Applying Business Intelligence to Regulatory Solutions
PowerCheck incorporates Veritec's
"first of its kind" payday lending regulatory solution directly into the payday advance module. Starting in Florida but rapidly expanding to many other states, Veritec is quickly becoming the industry standard for state regulated payday advance environments.
If you are in a state that requires Veritec for offering Payday Advance services to your customers, then let Answers, etc. help your business be more successful with our integration of the Veritec service directly from your PowerCheck Software!
Call Answers, etc. today for more information!
1-800-275-1418
Below are highlights of the Florida program. Contact Veritec to learn how they can assist your State to implement a custom solution for effective regulation of the payday advance industry.
Florida has established an effective regulatory environment for Payday Advance that provides a legitimate financial product for consumers while providing protection from fraud and abuse. The key components required to establish this environment are:
Self funding program – no state funds were utilized to start or maintain the program, program is funded by the industry
Required use of internet-based centralized Database for registration of all payday lending transactions
Small transaction fee paid by the industry for each transaction processed
Protects consumer rights
Consumer rights to credit counseling and grace period
Consumer right to back-out of transaction within 24 hours with no fees
Clear product guidelines for borrowing limits, fees charged, term and usage
Prevents fraud and abuse
Readily available means to report issues, answer questions and resolve disputes
Consumer and Provider ability to resolve questions, issues and disputes via a customer call center capable of promptly responding to calls with qualified personnel. The call center is empowered to resolve disputes arising between Consumers and Providers.
Ability to promptly report unlicensed or non-compliant activity
The State acts as an ombudsman for dispute resolution
Prevents the spiraling cycle of short term consumer debt
Eliminates rollovers - Consumers are only eligible for a payday lending transaction if they meet eligibility requirements (e.g. within legal limits, have not had an open payday loan in the last 24 hours, have not exceeded any imposed rollover limits, etc.)
The Database only permits allowable amounts, fees and terms to be used for a payday transaction
Required use of an internet-based centralized Database to check consumer eligibility
Provides regulatory authority and resources to monitor statewide activity
Centralized Database enables up-to-date monitoring of transaction activity and identification of suspicious activity
Field examinations utilize Database for comparison to physical records and identification of non-compliant activity
Very efficient audit process which lowers the overall cost of monitoring the program
Only licensed providers have access to the Database making unlicensed activity easier to identify and enforce
Ability for legitimate Providers to be successful
Program allows a well-managed and compliant business to be successful
10 percent annual rate of growth in provider locations
Over 20 percent annual rate of growth in payday loan transactions
Protects licensed Providers from losing business to unlicensed activity
Program creates a level playing field; provides valuable information on consumer eligibility
The database protects the industry by preventing loans to consumers that already have an outstanding payday loan. Note that volume of loans that are not collected for the Florida Industry has dropped to a level of less than 3 percent since implementation of the database. Compare this to the prior average of over 6 percent based on direct Industry feedback
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