PaySound® Exceed Pugh, CFPB, NCLC Safe Loan Criteria

The criteria for “safe” small dollar loans by numerous public advocates are:  

                   1) an acceptable APR,  

                   2) repayment over a reasonable period of time, no “bullet” payments, and  

                   3) analysis of the customer’s ability to repay the loan before providing it. 

At 15% APR, the PaySound^® line of credit provide repayment over up to 20 months and the ability to redraw the line.  Further, the customer’s abi!lity repay is assessed through the statement ending balances of the checking account and checking cash flow showing sufficient funds available for repayment so the loan is offered only to those with the capability to repay.  Best of all, building on the relationship approach documented by the FDIC 2008 Small Dollar loan guidance, customer checking and other relationship factors can provide the loan without requiring a credit score.  A win for all in the new environment.