AFSA Testifies on Lending Regulations in Nevada
AFSA’s state government affairs team recently testified in front of the Nevada Financial Institutions Division regarding draft rules for two bills that were passed last legislative session. Matt Kownacki, Director of State Research and Policy, testified on draft regulations for Nevada SB 201, which requires lending companies to submit information to a centralized database. In testimony, AFSA took issue with the division’s requirement that traditional installment lenders submit information to the database, because the regulations do not reflect the significant differences between traditional installment lenders and the much more risky deferred deposit and title lenders. Unlike deferred deposit or title loans, traditional installment lenders report information directly to credit bureaus, making the database reporting requirements duplicative and unnecessary. In addition, database reporting requirements would pose significant new costs on consumers, due to an increased compliance burden and security concerns. In addition to AFSA’s oral testimony, AFSA sent a comment letter to the division.
AFSA Senior Vice President Danielle Fagre Arlowe testified on behalf of multiple financial services trade associations regarding draft regulations for Nevada SB 311, which allows an applicant for credit with no credit history to request that the creditor deem the applicant’s credit history to be identical to that of the applicant’s spouse during the marriage. AFSA argued that these new, unprecedented requirements would conflict with federal laws such as the Fair Credit Reporting Act and the Equal Credit Opportunity Act. A copy of AFSA’s testimony can be found here. These comment letters can be found on the direct advocacy section of AFSA’s website.
October 1st, 2020 by Dan Bucherer