Fending Off the “True Lender” Doctrine
AFSA’s State Government Affairs recently released its July white paper that examines growing concerns about the “true lender” doctrine and state efforts to curb evasion of interest rate caps through bank-fintech partnerships.
While banks can legally export interest rates under federal law, some states argue that non-bank partners effectively act as lenders and are using these partnerships to bypass state usury laws. In response, several states have enacted or considered anti-evasion laws to define true lenders based on who holds the predominant economic interest, signaling a shift toward stricter consumer lending regulations.
This and other SGA letters are on the direct advocacy section of AFSA’s website.
July 11th, 2025
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