Guides

Compliance Guardrails

Overview

Pier’s Compliance Guardrails is a rules engine that pre-checks your credit products (consumer or business) against applicable state and federal lending requirements, before you show an offer or facilitate a loan transaction.

  • Incorporates our proprietary knowledge database with federal rules, state-by-state regulations, guidance from regulators, communication with regulators, case laws, industry best practices, etc.
  • Guardrails can be tailored to your program design, licenses and risk tolerance. As you add licenses, we can update the Compliance Guardrails accordingly to grow and scale at your pace.
  • Works like traffic control: we inform you whether an offer is compliant or not based on the parameters you pass to us.
  • Check product parameters before presenting offers to users;
  • Incorporate into underwriting and risk management;
  • Gate product launches by state, based on your licensing regime and regulations;
  • Audit trail and rationale for why an offer was allowed or blocked;
  • Regulatory reporting and examinations;
  • Vendor or debt capital diligence.

Key Features

  1. Create a Borrower: Create either a consumer or business borrower. The borrower profile will be used to check against offers based on the state the borrower is located in and applicable regulations.
  2. Check Offers: Validate proposed loan terms against our Compliance Guardrails. We factor in borrower type, credit product, credit activity, loan amount, APR, fees, etc. (See Check Offers section of our docs).
  3. Retrieve Coverage: Fetch your standard or customized coverage matrix by state and product type. You will be able to pull either consumer coverage or commercial coverage depending on program configuration and API key settings.
  4. Sandbox Environment: We allow you to set different Compliance Thresholds for sandbox vs. production environments. This creates a safe environment to test and iterate on your product pre-launch.

Optional Features

We’ll set your API keys accordingly based on your program configurations and optional features.

  • KYC: You can use Pier KYC or bring your own. In compliance with AML/OFAC requirements, borrower KYC needs to be completed before checking offers, or you will be returned a ‘borrower KYC’ rejection reason. This can be bypassed if you’re using your own KYC process or alternative vendor.
  • Facilities: You can create and list facilities in our system, or yours, or both. This is commonly used with license management, regulatory reporting, audits and examinations, where the facilities form audit logs with real-time data stamps.
  • Retrieve rejection reasons: You can use our API to retrieve rejection reasons. Depending on your program, you may be required to send Adverse Action Notice that lists the rejection reason for a borrower’s credit application, if you rejected their credit application.