How TILA keeps you from getting fooled

As the calendar turns to April, we welcome in one of the most glorious times of the year. The days are getting longer. The sun once again kisses our skin, some of which has been clothing-covered for four consecutive months. Trees and plants begin to flower. But there is a darker side. Also as the calendar turns to April, the friends and family you know and love transform into prank-loving demons.

April Fools’ Day has the ability to turn even the honest souls among us into deceptive lie-mongers whose only objective is to trick you into believing something false. And, unfortunately, there are no rules in place to help you avoid finding your car covered in Saran Wrap, or getting a pie in the face, as the result of one of these pranksters.

When it comes to the lending industry, though, there is a rule to help prevent you from being tricked. The Truth in Lending Act, commonly referred to as TILA, has a number of provisions that regulate how lenders and creditors can act and what they can say. The TILA is working for you to keep that pie out of your face, so to speak, by requiring lenders to be more trustworthy.

Here are a few of the things you may see if you’re not choosing trustworthy lenders, and some things to think about if you’re in a tough spot and need a loan fast:

1. You thought you’d be paying $X. But now you’re paying $Y.
   Well, that’s not very trustworthy, is it?
   
   

1. The TILA generally forbids lenders and creditors from being deceptive about mortgage lending practices, credit cards, auto loans, home equity loans and some other types of credit and loans. Generally, TILA requires creditors to disclose certain information — things like APR, term of loan and total cost to borrower — in a visible, noticeable way. Right up front.
   
   As a borrower, this is information which must legally be disclosed to you. If it’s not, you might be working with someone who is trying to pull a fast one on you.
   
   
   
2. They tell you, “All short-term loans are the same.”
   Nice try, prankster. Spotloans and payday loans are completely different.
   
   Spotloans are short-term installment loans, which means you pay back your loan over time. You choose how long you want to pay the loan back — anywhere from three to 10 months. As you make these payments, you pay down both the interest and principal until the loan is paid off. And you can pay your loan off early with no prepayment penalties.
   
   On the other hand, payday loans are fixed loans. When the loan term is up, usually within two weeks, you need to pay back the entire amount. If you don’t have that money available, you can rollover the loan for another two weeks (or whatever your loan period is). This racks up additional fees and gets expensive fast.
   
   
   
3. They don’t share stories from their customers.
   When a business doesn’t provide a way for happy customers to share their stories, you sometimes have to wonder if they have any happy customers.
   
   Over 275,000 people have used Spotloan, and you can find out for yourself why our customers love Spotloan's short-term loans and keep coming back by reading their reviews. You’ll find more than 1,000 Spotloan reviews on Trustpilot — like R. Potter, who calls Spotloan "responsive, friendly and always states all the facts about taking out a loan." Give us a try and experience Spotloan's top-rated customer service, offering secure and professional help.
   
   
   
4. They won’t allow you to be flexible with your payments.
   
   If you need money fast, there’s usually a reason. You may be in search of a short-term loan because of something unexpected, and you may also not have anywhere else to turn.
   
   So, what happens if things go sideways again? The team at Spotloan understands that sometimes you may need to change your payment schedule or payment amount. That’s why they have highly trained Relationship Managers to help you every step of the way. If, for instance, you think you aren’t going to be able to make a payment on time, you can contact your Relationship Manager two business days before your next payment is due and they will work with you to find a solution. One such solution maybe a pause in your payments — which Spotloan allows as long as your account is in good standing.
   
   Also, there’s a chance that you are on the opposite end of the spectrum. If you end up with the ability to pay off your loan sooner ahead of your payment schedule, Spotloan offers you the freedom to do so. You can pay off your Spotloan at any time with absolutely no prepayment penalty.
   
   

This April, don’t be fooled if you find yourself needing a short-term loan. Know what you should expect from a lender.

Additional Resources

“Paying off debt — where do you start?”

"How to start repairing your credit in 7 steps"

“Loans for people with ‘bad credit’”