CMP.2.7.030 Consumer Financial Services: Products, Specific Terms

(a) Extension of Credit. Any Licensee may, subject to any limitations on lending authority or otherwise imposed by law and subject to the other provisions of this section, offer and extend credit to a Consumer and, in connection therewith, may charge and collect the interest and other charges permitted by this subchapter and may take such security as collateral in connection therewith as may be acceptable to the Licensee.

(b) Installment Loans.

(1) When a Licensee offers Installment Loans, in addition to such other disclosure requirements as are imposed pursuant to other provisions of this subchapter, the application for such Loan must contain a written disclosure, Conspicuously Displayed, that:

(A) The Loan is designed as a short-term cash flow solution and not designed as a solution for longer term financial problems;

(B) Additional fees and interest may accrue if the Loan is refinanced; and

(2) Nothing in this section prohibits a Licensee from refinancing the principal amount of an Installment Loan, subject to the limitations and requirements imposed herein.

(3) Every Licensee must post on any website a prominent statement that: "This Loan is not intended to meet long-term financial needs."

(c) Single-payment Consumer Loans. When a Licensee offers Single-payment Consumer Loans, in addition to such other limitations and requirements imposed pursuant to other provisions of this subchapter, Single-payment Consumer Loans shall be subject to the following:

(1) Repayment. A Single-payment Consumer Loan is repayable in full on the Consumer's next pay date.

(2) Loan Term. The minimum Loan term is two (2) days and the maximum Loan term is fourteen (14) days. Where a Loan is requested but cannot be issued in time to meet the minimum two-day Loan term requirement, it is held in a pending status and issued at a future date.

(3) Eligibility. In order to qualify for a Loan, customers must be at least 18 years of age, reside in the United States and have a regular source of income directly deposited to their bank account.

(4) Exclusions.

(A) Military. Military is excluded as the product does not comply with the Military Lending Act's APR requirements.

(B) Reserved.

(5) Loan Limits. Loan limits are determined based on Consumer net income and Loan history.

(d) New Merchant Technology Leasing Product. When a Licensee offers a New Merchant Technology Leasing Product, in addition to such other limitations and requirements as are imposed pursuant to other provisions of this subchapter, New Merchant Technology Leasing Products shall be subject to the following:

(1) Potential Consumers will be identified through existing channels that currently purchase non-organic and organic leads.

(2) Lease amounts will be secured by Consumer collateral consisting of phones, tablets, laptops, and other products. Collateral will not be physically collected and Customer Service Representatives (CSRs) will collect serial numbers, brand, model and potentially, photos of the product.

(3) A Licensee may elect to charge an administrative fee to the Consumer for inventory management or other costs, which fee shall not exceed the lesser of $100 or 20 percent (20%) of the ascribed value of the leased good or goods, and minimum rentals based upon the first 45 days of the Lease in the event the lessee terminates the lease. These charges to not constitute penalties. A fixed price purchase option in a Lease does not of itself create a security interest. This is particularly true if the fixed price is substantial in relation to the reasonably predictable fair market value of the goods at the time the option is to be performed. Other prices are also sufficient provided they are not nominal.

(4) Lease payments will be based on pay frequency. The Lease will be a true Lease and there will be no required principal payments by the customer. New Lease documents will not be required after each Lease payment on the Consumer's pay date and the customer may choose to pay off the Lease at any time.

(5) Consumers in default of their Lease will be required to send in the goods committed as collateral and will be sold to a third-party vendor to liquidate the item.

(6) Storage of the leased product will be housed on tribal lands.

(e) Line of Credit Product. When a Licensee offers a Line of Credit product, in addition to such other limitations and requirements as are imposed pursuant to other provisions of this subchapter, the Line of Credit product shall be subject to the following:

(1) Underwriting. The initial screening of a Line of Credit application will pass through the multi-tiered waterfall process which includes both internal "black-box" and external 3rd party scorecards for assessment. The Line of Credit Product will take this process into consideration and provide the same level of data for real-time assessment.

(2) Credit Line Draw Down. The Line of Credit product will allow a customer to request a draw down on available credit and manage the disbursement of the draw.

(3) Billing Statements. Payments will be scheduled and processed on the customers' pay-dates. The billing cycle and statement delivery will be set on a minimum fourteen (14) day cycle.