{"_id":"5bd3a06b7f12ff004aede514","project":"59f79e3c584eb200345ceafc","version":{"_id":"5ba178b00a916500030c6a21","project":"59f79e3c584eb200345ceafc","__v":24,"forked_from":"59f79e3c584eb200345ceaff","createdAt":"2015-09-17T03:47:20.956Z","releaseDate":"2015-09-17T03:47:20.956Z","categories":["5ba178b00a916500030c69a2","5ba178b00a916500030c69a3","5ba178b00a916500030c69a4","5ba178b00a916500030c69a5","5ba178b00a916500030c69a6","5ba178b00a916500030c69a7","5ba178b00a916500030c69a8","5ba178b00a916500030c69a9","5ba178b00a916500030c69aa","5ba178b00a916500030c69ab","5ba178b00a916500030c69ac","5afb6888212c690003ae3d3b","5ba178b00a916500030c69ad","5ba178b00a916500030c69ae","5ba2dcbc99f53f0003b97e2c","5babd73fa0ab3e0003ead030","5bb4038be7222e000334dd97","5bb55954478c1300031a44c2","5bb665a1607307000327c81e","5bb6f90229a7fb0003a0650d","5bb7f9bc29a7fb0003a07ac1","5bba58bd7ba7710003bd901d","5bba6dac7ba7710003bd908d","5bba6e257ba7710003bd9090","5bbac87810189c0003e619ea","5bbb9d02b5862c00036266b2","5bbbadb6219c3e000376c2de","5bc417751d1b0000182bf7f6","5bc59e3b2a5b4f0044db5b97","5bc7bbce2262cc0041f6eff2","5bce6a3580a7250031199f34","5bcfac2c4082510019f2d91b","5bcfac3757bed90030e45d68","5bcfac45d305bc0049941539","5bd2a43548bb6f00289c8fad","5bd3a42a026ebe001f66259e","5bd9d5afffe003005b02f97b","5becb7ee85c6b300557662b6"],"is_deprecated":false,"is_hidden":false,"is_beta":true,"is_stable":false,"codename":"","version_clean":"3.2.0","version":"3.2"},"category":{"_id":"5ba178b00a916500030c69ae","project":"59f79e3c584eb200345ceafc","version":"5ba178b00a916500030c6a21","__v":0,"sync":{"url":"","isSync":false},"reference":false,"createdAt":"2018-09-16T22:26:26.400Z","from_sync":false,"order":15,"slug":"loans","title":"One-Time Loans"},"user":"5bbfeeea7f922a0003f04c65","__v":0,"parentDoc":null,"updates":[],"next":{"pages":[],"description":""},"createdAt":"2018-10-26T23:16:59.164Z","link_external":false,"link_url":"","sync_unique":"","hidden":false,"api":{"results":{"codes":[]},"settings":"","auth":"required","params":[],"url":""},"isReference":false,"order":8,"body":"Lending services are regulated by the Federal Trade Commission (“FTC”), through the Truth in Lending Act and subsequent regulations set forth by the Federal Reserve Board. \n\n##General Disclosures \nThe platform will adhere to the following verbiage and placement requirements, also detailed in their spec sheet. Additionally, the Platform will not reference SynapseFI or Evolve Bank & Trust in any other way without express written permission from the respective entity.\n\nThe Platform will not misrepresent their relationship to SynapseFI or Evolve Bank & Trust, nor will they claim a direct relationship with Evolve Bank & Trust. To explain the association, disclosures will include language similar to:\n\n*“The Platform partners with SynapseFI, our third-party bank software provider and agent of Evolve Bank & Trust, Member FDIC, to offer these lending services.”*\n\n##Upon applying for a loan\nIf a user is applying for a loan, they must agree to Evolve Bank & Trust’s Consumer Loan Agreement, with the following language:\n*“Lending services are provided through Evolve Bank & Trust (Evolve). By applying for a loan, you agree to Evolve’s Consumer Loan Agreement.”*\n\n“Consumer Loan Agreement” shall be a hyperlink to the Platform’s Custom Agreement, this will be provided by SynapseFI.\n\n##Truth in Lending Act Disclosures\nThe Truth in Lending Act (“TILA”) is enforced through Regulation Z, which requires that creditors provide written disclosure of important credit terms, refrain from unfair practices, and respond to borrower complaints regarding errors in billing. Truth in lending disclosures must be provided and agreed to prior to the  The required truth in lending disclosure will be included in the Consumer Loan Agreement, provided to the platform. \n\nIt is important to note that Platforms can meet all requirements of TILA, but still be at risk of UDAAPs. All relevant terms and conditions must be disclosed as they apply to specific products, even those not specifically required in TIL disclosures. Additionally, violations are possible when the advertised rates were designed to attract consumers who would not qualify for those rates despite sufficient disclosures later on. \n\nTILA requires that borrowers receive written disclosures about important terms of credit before they are legally bound to pay the loan, including:\n* Annual Percentage Rate (“APR”), the cost