CFSA Introduces Extended Payment Plan
As of July 31, 2007 all CFSA members are required to offer customers who are unable to repay their payday advance on the agreed upon due date the option of entering into an Extended Payment Plan (EPP). This new Best Practice gives customers more time to repay their loans with no additional fee or interest, and helps customers avoid a cycle-of-debt by providing a cost-free safety valve.
The new CFSA Best Practice stipulates the following:
Extended Payment Plan
A member will comply with a separate code of Best Practices for an Extended Payment Plan, which provides customers who are unable to repay a loan according to their original contract, the option of repaying the loan over a longer period of time at no additional charge. The customer will have the ability to pay the balance in four equal payments coinciding with the customer’s periodic pay dates, and the member will be prohibited from beginning collection activities while the customer is in good standing under an Extended Payment Plan. A customer shall be allowed to utilize an Extended Payment Plan at least once in a 12-month period. A member will adequately disclose the availability of the EPP to its customers.
CFSA members click here to view guidelines for Extended Payment Plans »
