Cash America 2012 Annual Report Download - page 45

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•Setting out clearly how continuous payment authority works (if used by a lender to electronically debit a consumer’s
bank account) and a consumer’s rights to cancel this authority, so the consumer can decide if this type of repayment
is acceptable to them;
•Limiting extensions of short-term loans to three occasions;
•Dealing with cases of financial difficulty sympathetically and positively and doing what is needed to help a
consumer manage what they owe;
•Telling a consumer about free and independent debt-counseling organizations who can help them; and
•Telling a consumer about a lender’s complaints-handling procedure when they take out a loan or when requested.
Check Cashing Regulations
The Company offers check cashing services at many of its pawn lending locations and consumer loan storefront
locations. Some states require check cashing companies to meet minimum bonding or capital requirements and to
comply with record-keeping requirements. Some states require check cashers to be licensed and have adopted ceilings
on check cashing fees. Failure to observe a state’s legal requirements for check cashing could result, among other things,
in a loss of the check cashing license in that state, the imposition of fines or customer refunds, and other civil and/or
criminal penalties. In addition to state regulations applicable to check cashing companies, the Company’s check cashing
activities also must comply with applicable federal regulations. The principal federal regulations governing check
cashing operations are described in “Other Regulations Affecting Lending Operations” below.
Other Regulations Affecting Lending Operations
Under the Federal Gramm-Leach-Bliley Act and its underlying regulations as well as under various state laws
and regulations relating to privacy and data security, the Company must disclose to its customers its privacy policy and
practices, including those relating to the sharing of customers’ nonpublic personal information with third parties. This
disclosure must be made to customers when the customer relationship is established and, in some cases, at least annually
thereafter. These regulations also require the Company to ensure that its systems are designed to protect the
confidentiality of customers’ nonpublic personal information and many of these regulations dictate certain actions the
Company must take to notify consumers if their personal information is disclosed in an unauthorized manner.
The Company is also subject to the Federal Truth-in-Lending Act (and its underlying regulations, known as
Regulation Z) and the Fair Credit Reporting 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, the
Company, when acting as a lender, 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 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. In addition, the Fair Credit Reporting Act requires that the Company must
provide a loan applicant a Notice of Adverse Action when the Company denies an application for credit, which, among
other things, informs the applicant of the action taken regarding the credit application and of their right to learn the
specific reasons for the denial of credit. In addition, the Federal Equal Credit Opportunity Act prohibits discrimination
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.
The Company is also subject to the USA PATRIOT Act under which the Company must maintain an anti-
money laundering compliance program covering certain of its business activities. The program must include: (1) the
development of internal policies, procedures, and controls; (2) designation of a compliance officer; (3) an ongoing