of credit expressed as a yearly rate in a percentage\n* Finance Charge, the total amount of interest and fees, over the life of the loan, if payments are made on time, expressed as a dollar amount\n* Amount Financed, the dollar amount of credit provided to the borrower\n* Total of Payments, the sums of all of the payments made at the end of the loan, including repayment of the amount financed and all finance charges*\n* Number of payments*\n* Monthly payments\n* Late fees\n* Penalties for prepayment\n\nRegulation Z requires:\n* Advertisements for specific credit terms must state only the terms that are actually being offered by the creditor\n* Advertisements including references to:\n* The number of payments or period of repayment.\n* The amount of any payment.\n* The amount of any finance charge\n\nMust also include, as applicable:\n* The terms of repayment, reflecting the obligations over the full term of the loan \n* The “Annual Percentage Rate”, using that term, and the fact that rate may increase, if applicable.\n* Disclosures clearly state the amount of interest incurred by the loan in terms of an annual percentage rate \n* Disclosures list the amount financed and any financing charges associated with issuing and servicing loans\n* Lenders must provide monthly billing statements to consumers that include any changes in interest rate if the loan has an adjustable rate \n* Creditors must deliver written notices to consumers about changes to lending terms within a specific time period\n* If a transaction involves more than one creditor, only one set of disclosures must be given, and the creditors shall agree among themselves which of them will be responsible for complying with Reg Z. * Additionally, if multiple consumers are involved, the consumer who is primarily liable must receive the disclosures. \n\n##Equal Credit Opportunity Act\nRegulation B enforces the Equal Credit Opportunity Act (“ECOA”) and prohibits discrimination against an applicant in any aspect of a credit transaction, as well as any statement that would discourage a person from submitting or pursuing an application, based on:\n* Applicant’s race, marital status, nationality, gender, age, religion\n* Receipt of income derived from a public assistance program\n* An applicant who exercised their rights under the Consumer Credit Protection Act, which includes fraud and/or active duty alerts\n* Institutions must make a reasonable effort to identify applicants when they obtain consumer reports that show fraud or active duty alerts, as opposed to automatic denial, on that basis.\n\nCreditors may not request or collect information about an applicant’s race, color, religion, nationality, origin, or sex. However, there are exceptions to this rule when the information is necessary to test for compliance with fair lending rules or is required by a government entity for a specific purpose, such as determining eligibility for a particular program. There are additional restrictions and corresponding exceptions regarding the collection of information:\n* Related to the current or former spouse of the applicant \n* Regarding alimony, child support, or separate maintenance income \n* Regarding residency and immigration status\n\nAdvertising and marketing should not target or focus on one specific demographic when there is a diverse market area. \n\n##Fair Debt Collection Practices Act \nProvides guidance and requirements regarding the notice of debts, disputed debts, admissions of liability, legal pleadings and notice provisions.\n(https://www.ftc.gov/enforcement/rules/rulemaking-regulatory-reform-proceedings/fair-debt-collection-practices-act-text#807) The act also:\nLimits communication in connection with debt collection based on timing and location, restricts contact:\n* At any unusual place or time or which should be known to be inconvenient to the consumer \n* If the debt collector has knowledge that the consumer is represented by an attorney with respect to such debt and they can readily ascertain the attorney’s contact information \n* Unless the attorney fails to respond within a reasonable period of time\n* At the consumer’s place of employment\n* After the consumer has provided written refusal to pay a debt\n* Prohibits harassment, oppression, and/or abuse in connection to the collection of debt, such as:\n* Threatening violence or other criminal means to inflict physical, reputational or proprietary harm\n* The use of obscene, profane, or