Seven Tenets of Responsible Lending
At Progress Financial we believe in taking a responsible approach to lending. Our goal is not to just provide our customers with loans, but to provide them with upward mobility and opportunity, something they can only achieve if they are able to pay back their loans and maintain good credit histories. To achieve this, we abide by our seven tenets of responsible lending:
1. Lend Only to Customers Who Can Afford the Payments
- We lend only to customers who can afford to pay back their loans. Customers with significant debt will not be approved for a loan, even if they have a good FICO score.
- Our customers may only have one loan at a time and must repay their loan in full before taking out an additional loan.
2. Explain Costs in Easy-to-Understand Terms
- Unlike credit card companies, we market the full cost of the loan, including fees and interest, so customers know what they're signing up for.
3. Lend at Fair Rates
- The average APR for our loans is at or below the 36% APR guideline set by the Federal Reserve and consumer advocates for small-dollar lending to underserved communities.
4. Use Language and Disclosures that the Customer Understands
- All loan documents are in Spanish and all sales personnel speak native Spanish.
- We provide customers with a full payment schedule that shows the dates and amounts of all payments, including the amounts applied to interest and principal until the loan balance reaches $0.
5. Set Predictable Payments for Easy Budgeting
- We set fixed payments for customers to allow for easy budgeting.
- We schedule the loan payment to match the customer's payday to encourage sound financial management.
6. Provide Credit Education at Every Opportunity
- We provide in-person, one-on-one credit education to every customer.
7. Be a Bridge to Other Mainstream Products
- We are laying the foundation to offer additional banking and investment products to help customers "move up the ladder" and achieve their dreams.