SGA Focuses on Optional Protection Products in Whitepaper
This week AFSA’s State Government Affairs (SGA) team published a white paper on Optional Protection Products. Optional protection products—sometimes referred to as ancillary or voluntary protection products—are sold and financed in connection with a credit agreement to offer borrowers peace of mind or additional protections.
The peace of mind makes optional protection products popular with consumers. In fact, a 2017 survey from the University of Michigan found that 85 percent of installment loan borrowers thought credit insurance products are a “good idea,” and more than 70 percent of those who purchased credit insurance products would purchase them again.
As these products continue to face scrutiny from consumer advocates and in the states, this paper provides an overview of several types of optional protection products and highlights legislative trends over the past five legislative sessions.
This white paper, and all other SGA white papers, can be found on the SGA resources section of the AFSA website
September 1st, 2020
