The Consumer Resources section of our website offers an extensive number of facts and definitions concerning lending laws and regulations in all 50 states. You may read your specific state”s laws and available agencies in place to help protect consumers in addition to finding options for bad credit loan in your area.

Implications of Late Payment

If your short term loan is not paid on time, there are several courses of action that can be taken by our lenders. You can find out your particular lender's practices by visiting its website. You should read this information carefully before you electronically sign any loan agreement.

Implications of Non-Payment

When loans go unpaid, this can influence you in several different ways. You should always be sure to negotiate payment arrangements with your lender if you are unable to repay your loan as stated in the original agreement in order to avoid or reduce the following:

Financial Implications - While the fees for short term loans of up to $500 already amount to 15-40% for $100 borrowed, unpaid loans can have even higher charges. Also, the interest charged on loans of more than $500 can be higher. Additional charges for non-sufficient funds can be $20 or more and loans that are more than 15 days past due can be assessed additional charges of up to 10%.

Collections Practices - Our lenders reserve the right to contact you via telephone, text message and email in an attempt to collect the money they are owed. Generally, they will not sell your debt to collection agencies or sue you for the unpaid balance; they will instead offer debt settlement options. All lenders must adhere to the guidelines of the FDCPA, or Fair Debt Collection Practices Act, that was put into effect by the FTC. Additional information can be found at http://www.ftc.gov/os/statutes/fdcpa/fdcpact.shtm or through the lender directly.

Impact on Credit Score - Failure to repay short term loans can have a negative impact on your credit rating if your lender reports to any of the major consumer credit bureaus. This will remain reflected in your credit history until the amount of the loan is repaid in full. This may also hinder your ability to take out short term loans in the future.

Renewal Policy - Some lenders will require you to agree to automatic loan renewals if you cannot pay your loan on the initially scheduled date. This is in addition to other options you may have, including paying your loan in full or making arrangements to pay down the principle balance over time. Please review your documentation carefully for automatic loan renewal information. You should also understand that additional interest and finance fees will be charged if your loan is automatically renewed.

Disclosure of Fees Including the APR

The Annual Percentage Rate, or APR, associated with short term loans is usually between 260% and 1825%. Though this seems high, it is actually quite competitive. These percentages depict what you would pay over the course of an entire year. Since these loans are made to be paid back quickly, they are highly competitive and less expensive than bounced checks and overdraft fees.

APR Comparison Table

14 Days
How does the APR for a single payment small dollar loan compare to other options? Compare your options for the cost of $100 extension of credit for
Product Type (single repayment) Charge APR
NSF + Bounced Check $45.00 1,173.21%
Overdraft Fee $30.00 782.14%
Late Fee $20.00 521.43%
Small Dollar Loan $10.00 260.71%
2 Days
How does the APR of a small dollar loan compare to the consequences of being unable to obtain a small dollar loan? Consider the cost of a $100 extension of credit for
Product Type (single repayment) Charge APR
NSF + Bounced Check $45.00 8,212.50%
Overdraft Fee $30.00 5,475.00%
Late Fee $20.00 3,650.00%

APR Calculations

$100.00 Amount Financed, $120.00 Repaid 2 days after the borrowing

Interest earned on last day but not the first, so 2 days earning: Per Diem uncompounded Interest = 3,650.00% per 365 day year = APR

$100.00 Amount Financed, $130.00 Repaid 2 days after the borrowing

Interest earned on last day but not the first, so 2 days earning: Per Diem uncompounded Interest = 5,475.00% per 365 day year = APR

$100.00 Amount Financed, $145.00 Repaid 2 days after the borrowing

Interest earned on last day but not the first, so 2 days earning: Per Diem uncompounded Interest = 8,212.50% per 365 day year = APR

$100.00 Amount Financed, $110.00 Repaid 7 days after the borrowing

Interest earned on last day but not the first, so 7 days earning: Per Diem uncompounded Interest = 521.43% per 365 day year = APR

$100.00 Amount Financed, $110.00 Repaid 14 days after the borrowing

Interest earned on last day but not the first, so 14 days earning: Per Diem uncompounded Interest = 260.71% per 365 day year = APR

$100.00 Amount Financed, $120.00 Repaid 7 days after the borrowing

Interest earned on last day but not the first, so 7 days earning: Per Diem uncompounded Interest = 1,042.86% per 365 day year = APR

$100.00 Amount Financed, $120.00 Repaid 14 days after the borrowing

Interest earned on last day but not the first, so 14 days earning: Per Diem uncompounded Interest = 521.43% per 365 day year = APR

$100.00 Amount Financed, $130.00 Repaid 7 days after the borrowing

Interest earned on last day but not the first, so 7 days earning: Per Diem uncompounded Interest = 1,564.29% per 365 day year = APR

$100.00 Amount Financed, $130.00 Repaid 14 days after the borrowing

Interest earned on last day but not the first, so 14 days earning: Per Diem uncompounded Interest = 782.14% per 365 day year = APR

$100.00 Amount Financed, $135.00 Repaid 7 days after the borrowing

Interest earned on last day but not the first, so 7 days earning: Per Diem uncompounded Interest = 1,825.00% per 365 day year = APR

$100.00 Amount Financed, $135.00 Repaid 14 days after the borrowing

Interest earned on last day but not the first, so 14 days earning: Per Diem uncompounded Interest = 912.50% per 365 day year = APR

$100.00 Amount Financed, $145.00 Repaid 14 days after the borrowing

Interest earned on last day but not the first, so 14 days earning: Per Diem uncompounded Interest = 1,173.21% per 365 day year = APR