Credit Services Organization (CSO) vs. Credit Access Business (CAB)

 
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Credit Services Organization (CSO) vs. Credit Access Business (CAB)

As the economic recovery struggles to gain traction and many Americans find themselves drowning in overwhelming debts, it’s far more common for consumers to consider more creative borrowing options just to get by. Here at LoanMart, we’ll do our best to provide help when needed, by turning investments in a car into liquid funds.

In an effort to provide our customers with the best borrowing options for every specific situation, we are turning our focus to educating consumers about financial matters. Laws are in place to ensure that consumers are protected, and we want to help borrowers understand the difference between a credit services organization and a credit access business.

Credit Services Organization (CSO)

CSOs were formerly defined as credit repair companies, and are any establishment that provides payment in order to extend consumer credit. CSOs are regulated by the government to ensure that all stipulations are met and that consumers don’t pay outrageous fees for help with credit repair.

Credit Access Business (CAB)

The term credit access business is used in some states to refer to the new model of CSOs. Payday loan companies and car title loan companies are required to have a CAB license that is more specific and detailed regarding the laws of these loans. A credit service organization (CSO) was the former model and was an all-encompassing establishment that did little to regulate how loans are given and paid back.

The CAB license was created by lawmakers in an attempt to define strict parameters and regulations for the borrowing industry.

We’re Here When Needed

With so many confusing options available to consumers, it’s easy to become overwhelmed when choosing the right option. Here at LoanMart, we do our best to make it easy. If a customer owns a car, truck, van or SUV that is less than ten years old, we may be able to help gain access to the funds needed.

Call Us Today

If a customer is struggling when trying to make ends meet and doesn’t know where to turn, call 1-800-LoanMart to speak to a friendly representative today.

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