Updated Feb 5, 2023


Our disclosure on the consumer protection laws that protect you as a borrower.

Responsible lending practices

Sound Financial is committed to working with responsible lenders that provide borrowers with fair and transparent loan terms. Our marketplace lenders are licensed credit organizations that comply with local, state, and federal laws. As so, all our lenders are required to evaluate each loan application on an individual basis and offer loans to borrowers that demonstrate the ability to repay.

The Truth in Lending Act

The Truth in Lending Act (TILA) is a federal law that requires lenders to provide clear and accurate information to borrowers about the cost and terms of credit. This includes disclosing to borrowers their annual percentage rate (APR), the repayment terms, and all fees associated with their loan before the borrower signs any contracts or agreements. The purpose of TILA is to protect consumers by ensuring that they have all the information they need to make an informed, responsible financial decision.

Equal Credit Opportunity Act

The Equal Credit Opportunity Act (ECOA) is a federal law that prohibits lenders from discriminating against borrowers on the basis of race, color, religion, national origin, sex, marital status, age, or other protected classes. The ECOA promotes fair and equal access to credit for all consumers by requiring lenders to make credit equally available to all creditworthy customers, regardless of their protected characteristics.

Fair Credit Reporting Act

The Fair Credit Reporting Act (FCRA) is a federal law that regulates the collection, dissemination, and use of consumer credit information. The FCRA give consumers the right to access and/or dispute their credit report and regulates credit reporting agencies. The FCRA is designed to protect consumers from errors and misuse of their credit information, promoting accuracy and fairness in the credit reporting system.

Fair Debt Collection Practices Act

The Fair Debt Collection Practices Act (FDCPA) is a federal law that regulates the practices of debt collectors when collecting debts from consumers. The FDCPA prohibits debt collectors from engaging in abusive, harassing, or deceptive practices and requires debt collectors to treat consumers fairly and with respect. The law also gives consumers the right to dispute a debt and requires debt collectors to cease communication if requested by the consumer.