The Pew Charitable Trusts released a report on installment loans entitled State Laws Put Installment Loan Borrowers at Risk: How outdated policies discourage safer lending. It is important to note that this title is misleading to readers and negates a generally positive report on installment lending and the important role it plays in the lives of millions of Americans.
The report confirms what AFSA has long known to be true for over 100 years―installment lenders offer an affordable, responsible form of credit to under-served borrowers, without requiring access to borrowers’ checking accounts.
Pew’s research found that:
- Approximately 85% of installment loans have monthly payments of 5% or less of a borrower’s monthly income and payments are structured to create a pathway out of debt;
- $500 installment loan with a term of several months is three to four times less expensive than a payday or title loan; and that
- Whereas payday and title lenders rely on unaffordable payments to drive profitability, installment lenders and borrowers both benefit when loans are repaid on schedule.
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Pew Report Confirms Benefits of Installment Lending
Oct 18, 2018
The Pew Charitable Trusts released a report on installment loans entitled State Laws Put Installment Loan Borrowers at Risk: How outdated policies discourage safer lending. It is important to note that this title is misleading to readers… Read the rest
AFSA Webinar to Cover Digital Customer Engagement
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Join us on Tuesday, November 6 at 2 p.m. ET as ACI Worldwide presents Text Talk: Customer Engagement & Payments Go Mobile.
Mobile devices have indisputably taken a central role in our lives, with consumers now happily paying for almost… Read the rest
Speedpay® Pulse Reveals Key Auto Finance Borrower Trends
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The below article is part of AFSA's Business Partner webinar program. Speedpay will feature it's webinar on Tuesday, November 13 at 2:00 p.m. ET, entitled Speedpay® Pulse: Consumer Research Reveals Preference for Traditional… Read the rest
Top Five Lending Trends for 2019
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The following article is part of AFSA's Business Partner Webinar Series. You can learn more during PayNearMe's webinar on Wednesday, Oct. 17 at 2 p.m. ET entitled Top Five Lending Trends for 2019. Registration is open now.
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AFSA’s State Government Affairs (SGA) team this week published its white paper on the California Consumer Privacy Act. The paper takes an in-depth look at California's new privacy law, which was signed by Governor Brown this June… Read the rest
AFSA Members Should Qualify for Tax Deduction
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On Oct. 1, AFSA wrote to the Internal Revenue Service (IRS) asking that it clarify that indirect finance companies qualify for a 20 percent deduction the way direct lenders do.
The IRS issued proposed rules establishing regulations to implement… Read the rest
Connecticut Announces No Action Position on Collection of Race Data Following AFSA Letter
Sep 28, 2018
On September 28, the Connecticut Department of Banking issued a memo announcing a no action position regarding Section 97 of HB 5490/Public Act 18-173, which amended state law to require sales finance companies to collect and maintain records… Read the rest
Why finance companies are using verification tools at record levels
Sep 27, 2018
The following article is part of AFSA's Business Partner Webinar Series. You can learn more during Equifax's webinar on Oct. 2 at 2 p.m. ET entitled Verify to Clarify – Know More About Your Customers to Help Grow & Increase… Read the rest
SGA report previews pros and cons of battleground gubernatorial races
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AFSA’s State Government Affairs (SGA) team this week published its White Paper on the 2018 Gubernatorial Elections Preview, examining the races in states that will hold elections.
In 36 states with elections, Republican governors… Read the rest