American Financial Services Association - Protecting and <em>Empowering</em> Consumers
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Protecting and Empowering Consumers

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Last week, the Baltimore Sun ran an opinion piece that inaccurately conflated  payday lenders with traditional installment lenders.  While we appreciate the authors’ concern with consumer protection, the focus should be on arming consumers with facts that allow them to make fully informed decisions about their finances.

There is a real difference between payday loans and standard traditional installment loans, including clear and equal monthly payments, no balloon or prepayment penalties and the opportunity to build credit.

For installment loans, interest rate is not necessarily the best indicator of the true cost of the loan.

In short — Let’s say you borrow $100 and you only must repay $101. If you repay that loan in one year, 365 days from when you took it out, the annual percentage rate (APR) will be just one percent. If you repay it in one month, the APR is 12 percent. One week? 52 percent. If you pay the loan back the day after you take it out? The rate is what appears to be a massive 365 percent. If you repay that $100 loan with $1 of interest an hour after you take it out, you’ll be paying a whopping 8,760 percent APR.

For traditional installment loans, which do not include hidden fees or repayment penalties, the determining factors in a consumer’s decision-making are generally the length of the loan, as well as the fixed monthly payment amount.

Yes, protect consumers, but don’t hinder their access to choice when they need financial help.

An abridged version of this article appeared on BaltimoreSun.com on September 8, 2020.

Protecting and Empowering Consumers
Sep 09, 2020

Last week, the Baltimore Sun ran an opinion piece that inaccurately conflated  payday lenders with traditional installment lenders.  While we appreciate the authors’ concern with consumer protection, the focus should be on arming consumers… Read the rest

AFSA’s Views on Trends in Regulation and Regulatory Reform
Sep 09, 2020

This week, the American Financial Services Association (AFSA) sent a letter to the House Committee on Oversight and Reform to share its perspective on recent trends in regulation and regulatory reform.  AFSA shares Congress’ views that … Read the rest

Arlowe to Represent AFSA on NMLS Panel
Sep 08, 2020

Tomorrow, September 9 at 3:30 p.m. ET, AFSA Senior Vice President Danielle Fagre Arlowe will represent AFSA at the Nationwide Multistate Licensing System (NMLS) Ombudsman Virtual Meeting. Arlowe will present on the importance of remote… Read the rest

Ask Cal About a Magical Date in MLB History at the Annual Meeting
Sep 08, 2020

We in DC – and Cal Ripken fans everywhere – just celebrated the 25th Anniversary of his breaking Lou Gehrig’s consecutive-games-played record.

Hear the stories of that season … and better yet, ask the Iron Man himself about it!

Watch… Read the rest

Fussell Appointed to AFSA Board
Sep 03, 2020

George Fussell, President & CEO of SAFCO was recently appointed to the AFSA Board of Directors. He also serves on the Independents Section Board, Independent Auto Finance Executives Group and the State Government Affairs Committee.… Read the rest

Need a Resource While We Upgrade?
Sep 02, 2020

If you require a resource while we upgrade afsaonline.org, please reach out to an AFSA staff member directly. Alternatively, send an email to communications@afsamail.org. We’re happy to help.… Read the rest

Launching the new Afsaonline.org
Sep 02, 2020

This morning, AFSA is launching a new and completely re-designed afsaonline.org. You may notice some odd behavior over the next several hours as make this transition. Additionally, your profile and meeting registration will be unavailable.… Read the rest

Remove the Rate Cap from the Jobs and Neighborhood Investment Act
Sep 02, 2020

The objectives of the bipartisan, bicameral legislation, Jobs and Neighborhood Investment Act, are laudable. These bills, H.R. 7709 and S. 4255, direct billions in new investments to help low-income and minority communities withstand… Read the rest

SGA Focuses on Optional Protection Products in Whitepaper
Sep 01, 2020

This week AFSA’s State Government Affairs (SGA) team published white paper on Optional Protection Products. Optional protection products—sometimes referred to as ancillary or voluntary protection products—are sold and financedRead the rest

Joint Trades Comment on FCC’s Call Blocking Efforts
Sep 01, 2020

This week, AFSA joined other trade groups in commenting on the Federal Communications Commission’s (FCC) proposed rulemaking to implement the TRACED Act. Specifically, the trades expressed support for the FCC’s goal of eliminating illegal… Read the rest

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