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STATEMENT | House Members Introduce Anti-Consumer Rate Cap Bill

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STATEMENT | House Members Introduce Anti-Consumer Rate Cap Bill

This week, Reps. Jesús “Chuy” García (D-IL), Glenn Grothman (R-WI), and other House Democrats reintroduced a 36% “all-in” rate cap bill. The bill, entitled, The Veterans and Consumers Fair Credit Act (H.R. 5974), would extend the Military Lending Act (MLA) rate cap to all consumers. The following statement may be attributed to Bill Himpler, President and CEO of the American Financial Services Association:

“The Military Lending Act’s 36% rate cap has not only proven to be unworkable based on recent actions brought by the Consumer Financial Protection Bureau, with active military personnel racking up debt with predatory lenders, but also unknowable, because the Department of Defense to date has released no data on the effect of the rate cap on military personnel and their families.

“Now, in a period of great economic uncertainty, when U.S. consumers may need greater access to credit due to rising prices for everyday staples, including gas to get to work, the House of Representatives may consider creating even greater financial uncertainty with a 36% rate cap for all American consumers. Less access to traditional installment lenders is not the way to help consumers, and the American Financial Services Association will work to ensure policymakers understand the harm that a rate cap could create for both consumers and the broader American economy.”

November 18th, 2021 by