Cash Connection’s strategy and business model are beneficial and ethical to the customers and society. The pay lending and advance checking for customers in Cash Connection had to be followed under strict criteria. One of the company’s requirements was that the customers had to be employed or had a source of income. The surety of income generation and acquisition within the company’s provision was necessary in dealing with the request of pay lending and advance checking without any form of extortion. In addition, the company required that the customers have a checking account. The latter requirement necessitated for clearing and checking of any undue or misappropriated funds within the accounts of the customers in prior knowledge. It is important for liquidity of the customer’s financial as concerns Cash Connections especially into ethical handling of transactions without any malpractice. It provides cushion for both the company and the customer in return.
Cash Connections Company targeted the un-banked customers since the aim was to facilitate acquisition of access to mainstream financial services. The business model was to enable loans being paid in and produced through quick in-hand category as well as the easy repayment. Cash Connections was more beneficial to the customers and society as they were able to access check cashing and receive their financial dues without any struggle. For the company, transactional fees on credit financial services and basic payment had been wavered to the benefit of the customers as well as relaxed low-cost loans. It provided for the long-term security needs and access according to the provisional terms. The ethical procedures were utilized in delivery of the services at the consent of the customer’s preferences and agreed repayment periods as opposed to other competitors in the same business environment.
One of the major evidences that Cash Connections depicted in the ethical and beneficial provisions to the customers and society is the stipulation of payday lending of its operations. The company was vocal in disclosing the truth in lending on respective cash checking and loans to its customers. The APRs and charges of all finances involved were available before the customer agreed to them or declined. The company also used best debt collection practices with fair authority and application of third-party legislation. In the returns of the company’s operational incomes, profit margins and gains from the cash lending, checking and loans, there was no misappropriated or un-accounted basis on any customer balances. It also offered consumer protections against the rising tide of regulation especially on the advances services to any financial obligations met by the company.
The redeeming quality of the pay lending industry was devout on the roll over effect. For example, consumers required short-term loans in order to cater to unexpected demands and expenses within a short period. Once the industry players provided for the loan, communication on the interest rates and repayment period was made available. The problem realized was when the consumers required additional loaning within the repayment period of the previous one. In order to facilitate the financial requirements, anew loan would be overwritten to cover the repayment of the previous and set new terms for fresh repayment with increased interest rates. The roll over effect was then unethical and not beneficial to the customers or society as more and more overwritten loans would be required. The business model and strategy was not ideal for Cash Connections especially with concerns of the customer welfare.
In order for Allen Franks, on behalf of Cash Connections, to enable ethical strategy and non-engagement in wrongdoing, the company has to serve customers with compliance of the industry rules without any form of malpractice. By sticking to the three controls, Cash Connections can distance itself from the competitors whose aims are not ethical and beneficial to the customers. The company should strictly adhere to addressing of the truth when lending any financial services and loans to customers from the first instance. Once the collection of the debts is due, the communicated standard produces should guide the ethical process of servicing the repayments. It should be in line with the targeted customers, who have income sources for surety. In addition, the company should state the interest rates, which are certified according to the economic dimensions and ability of the customers according to consent.
Another recommendation for Allen Franks is the deliberate customer education on the implications of the industry regarding the repayment charges, financial services, communicated period, and the legal regulations of the process. Once all the customers understand the ethical requirements of their loan applications and cash checking, the company can institute contractual signing for authenticity of the agreement. Through voluntary undertaking, the company can reduce any form of differences with the customers in any form of extortion or profit-engineered mechanisms. In return, the translated transaction between the two parties can then be beneficial to all while creating trust at all levels. In addition, Allen Franks should seek rates regulations according to the federal czar pertaining financial obligations to the customers.
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