offensive language\n* Publishing a list of consumers who allegedly refuse to pay debts\n* The advertisement for sale of a debt in an attempt to coerce payment\n* Prohibits a collector from using any false, deceptive, or misleading representations in relation the the collection of debt\n* Prohibits the use of unfair or unconscionable means to collect debt \n\n##Fair Credit Reporting Act\nThe Fair Credit Reporting Act (“FCRA”) promotes the accuracy, fairness, and privacy of information in the files of credit reporting agencies. Relevant consumer rights under this Act are as follows:\n* The right to know when information in their credit file has been used against them, resulting in adverse action \n* This disclosure of information must include contact information (name, address, phone number) of the agency who provided the information to them.\n\n##Periodic Statements\nMust comply with Reg Z if not using [our statement API](https://docs.synapsefi.com/v3.2/docs/statements-intro) and PDF documents.","excerpt":"Legal disclosures for loans","slug":"legal-disclosures","type":"basic","title":"Legal Disclosures"}

Legal Disclosures

Legal disclosures for loans

Lending services are regulated by the Federal Trade Commission (“FTC”), through the Truth in Lending Act and subsequent regulations set forth by the Federal Reserve Board. ##General Disclosures The platform will adhere to the following verbiage and placement requirements, also detailed in their spec sheet. Additionally, the Platform will not reference SynapseFI or Evolve Bank & Trust in any other way without express written permission from the respective entity. The Platform will not misrepresent their relationship to SynapseFI or Evolve Bank & Trust, nor will they claim a direct relationship with Evolve Bank & Trust. To explain the association, disclosures will include language similar to: *“The Platform partners with SynapseFI, our third-party bank software provider and agent of Evolve Bank & Trust, Member FDIC, to offer these lending services.”* ##Upon applying for a loan If a user is applying for a loan, they must agree to Evolve Bank & Trust’s Consumer Loan Agreement, with the following language: *“Lending services are provided through Evolve Bank & Trust (Evolve). By applying for a loan, you agree to Evolve’s Consumer Loan Agreement.”* “Consumer Loan Agreement” shall be a hyperlink to the Platform’s Custom Agreement, this will be provided by SynapseFI. ##Truth in Lending Act Disclosures The Truth in Lending Act (“TILA”) is enforced through Regulation Z, which requires that creditors provide written disclosure of important credit terms, refrain from unfair practices, and respond to borrower complaints regarding errors in billing. Truth in lending disclosures must be provided and agreed to prior to the The required truth in lending disclosure will be included in the Consumer Loan Agreement, provided to the platform. It is important to note that Platforms can meet all requirements of TILA, but still be at risk of UDAAPs. All relevant terms and conditions must be disclosed as they apply to specific products, even those not specifically required in TIL disclosures. Additionally, violations are possible when the advertised rates were designed to attract consumers who would not qualify for those rates despite sufficient disclosures later on. TILA requires that borrowers receive written disclosures about important terms of credit before they are legally bound to pay the loan, including: * Annual Percentage Rate (“APR”), the cost of credit expressed as a yearly rate in a percentage * Finance Charge, the total amount of interest and fees, over the life of the loan, if payments are made on time, expressed as a dollar amount * Amount Financed, the dollar amount of credit provided to the borrower * Total of Payments, the sums of all of the payments made at the end of the loan, including repayment of the amount financed and all finance charges* * Number of payments* * Monthly payments * Late fees * Penalties for prepayment Regulation Z requires: * Advertisements for specific credit terms must state only the terms that are actually being offered by the creditor * Advertisements including references to: * The number of payments or period of repayment. * The amount of any payment. * The amount of any finance charge Must also include, as applicable: * The terms of repayment, reflecting the obligations over the full term of the loan * The “Annual Percentage