Introduction

We recommend that platforms follow our best practices so that they can best benefit from our products and provide the optimal experience to their end users.

Make Sure You are Being Compliant

Please make sure you understand and follow all compliance requirements related to lending. Failure to meet these requirements requirements can lead to legal liabilities and potential termination of Synapse's services for your platform.

When your platform issues loans, you will be required to inform the user about the loan's APR, as well as other loan details and payment dates. When terminating revolving loan accounts, you will be required to send termination letters (delivered in response from the Terminate Revolving Loan API call within info.agreements with type of TERMINATION_LETTER). Additionally you will need to ensure that the products and services you offer follow UDAAP requirements (you can find more details about UDAAPs here and on our General Legal Disclosures page).

Make Sure You Account for ACH Return Risk

If you allow your users to make loan payments via ACH debits, you will be exposed to ACH Return risk. ACH Returns can occur to 60 days after the transaction settlement date. Please bear in mind the platform will be responsible for any generated outstanding liabilities. For more information about ACH Returns, please refer to our page on mitigating risk for ACH transactions.

To avoid this risk you may wish to opt for the following loan repayment methods for your platform:

• card processing
• internal account transfers
• push ACH from an external account via AC/RT numbers