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American Financial Services Association

Whitepaper Covers Loans-by-Mail

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Whitepaper Covers Loans-by-Mail

This week, AFSA’s SGA team released its October white Paper which covers loans-by-mail, also referred to as “marketing checks” or “live checks”. First appearing in the 1980s, loans-by-mail have been an effective and popular way for traditional installment lenders to make a prescreened, firm offer of credit to pre-approved borrowers. The vast majority of borrowers who receive their credit via a loan-by-mail offer have no problem repaying the loans according to the installment schedule laid out for them.

The white paper also takes a deep dive into recent advocacy and legislation. 24 states have statutes or regulations governing loans-by-mail, with most states requiring that lenders provide certain disclosures with their offers. This past legislative session, four states considered legislation governing loans-by-mail, and New York recently enacted a law that would prohibit lending institutions from sending unsolicited mail-loan checks.

The paper is also available under the State Resources section of AFSA’s website.

October 5th, 2022 by