Rate”, using that term, and the fact that rate may increase, if applicable. * Disclosures clearly state the amount of interest incurred by the loan in terms of an annual percentage rate * Disclosures list the amount financed and any financing charges associated with issuing and servicing loans * Lenders must provide monthly billing statements to consumers that include any changes in interest rate if the loan has an adjustable rate * Creditors must deliver written notices to consumers about changes to lending terms within a specific time period * If a transaction involves more than one creditor, only one set of disclosures must be given, and the creditors shall agree among themselves which of them will be responsible for complying with Reg Z. * Additionally, if multiple consumers are involved, the consumer who is primarily liable must receive the disclosures. ##Equal Credit Opportunity Act Regulation B enforces the Equal Credit Opportunity Act (“ECOA”) and prohibits discrimination against an applicant in any aspect of a credit transaction, as well as any statement that would discourage a person from submitting or pursuing an application, based on: * Applicant’s race, marital status, nationality, gender, age, religion * Receipt of income derived from a public assistance program * An applicant who exercised their rights under the Consumer Credit Protection Act, which includes fraud and/or active duty alerts * Institutions must make a reasonable effort to identify applicants when they obtain consumer reports that show fraud or active duty alerts, as opposed to automatic denial, on that basis. Creditors may not request or collect information about an applicant’s race, color, religion, nationality, origin, or sex. However, there are exceptions to this rule when the information is necessary to test for compliance with fair lending rules or is required by a government entity for a specific purpose, such as determining eligibility for a particular program. There are additional restrictions and corresponding exceptions regarding the collection of information: * Related to the current or former spouse of the applicant * Regarding alimony, child support, or separate maintenance income * Regarding residency and immigration status Advertising and marketing should not target or focus on one specific demographic when there is a diverse market area. ##Fair Debt Collection Practices Act Provides guidance and requirements regarding the notice of debts, disputed debts, admissions of liability, legal pleadings and notice provisions. (https://www.ftc.gov/enforcement/rules/rulemaking-regulatory-reform-proceedings/fair-debt-collection-practices-act-text#807) The act also: Limits communication in connection with debt collection based on timing and location, restricts contact: * At any unusual place or time or which should be known to be inconvenient to the consumer * If the debt collector has knowledge that the consumer is represented by an attorney with respect to such debt and they can readily ascertain the attorney’s contact information * Unless the attorney fails to respond within a reasonable period of time * At the consumer’s place of employment * After the consumer has provided written refusal to pay a debt * Prohibits harassment, oppression, and/or abuse in connection to the collection of debt, such as: * Threatening violence or other criminal means to inflict physical, reputational or proprietary harm * The use of obscene, profane, or offensive language * Publishing a list of consumers who allegedly refuse to pay debts * The advertisement for sale of a debt in an attempt to coerce payment * Prohibits a collector from using any false, deceptive, or misleading representations in relation the the collection of debt * Prohibits the use of unfair or unconscionable means to collect debt ##Fair Credit Reporting Act The Fair Credit Reporting Act (“FCRA”) promotes the accuracy, fairness, and privacy of information in the files of credit reporting agencies. Relevant consumer rights under this Act are as follows: * The right to know when information in their credit file has been used against them, resulting in adverse action * This disclosure of information must include contact information (name, address, phone number) of the agency who provided the information to them. ##Periodic Statements Must comply with Reg Z if not using [our statement API](https://docs.synapsefi.com/v3.2/docs/statements-intro) and PDF documents.