There are a lot of loan companies on the market. Which should I choose in a situation where each of them ensures their integrity and favorable conditions it offers? Should you believe ads? Or maybe be guided by opinions on the forums? Unfortunately, by definition ads are not very objective, and forum posts are often contradictory or unclear.
Fortunately, there is a simpler method to certify the lender’s integrity – just check if he is a member of the Association of Loan Companies.
The origin of the Association of Loan Companies
To understand where Good Finance came from, it is worth familiarizing yourself with the situation on the loan market before its creation in 2013. At that time, the loan industry was undergoing rapid development, but it did not enjoy a good reputation. Non-bank loan offers could be found on each advertisement pole. On the other hand, the media constantly informed about other people to whom non-bank loans not only did not help in financial problems, but even put them in even greater debts.
In addition to institutions acting in this way, however, there were companies honest and implementing the highest standards of customer service. Unfortunately, the image of the former put a shadow on the opinion of reliable lenders.
In July 2013, the payday loans market leaders formed the Loan Companies Association. The purpose of this initiative was to change the image of non-bank loans and to promote the highest business and ethical standards in this industry. Soon more companies began joining the Association. In this way, reliable lenders have separated themselves from unethical parabanks.
Association of Loan Companies – only for the best
Today, the Association of Loan Companies has about 40 members. All member companies had to undergo a rigorous qualification process. Compliance with legal regulations and norms is not enough to be admitted to an elite organization. The condition of getting to Good Finance is meeting very high standards, which are thoroughly tested during several-stage verification.
The assessment covers, among others, business practices in the company, model contracts, the number of complaints and opinion about the company in the mass media. For example: the number of complaints in a member company may not be greater than 0.5% of all contracts concluded in the previous calendar year.
Opinions on the company published in forums are also taken into account. There may not be any allegations regarding the offer of the company aspiring to become a member of Good Finance.
No company that is in conflict with the law can become a member of the Association of Loan Companies. There may be no pending prosecution proceedings against the lender who is a member of the Good Finance. No person may be punished in the management board, supervisory board or key management of such a company.
As you can see, the Good Finance loan company must be of good repute. There is no way for lenders whose integrity is questionable to become members of this organization. What does this mean for us consumers? First of all, we have the opportunity to easily verify whether the company in which we want to take out a loan is trustworthy. Just check if she is a member of the Loan Companies Association.
Association of Loan Companies – how does it work?
Currently, Good Finance is active in several areas. One of the Association’s goals is to educate potential clients of loan companies and build awareness of the responsible use of their services. The association also represents the loan industry in public debate, also in terms of developing the best legal solutions.
Anyone interested in loans should regularly visit the Association of Loan Companies website. There you will find a lot of interesting information. First of all, the website publishes news from the loan industry and reports on financial services. Currently, Good Finance has several interesting projects under implementation.
These include the industry Register of Loan Companies, a book of good practices and prohibited practices. The association also conducts numerous educational campaigns targeted at consumers in cooperation with the media.