An example of “Dispersing Funds Directly”, as it relates to money being lent to a borrower by a lending institution would be:
Sending a Bank Draft to the car dealership to pay for a car that the customer is using the borrowed funds to purchase.
Consolidating all of the customer’s debt into one loan.
Informing the Credit Bureau that the customer will be using the new loan to repay other debt.
Depositing the proceeds of the loan directly into the customer’s bank account.