Cash America 2015 Annual Report Download - page 15

In states or jurisdictions where the Company offers its CSO programs, the Company complies with that
jurisdiction’s Credit Services Organization Act, Credit Access Business law or a similar statute. These laws
generally define the services that the Company can provide to consumers and require the Company to provide a
contract to the customer outlining the Company’s services and the cost of those services to the customer. In
addition, these laws may require additional disclosures to consumers and may require the Company to be registered
with the jurisdiction and/or be bonded.
Over the last few years, legislation that prohibits or severely restricts the Company’s consumer loan
products and services or the profitability of the loan products and services has been introduced or adopted in a
number of states. The Company has de-emphasized its consumer loan business over the last few years. See “Item 1
—Overview—General—Locations” for additional information regarding the reduction in the Company’s short-term
consumer lending operations.
U.S. Federal Regulation
In addition to the state and local regulations discussed above, the Company’s business is subject to U.S.
federal regulations as described below.
Lending Laws. The company’s business is subject to the federal Truth in Lending Act and its underlying
regulations, known as Regulation Z, the Fair Credit Reporting Act and the Equal Credit Opportunity Act. These
laws require the Company to provide certain disclosures to prospective borrowers and protect against unfair credit
practices. The principal disclosures required under the Truth in Lending Act are intended to promote the informed
use of consumer credit. Under the Truth in Lending Act, when acting as a lender, the Company is required to
disclose certain material terms related to a credit transaction, including, but not limited to, the annual percentage
rate, finance charge, amount financed, total of payments, the number and amount of payments and payment due
dates to repay the indebtedness. The Fair Credit Reporting Act regulates the collection, dissemination and use of
consumer information, including consumer credit information. The federal Equal Credit Opportunity Act prohibits
the Company from discriminating against any credit applicant on the basis of any protected category, such as race,
color, religion, national origin, sex, marital status or age, and requires the Company to notify credit applicants of
any action taken on the individual’s credit application.
Consumer Reports and Information. The use of consumer reports and other personal data used in credit
underwriting is governed by the Fair Credit Reporting Act and similar state laws governing the use of consumer
credit information. The Fair Credit Reporting Act establishes requirements that apply to the use of “consumer
reports” and similar data, including certain notifications to consumers where their loan application has been denied
because of information contained in their consumer report. The Fair Credit Reporting Act requires the Company to
promptly update any credit information reported to a credit reporting agency about a consumer and to allow a
process by which consumers may inquire about credit information furnished by the Company to a consumer
reporting agency.
Information-Sharing Laws. The Company is also subject to the federal Fair and Accurate Credit
Transactions Act, which limits the sharing of information with affiliates for marketing purposes and requires the
Company to adopt written guidance and procedures for detecting, preventing and responding appropriately to
mitigate identity theft and to adopt various policies and procedures and provide training and materials that address
the importance of protecting non-public personal information and aid the Company in detecting and responding to
suspicious activity, including suspicious activity that may suggest a possible identity theft red flag, as appropriate.
Marketing Laws. The Company’s advertising and marketing activities are subject to several federal laws
and regulations including the Federal Trade Commission Act, which prohibits unfair or deceptive acts or practices
and false or misleading advertisements in all aspects of the Company’s business. In furtherance of consumer
protection, the Federal Trade Commission provides guidance and enforces federal laws concerning truthful
advertising and marketing practices; fair financial practices in lending, loan servicing and debt collection; and
protection of sensitive consumer information. As a financial services company, any advertisements related to the
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