AFSA joined seven other leading financial services trade associations on a letter to Sen. Josh Hawley (R-MO) expressing concern about the Capping Credit Card Interest Rates Act (S.2760), which would cap credit cards’ APR at 18%.
The letter signed by associations representing banks, credit unions, think tanks and non-bank financial institutions noted that the bill if signed into law would severely restrict credit access for Americans of all economic tiers, but especially those in the subprime space. The arbitrary 18% APR cap would also include fees and add-on products, further restricting financial institutions’ ability to serve their customers with products that help them meet their financial goals.
Interest rates allow financial institutions to price credit based on risk expanding availability. The APR includes the cost of underwriting, compliance, IT, and administration costs, as well as the cost of recovering losses.
The trades say the proposal would force consumers to seek credit through less secure, often predatory products. The Consumer Financial Protection Bureau’s (CFPB) recent rule arbitrarily capping credit card late fees compounds this issue, forcing even more Americans out of safe, reliable credit products.
The signatories of the letter concluded by reiterating a shared commitment to reducing consumer debt while simultaneously protecting access: “This goal can be achieved without creating barriers for accessing safe and affordable credit products by pushing consumers with troubled credit histories and those on the financial fringe outside of highly regulated financial products to far more costly and less regulated lenders.”
AFSA joined seven other leading financial services trade associations on a letter to Sen. Josh Hawley (R-MO) expressing concern about the Capping Credit Card Interest Rates Act (S.2760), which would cap credit cards’ APR at 18%.
The letter… Read the rest
How Vehicle Title Release Impacts Auto Retailing Overall
Cox Automotive
Routine title management is anything but: Paper vs electronic and release to third parties for resale, wholesale and insured total loss bring much complexity to loan
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Join us on September 21, 2023 at 2:00 p.m. ET for Local SEO: The Missing Piece To Your Marketing Success, presented by Amsive.
Join Bambi Frazier, Sr. Manager of Local SEO and Content at Amsive, to discuss why inflation rates and interest rates… Read the rest
This week, the Consumer Financial Protection Bureau (CFPB) reached a settlement with a credit repair organization (CRO) conglomerate, which includes payment of $2.7 billion and a 10-year ban on telemarketing activities. The settlement… Read the rest
Last week the 11th Circuit Court released its decision in Milgram v. Chase, for which AFSA submitted an amicus brief. The court ruled in in Chase’s favor.
The plaintiff, as well as the Consumer Financial Protection Bureau (CFPB), argued that… Read the rest
This episode of the Extra Credit Podcast is Part Two of our conversation with, Philip Bohi, VP of Compliance Education and Dr. Adam Gailey, Principal in the Financial Economics Practice at Charles Rivers Associates, on getting your Fair … Read the rest
Beehive State or Beer State?
If you’re joining us in the Beehive State for the 2023 AFSA Annual Meeting and you have a thirst for some hoppy goodness, you’re in luck. Salt Lake City may surprise you with its vibrant craft beer scene. Check… Read the rest
PayNearMe Celebrates Processing $1B in Digital Loan Disbursements to Fund Low-Income, Entrepreneurial Women For Nonprofit Grameen America
PayNearMe makes disbursing loans as easy, fast and convenient as receiving electronic payments;… Read the rest
AFSA members stressed the importance of access to credit directly with legislators and policymakers this week during AFSA’s annual fly-in.
Consumer credit is crucial to Americans from coast to coast. Engaging with policymakers is one of… Read the rest
In this episode of the podcast, Philip Bohi, VP of Compliance Education talks with Dr. Adam Gailey, Principal in the Financial Economics Practice at Charles Rivers Associates, on getting your Fair Lending house in order and looking carefully… Read the rest
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