a. FULL DISCLOSURE. A Member
will comply with the disclosure requirements of each state in which the
Member is doing business, and with federal disclosure requirements
including the Federal Truth in Lending Act. A contract between a
Member and the customer must fully outline the terms of the
transaction. Members agree to disclose the cost of the service
both as a dollar amount and as an annual percentage rate
b. RIGHT TO RESCIND. A
Member will give its customers the right to rescind a payday advance
transaction at no cost, on or before the close of business on the
following business day, or as required by law, whichever is
c. LIMITATION ON ROLLOVERS. A
Member will not allow customers to rollover a payday loan (the extension
of an outstanding advance by payment of only a fee) unless expressly
authorized by state law, but in cases where authorized, the Member will
limit rollovers to four (4) or the state limit, whichever is
d. NO CRIMINAL ACTION. A Member
will not threaten, or pursue, criminal actions against a customer as a
result of the customer’s check being returned or the customer's
defaulting on a debt.
e. EXTENDED PAYMENT
PLAN. A Member will provide customers who are unable to
repay a payday loan according to their original contract the option of
an extended payment plan in compliance with any requirement in state law
or, in the absence of such a requirement in state law, in compliance
with FiSCA's "Guidelines for Extended Payment Plans" (available at www.fisca.org), or the Guidelines for Extended Payment
Plans of another established industry association that are consistent
with the FiSCA Guidelines.
NOTICES. A Member will provide customers notice of their
option to rescind a payday loan and to an extended payment plan in a
reasonable manner, including in a written disclosure as permitted or
required by law.
g. INTERNET LENDING.
Members that offer payday loans through the Internet shall be licensed
in each state where its payday loan customers reside and shall comply
with applicable laws and regulations, including limitations on rates,
rollovers, disclosures and other requirements imposed by state law,
unless such state does not require the lender to be licensed or to
comply with such provisions.
h. USE OF AUTOMATED
CLEARING HOUSE (ACH) SYSTEM. A Member will comply with
all of the Rules of the National Automated Clearing House Association
(NACHA) when utilizing the ACH system.
MILITARY. To the extent that any Member does business
with a Military "Covered Person" as defined by federal law, Members will
comply with any federal and state laws on doing business with the
military and related "Covered