Creative Bailout Payday Loans

Creative Bailout Payday Loans - Creative Bailout Payday...

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Creative Bailout Payday 1 Running Head: ETHICAL ORGANIZATION Ethical Organization Profile Brian McKean Candice Vandergrift Jeannette Sutherland Joey Finley Matthew Bute University of Phoenix
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Creative Bailout Payday 2 Ethical Organization Profile Creative Bailout is a competitor in the industry of non-traditional financial services for individuals with less than desirable credit or those who need money immediately and cannot qualify for traditional loans. Because of its exceedingly high interest rates, it acquires many critics, which positions its morals and ethics often in question. However, due its high-risk clients and not requiring an extensive credit or background check, the company must protect themselves financially. This industry is also highly regulated and Create Bailout strives to maintain the highest ethics possible. Each employee must follow a code of ethics along with a code of conduct that instructs employees on how to deal with ethical dilemmas that might arise. Creative Bailout also constantly reviews ethical guidelines with their employees monthly via e-mail. To further conduct business ethically, Creative Bailout should give loans only to those who can pay them back. Managers monitor employees and their behavior along with completing a bi-annual performance review. Creative Bailout is proactive in dealing with ethical dilemmas. They maintain the highest quality managers who act as role models for the rest of the staff. If ethical infractions occur, there are clear-cut consequences and second infractions would result in termination. Although it has many critics, Creative Bailout is a leader in ethical training and strives to provide honest, professional financial help to those who cannot receive it elsewhere. Moral and Ethical Issues Creative Bailout operates in a subcategory within the financial services industry. In general, Creative offers personalized financial services for those whose credit does not necessarily qualify traditional loans, credit cards or other financial lending tools provided by more traditional banks. More specifically, services range from basic check cashing and money orders to title loans and cash advances otherwise known as “payday loans.” Because of the
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Creative Bailout Payday 3 nature of the services and individuals’ situation when receiving these services, payday loans and title loans often bring about questions of ethical and moral correctness. Payday loans, unlike traditional short-term personal loans provided by organizations such as Household Finance and American General Finance, are for much smaller amounts and do not require a thorough credit check. The main requirement, collateral in the form of a personal check that is held for a period not to exceed 14 days; the typical cycle of pay periods for most Americans. However, unlike traditional lending, the interest rates on payday advances are much larger, in some cases exceeding 300% annual percentage rate or APR (Amscot, 2009). The interest rate charged for payday loans is often the first area to receive ethical and
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This note was uploaded on 03/29/2011 for the course CM 105 taught by Professor Smith during the Spring '11 term at University of Phoenix.

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Creative Bailout Payday Loans - Creative Bailout Payday...

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