Compliance Obligations for Point-Of-Sale Lenders & Their Merchants [CHECKLIST]

Traditionally, point-of-sale financing was offered to consumers for the purchase of big-ticket items, such as furniture, mattresses, appliances, and other costly goods. But, POS financing is becoming more ubiquitous, as consumers look for this type of financing for lower-ticket items, such as clothing, shoes, or smaller household items. 

While this is beneficial to both the consumer and the merchants offering this financing option, it poses several compliance risks to point-of-sale lenders.

What Are The Compliance Risks?

The regulations governing point-of-sale lending can be onerous, change often, and vary by state. It’s crucial to ensure that both lenders and their merchants are abiding by these regulations in order to mitigate their risk of enforcement by the regulators. 

To take it one step further, point-of-sale lenders are responsible for the content shared and practices of their merchant partners. Lenders must be on the lookout for foul play by continuously monitoring their merchant partners for regulatory and brand compliance.

A Compliance Checklist for Point-of-Sale Lenders

Use this checklist to help better navigate the regulatory landscape, understand the requirements for point-of-sale lenders under Regulation Z and Americans with Disabilities Act (ADA), and ensure merchant compliance.

If you’d like to learn more about how PerformLine can help mitigate your risk and ensure merchants’ compliance, speak to one of our experts today.


Tags: Regulatory Compliance, Point-Of-Sale, Regulation Z, Merchant Compliance


An analysis of consumer complaints submitted to the CFPB and the risk signals they present for financial institutions.