Online Payday Lending And The CAN-SPAM Act
The Internet-based sector of the payday loan industry began in the 1990’s, when the CAN-SPAM Act didn’t yet exist.. That’s because the Act didn’t exist back then. But as the popularity of the payday lending industry has grown, along with the popularity of all sorts of online businesses, it was time for the false claims and the intrusive nature of e-mail marketing to come under control once and for all. When the CAN-SPAM Act of 2003 became reality, the online payday lending industry took notice.
The goal of CAN-SPAM, short for Controlling the Assault of Non-Solicited Pornography and Marketing Act was to set standards for distinguishing between e-mails that are legitimate and those which are SPAM. The sending of SPAM is against the law. Since the Act applies to all businesses that use email in their operations, most payday lenders found themselves needing to understand this new law that outlined severe consequences including penalties and jail.
Online payday lending and the CAN-SPAM Act
The CAN-SPAM Act delineates guidelines for using email addresses for the purpose of sending and receiving electronically transmitted marketing materials. It is an extensive act, and here are some of the basics.
First of all, the Act prohibits the sending of unsolicited email. New online payday lending websites are springing up every day and each is competing hard to steer the attention of the masses in its own direction. Mass emailing messages with flashy advertisements and discounted offers is a popular way to steer new customers to this lucrative business.
One way to distinguish a good online payday lending business from the “bad” ones is by never agreeing to do business with a payday loan company that sends you unsolicited commercial email. Any legitimate company would never purposely violate the CAN-SPAM Act so you’d have to wonder about the legitimacy of a payday loan company that would intentionally do so.
The CAN-SPAM Act also states that the information in e-mail headers and subject lines must not to be falsified. If you find yourself the willing recipient of advertising from an online payday lending company and you are tempted to respond to the e-mail, go ahead and do so. If the information to which you responded turns out to be incorrect or misleading, that company could be in violation of the CAN-SPAM Act.
Choose online payday lending businesses that adhere to the CAN-SPAM Act
Another section of the CAN-SPAM Act states that any email message you receive must include an opt-out link. The link is a way of notifying the sender that you no longer want to receive email from that sender. If the email lacks such opt-out opportunity, the online payday lending business is violating the CAN-SPAM Act. Again, that’s probably one online payday lender you should stay away from.
Even though most online payday lending businesses are legitimate, some aren’t. The CAN-SPAM Act helps weed out the bad online payday lending companies so you don’t have to.