A bipartisan group of Representatives recently led by Rep. Blake Moore (R-UT) sent a letter to FDIC Chair Martin Gruenberg, urging the withdrawal of the proposed rule governing parent companies of industrial banks and industrial loan companies. The letter highlighted the uncertainty that would occur if the rule was finalized and how that would impede the ability of ILCs to offer crucial products and services to consumers. The letter states emphatically that the proposed rule “overturns the governance regime of existing banks and lengthens the already complex application process for new charters, despite no congressional authorization or evidence that the present regulatory structure is not working.” ILCs are subject to the same laws and regulations as other state banks, and already must comply with the same regulatory requirements and oversight as any other FDIC-insured depository institution.

AFSA also submitted a letter to the FDIC, reiterating that industrial banks continue to demonstrate financial strength in meeting the needs of the communities that they serve. This rule would hamstring these institutions and hinder the tangible benefits offered by these structures. AFSA urged Chair Gruenberg to withdraw the rule, which would enable the FDIC to diversify the concentration of risk to the insurance fund, that is currently posed by a few large institutions.

This issue affects a number of industries, as the Alliance for Automotive Innovation and National Automobile Dealers Association also submitted a letter to Chair Gruenberg.

We are grateful to all these members for their leadership in this space:

Congressman Blake Moore (R-UT)

Congressman John Curtis (R-UT)

Congressman Burgess Owens (R-UT)

Congresswoman Celeste Maloy (R-UT)

Congressman Bill Huizenga (R-MI)

Congressman Frank Lucas (R-OK)

Congressman Mark Amodei (R-NV)

Congresswoman Dina Titus (D-NV)

Congresswoman Lisa McClain (R-MI)

Congressman Shri Thanedar (D-MI)

Congressman Steven Horsford (D-NV)

Congressman C.A. Dutch Ruppersberger (D-MD)

Congresswoman Haley Stevens (D-MI)

Congressman Steve Cohen (D-TN)

Congressman Ritchie Torres (D-NY)

Congressman Vicente Gonzalez (D-TX)

Congressman Joseph Morelle (D-NY)

Congressman Pete Sessions (R-TX)

Congressman Timothy Kennedy (D-NY)

AFSA Advocates ILCs
Oct 16, 2024

A bipartisan group of Representatives recently led by Rep. Blake Moore (R-UT) sent a letter to FDIC Chair Martin Gruenberg, urging the withdrawal of the proposed rule governing parent companies of industrial banks and industrial loan… Read the rest

AFSA Supports Congressional Action on Credit Repair Scams
Oct 16, 2024

Yesterday, Representatives Wiley Nickel (D-NC) and Young Kim (R-CA) introduced the bipartisan “Ending Credit Repair Scams Act” (HR 9991). This bipartisan legislation would protect financially distressed consumers from shady credit… Read the rest

Joint Amicus Brief on CFPB’s Recent Supervision & Examination Manual Changes
Oct 15, 2024

AFSA recently joined the Bank Policy Institute (BPI) and America’s Credit Unions (ACU) in filing an amicus brief in support of the argument that the CFPB’s recent changes to the Supervision and Examination Manual go far beyond policing… Read the rest

The CFPB’s Perpetuation Problem
Oct 11, 2024

The New York Times reached out recently for AFSA’s perspective regarding the recent Consumer Financial Protection Bureau supervisory review of auto financing practices. We were happy to share some thoughts for the Times’ story (subscription… Read the rest

AFSA’S HURRICANE RELIEF
Oct 08, 2024

AFSA has launched a fundraising effort to support short- and long-term recovery efforts in communities across the southeast U.S. affected by Hurricanes Helene and Milton, virtually raffling off one fully paid registration for the 2025… Read the rest

October White Paper | Buy Now, Pay Later
Oct 02, 2024

AFSA’s State Government Affairs team has released its October white paper, which is focused on “buy now, pay later” (BNPL) services.

The rise of online shopping has fueled the popularity of BNPL services, which allow consumers… Read the rest

News From Our Members | PayNearMe Expands Presence in Personal Lending With GOLDPoint Systems Partnership
Oct 02, 2024

“News From Our Members” is sponsored content produced by AFSA’s Business Partners’ to provide thought leadership and best practices for AFSA member companies. For more information about this sponsored content opportunity, contact Dan… Read the rest

Featured Business Partner | ACI Worldwide
Oct 01, 2024

The featured Business Partner for the month of October is ACI Worldwide

As an unrivaled leader in billing and payments, ACI Worldwide offers ACI Speedpay, proven to drive efficiency and increase collections. Through our comprehensive suite

… Read the rest

News From Our Members | PayNearMe Expands Cutting-Edge Payment Features and Partner Integrations to Empower Auto and Personal Lenders
Sep 30, 2024

“News From Our Members” is sponsored content produced by AFSA’s Business Partners’ to provide thought leadership and best practices for AFSA member companies. For more information about this sponsored content opportunity, contact Dan… Read the rest

Help After Helene
Sep 29, 2024

While the remnants of Hurricane Helene continue up the inland southeast, the devastation to our fellow citizens’ lives is only beginning to be understood, particularly in eastern Tennessee and western North Carolina. AFSA, its member… Read the rest

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