There are many online lenders on the net who would give attractive short term loans to the people. These are also termed as “payday loans” and these will help in meeting up the short term needs of the people in need. Sometimes, people need short term finances between their paydays and these online lenders are a great help to them. There is an Online lenders alliance , which works on behalf of these online lenders
Online Lenders Alliance
This alliance has been formed because there have been a number of complaints regarding these online lenders and people believe that they do not act on good faith. So, to protect the people from being exploited, the industry leaders formed the Online lenders alliance.
Functions of Online Lenders Alliance:
- As a first step, they try to eliminate the bad lenders from the stream and standardized the principles for loans.
- And, the alliance makes the member companies agree to the best practices and also a code of conduct so that the consumers can be well informed and treated well. When the customer knows that the online lenders are part of the alliance, then the consumers can also be rest assured that they would not be exploited.
- They also try to remove the myths and clear up all misconceptions from the minds of people regarding the online lenders. They educate people, regulators and legislators about the need and demand for these short term loans.
- They have the authority for speaking on behalf of the whole online lending industry. Their staff includes experts from trade associations. And, they take actions collectively so that they comply with tax, antitrust and lobbying laws.
Online Lenders Alliance gives the latest information on the regulatory and legislative issues to the members in its alliance. And, they educate the public with credit counseling.