AFSA Statement re: Recent Traditional Installment Lending Story
The American Financial Services Association (AFSA) typically does not comment on the business practices of individual members.
However, in light of yesterday’s story about Mariner Finance in the Washington Post, we feel a response is needed. The beneficial nature of traditional installment loans was fully recognized by the federal government last October when the Bureau of Consumer Financial Protection (BCFP) exempted the industry from the final small dollar rule. Further, former BCFP Director Richard Cordray testified to the benefits of traditional installment lending before Congress in 2015. The BCFP sought to protect consumers from predatory, short-term lenders who entice borrowers into a cycle of debt with quick cash. Traditional installment loans are not this type of product.
AFSA pointed this out to the Washington Post several weeks ago during the course of their research. AFSA will continue to work with members of Congress and the Administration to illustrate the value of traditional installment lending.
See Mariner Finance’s statement on its website.
July 3rd, 2018
