Today the California Assembly adjourned without reconsidering the “COVID-19 Homeowner, Tenant, and Consumer Relief Law of 2020,” (AB 2501), which if approved would have required creditors to provide up to nine months of vehicle payment relief-with a repossession ban for two years (except under certain circumstances)-and 12 months of mortgage payment relief.
It would have significantly hindered consumers’ access to credit, and weakened broader capital markets, by effectively turning vehicle secured credit obligations into unsecured loans. This may have led to ratings downgrades for vehicle asset-backed securities and certainly would have led to a collapse in confidence in the marketplace. Below is AFSA's statement on the legislation from Danielle Fagre Arlowe, Senior Vice President and head of the State Government Affairs Department:
The American Financial Services Association and its member companies are pleased that the California Assembly declined to approve AB 2501. The legislation, while well intentioned, would have created greater economic hardship for consumers and businesses alike by limiting consumers’ access to credit and undercutting confidence in some forms of asset-backed securities in the capital markets.
The COVID-19 pandemic has created a unique set of circumstances for American consumers and businesses, and the consumer credit industry has taken unprecedented steps over the past four months to work with consumers to ensure the economic disruption many have experienced does not create undue hardship on them. AFSA and its members have made clear their ongoing commitment to work with their customers to resolve any financial challenges they may continue to experience in the months ahead.
AFSA Statement on CA Assembly Adjournment Without Reconsideration AB 2501
Jun 18, 2020
Today the California Assembly adjourned without reconsidering the “COVID-19 Homeowner, Tenant, and Consumer Relief Law of 2020,” (AB 2501), which if approved would have required creditors to provide up to nine months of vehicle… Read the rest
CFPB Launches Pilot Advisory Opinion Program
Jun 18, 2020
The Consumer Financial Protection Bureau (CFPB) today launched a pilot advisory opinion (AO) program to publicly address regulatory uncertainty in the Bureau’s existing regulations. In a July 2018 letter to the CFPB on guidance,… Read the rest
Auto Lending Economic Outlook & Optimization/Risk Mitigation Strategies for the Way Forward
Jun 17, 2020
Cox Automotive Chief Economist Jonathan Smoke returns on June 18 at 2:00 p.m. ET to keep lenders apprised of market conditions and financial predictions – particularly with off-lease inventory expected to surge and used retail to … Read the rest
TODAY | Virtually Huddle Up for Lunch & Learn on Post-Pandemic Business Strategies
Jun 15, 2020
Join senior leaders of the American Financial Services Association (AFSA) for AFSA Premier Partner Solutions by Text’s “Virtual Lunch and Learn Huddle Week” from June 15th through the 19th.
At 1:00 p.m. ET each day, Solutions… Read the rest
LISTEN | Auto Remote Sales Compliance
Jun 11, 2020
In this episode of the AFSA Extra Credit Podcast we talk with Eric Johnson, Partner with Hudson Cook LLP. As the American economy reopens, businesses are looking for ways to remain accessible to their consumers while prioritizing their safety… Read the rest
Remembering Ray Biggs
Jun 10, 2020
AFSA President & CEO Bill Himpler sent the below message to members yesterday afternoon remarking on the passing of Ray Biggs, who left an indelible mark on the consumer credit industry.
Members:
I am saddened to share the news that… Read the rest
Save the Date! 2020 Combined Annual Meeting and Independents Conference & Expo
Jun 09, 2020
Better Together!
Save the Date for the 2020 AFSA Annual Meeting and Independents Conference & Expo
October 4-7 at the Grand America Hotel in Salt Lake City, Utah
The American Financial Services Association is – in a single event… Read the rest
ICYMI | AFSA Locked In During Lock Down
Jun 09, 2020
AFSA has been working hard during the coronavirus pandemic to protect access to consumer credit and choice. To the left are some of the many initiatives that AFSA has undertaken. On the AFSA Extra Credit Podcast, recorded last wekk, we spoke… Read the rest
AFSA Voices Support for PPP Expansion
Jun 08, 2020
The American Financial Services Association (AFSA) today submitted a comment letter to Senate Committee on Small Business and Entrepreneurship Chairman Marco Rubio (R-FL) and Ranking Member Ben Cardin (D-MD) regarding expanding access… Read the rest
Expanding Lending Facility Will Expand Consumer Opportunity
Jun 05, 2020
In late May the Federal Reserve finally announced details of its next highly appreciated emergency lending facility, the Main Street Lending Program (MSLP). The goal of the MSLP is tohelp small and medium-sized businesses that were financiallysound… Read the rest