Sen. Jack Reed (D-RI) reintroduced legislation to impose a national 36% “all in” rate cap on consumer loans. Small dollar loans, credit cards, and other forms of short-term credit are crucial in helping consumers from all economic backgrounds meet everyday needs, whether for planned or unexpected emergency expenses.
The proposed 36% APR nationwide rate cap would make it more difficult for many consumers to obtain credit and harm the very consumers the legislation seeks to protect. AFSA believes Congress should reject proposals restricting consumer credit options and look for ways to expand access to safe and affordable credit.
Most recently, the Federal Reserve Bank of New York confirmed rate caps do not work and published a report focusing on three states (South Dakota, North Dakota, and Illinois) that implemented 36 percent all-in rate caps on many types of non-bank consumer loans between 2016 and 2022. One of the key conclusions of this research is that “…lending to the riskiest cohort of borrowers decreased sharply under usury limits. These borrowers were unable to find lower cost loans from banks and credit unions, as proponents of rate caps may have expected [emphasis added]. Nor does delinquency risk for this cohort improve, implying the rate caps reduced credit access but not credit stress.”
This legislation has historically been opposed by AFSA and many other financial organizations. AFSA will keep you updated if this is legislation does advance.
A Retread Partisan Rate Cap Bill
Feb 06, 2026
Sen. Jack Reed (D-RI) reintroduced legislation to impose a national 36% “all in” rate cap on consumer loans. Small dollar loans, credit cards, and other forms of short-term credit are crucial in helping consumers from all economic backgrounds… Read the rest
SCAM Act Introduced
Feb 06, 2026
Senate Banking Committee Sens. Ruben Gallego (D-AZ) and Bernie Moreno (R-OH) announced the bipartisan “Safeguarding Consumers from Advertising Misconduct (SCAM) Act.” The legislation requires that online platforms take reasonable… Read the rest
Industry Expertise | From Rising Insurance Costs to Repos: Managing Auto Loan Risk in Today’s Market
Feb 04, 2026
“Industry Expertise” 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
Industry Expertise | FinnOne Neo®: Turning Data into Borrower Loyalty
Feb 02, 2026
“Industry Expertise” 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
C3: Future Optimism Despite Q4 Challenges
Jan 30, 2026
Finance companies are growing increasingly optimistic about the consumer credit landscape over the next six months, with lender confidence rising for the second consecutive quarter, according to the latest Consumer Credit Conditions… Read the rest
AFSA Webinar | The Future of Auto Finance Payments: Trends, Challenges, and What Lenders Can Do to Get Ahead
Jan 29, 2026
AFSA Webinar | The Future of Auto Finance Payments: Trends, Challenges, and What Lenders Can Do to Get Ahead
Thursday, February 19 at 2:00 p.m. ET
Auto finance is changing fast—driven by shifting borrower expectations, economic pressure … Read the rest
AFSA Continues to Press for Change to CFPB Consumer Complaint Database
Jan 28, 2026
AFSA staff has filed comments in connection with two CFPB proposals relating to the CFPB consumer complaint portal. These were routine notices of existing information collections relating to the “Consumer Complaint Intake System Company… Read the rest
2026 Outlook
Jan 27, 2026
The U.S. economy entered 2026 riding a wave of momentum. After a small contraction in the first quarter of last year, real GDP growth accelerated throughout 2025 and is on track to post an increase of between 2.5 and 3 percent (on a Q4/Q4 basis)… Read the rest
Financial False Promises
Jan 22, 2026
Affordability and cost-of-living concerns remain top of mind for many Americans. Despite a positive outlook for 2026, AFSA’s Consumer Credit Conditions (C3) Index for the third quarter of 2025 revealed ongoing concern among lenders and… Read the rest
FDIC Approves Industrial Bank Applications
Jan 22, 2026
The American Financial Services Association (AFSA) welcomes the approval of Industrial Loan Company (ILC) applications, including those for GM Financial Bank and Ford Credit Bank.
That the Federal Deposit Insurance Corporation has resumed… Read the rest