The Facts About Cash Advance Services
Welcome to Hometown Cash Advance. Thank you for choosing us to help you get control over your finances. As a consumer, you need straightforward facts to make an informed decision about using a cash advance or payday advance service. Take a moment to review the questions frequently asked by new payday advance customers and their answers. If you have additional questions, just ask your Hometown Cash Advance Center Manager.
Do most people use a cash advance service for the same reason I do?
Probably so. Surveys show that while Americans do a pretty good job of managing household budgets, most of us need occasional help. An increasing number of consumers choose a cash advance to cover unexpected expenses or to bridge a short-term cash crunch between paydays, without incurring revolving debt. A cash advance is a short-term financial management tool that can provide a sensible alternative to costly bounced checks, late payment charges and tarnished credit ratings.
How often do most people use this service?
Since a cash advance is a short-term solution to an immediate need, it is not intended for repeated use in carrying an individual from payday to payday. When an immediate need arises, we're here to help. But a payday advance is not a long-term solution for ongoing budget management.
Is my transaction confidential?
We respect our customers' desire for privacy in managing their personal financial matters. The cash advance transaction is a confidential one, and we will treat your personal information accordingly.
How does Hometown Cash Advance determine the amount of my advance?
State law generally regulates the maximum advance amount available. Within the allowed range, you qualify for a particular advance amount based on your current income. Sometimes you may not be able to get as much as you'd like; But Hometown Cash Advance wants to help you get control over your finances. We wouldn't really be helping if you received more than you have the ability to repay.
How are fees established?
The fee is competitive and in compliance with applicable state or federal law. It is our goal to offer you the best service at the most competitive fee possible.
Will Hometown Cash Advance check my credit rating before I can receive a cash advance?
Hometown Cash Advance does not obtain a complete credit report. Unlike many other financial institutions, we do not require that you have good credit or, for that matter, any credit history at all. We do, however, subscribe to a risk assessment service. It tells us if customers are current in their payments to other businesses like ours and whether our customers have cash advances outstanding with other companies that subscribe to the same service.
Getting a cash advance is such a simple and easy process, why is there so much information in the Customer Agreement?
The Agreement you read and sign prior to receiving a cash advance is a contract between you and Hometown Cash Advance. The contract complies with all applicable state or federal disclosure requirements. It fully outlines the terms of the cash advance transaction, including the cost of the service fee both as a dollar amount and as an annual percentage rate (APR). Although a cash advance is a short-term financial solution and is not intended as a long-term source of credit, we provide you with the APR in the interest of full disclosure. Hometown Cash Advance wants to provide you with all the information you need to make an informed financial decision.
Can I renew, or roll over, my advance by just paying the fee again on my due date?
Some state laws allow rollovers, while most do not. Even in states that permit rollovers, CFSA member companies limit rollovers to four or the state limit, whichever is less. (The limiting of rollovers is a consumer protection designed to ensure responsible, short-term use of the service. Consider, for example, the cost of a two-week payday advance that is renewed or rolled over. Assume a $100 advance has a $15 fee and the advance is made in a state that allows unlimited rollovers. In this case, the cost of the $100 advance would be $15 plus $15 for each subsequent rollover. Since CFSA members will not roll over an advance more than four times, the maximum cost in this example would be $75 for the $100 advance. It is important that you fully evaluate the cost versus the benefit of rolling over a payday advance.)
What happens if I don't have the funds necessary to repay Hometown Cash Advance on my due date?
Just like you, we hope this doesn't happen. But if it does, Hometown Cash Advance is committed to collecting past due accounts in a professional, fair and lawful manner. If we deposit your check and it is returned by your bank due to insufficient funds, you may be charged a returned check charge if permitted by your states applicable law. You will be responsible for payment in full of your account, including the returned check charge. We will contact you to collect the amount due. If necessary and appropriate, your account may be turned over to a collection agency.
If my account becomes past due, will I face criminal prosecution?
No. Hometown Cash Advance does not pursue criminal actions against a customer as a result of the customer's check being returned unpaid. If it becomes necessary and is appropriate, however, we may seek civil remedies to collect past due accounts.
