Compliance with Lending Laws When Using Weave Payment Plans

Weave’s Payment Plan functionality is a great tool to provide access to services and help customers make timely payments over extended periods of time. However, there may be instances where use of the Payment Plan functionality could trigger some federal and state lending laws.

The following information regarding Payment Plans is not legal advice and is provided for information purposes only. Weave encourages you to seek legal advice from an attorney to obtain specific guidance-related compliance with Lending Laws and the requirements applicable to your business.

The Payment Plans feature allows your practice to create individual, unique payment arrangements with your patients. Weave has built this product in a way that allows you to decide the length of the repayment period and provide clear communication to your patients about the schedule and the amounts that will be due.

It is important to note, however, that Weave is not acting as a lender in providing the Payment Plan functionality. As such, any decision made is made directly between you, the practice, and the patient. If a patient fails to follow the payment plan, you will need to decide what steps to take. Weave makes it easy with its system to pause or cancel a repayment plan.

Also, in certain situations, providing individuals with the opportunity to delay payment of a debt could trigger federal and state lending laws. In most situations, if your payment plans include a repayment period of four or less installments and don’t have an Annual Percentage Rate (“APR”) associated with them, many federal and state lending laws will not apply. Also, if you intend to use payment plans only a few times a year, you likely won’t be subject to federal and state lending laws.

However, if you utilize the Payment Plan feature with a large population of your customers and have repayment periods that consistently extend beyond four installments, or if you apply an APR to your Payment Plans, you may want to consult a local attorney to see if federal and state lending laws are applicable to your practice.

If you want to avoid any questions around federal and state lending laws, you can also use Weave’s other payment functionality of allowing customers to pay with Affirm™ or Sunbit. These payment methods ensure that you get paid almost immediately, while the customer makes payments directly to these partners.

Keep in mind, we can’t provide you with legal advice. The Payment Plan feature is designed to assist you in providing access to services and improved repayment capabilities. Compliance with federal and state lending laws will depend on your particular use of the Payment Plans feature. This information should not be relied upon as legal advice or to determine how legal requirements apply to your use of the Weave service. Weave encourages you to seek guidance from your legal counsel regarding the requirements of federal and state lending laws and other relevant laws and regulations to ensure compliance.

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