A small group of Senate Democrats recently introduced the Protecting Consumers from Unreasonable Credit Rates Act, which would cap fees and interest on consumer loans at an APR of 36 percent. While we appreciate the goal of barring unregulated and predatory actors from taking advantage of consumers and forcing them into unending cycles of debt, this legislation will actually prevent millions of hard-working consumers, including lower- and middle-income households, from accessing safe and regulated credit products.
The Federal Reserve’s report on small-dollar loans confirms the downsides of an across-the-board 36-percent APR rate cap. Consumers would be forced to borrow a higher amount than they need or want (if they even qualified for a larger loan), resulting in higher finance charges, longer repayment periods, and higher overall costs, despite the appearance of a lower APR on their loan. In addition, a recent study, Effects of Illinois’ 36% Interest Rate Cap on Small-Dollar Credit Availability and Financial Well-being, found that after the state enacted a 36 percent, all-in rate cap, several lenders left the state entirely. This reduced the number of loans available to subprime borrowers by 36 percent (29,000); 57 percent (4,700) of deep subprime borrowers were hit even harder.
It is essential for lenders, which have rigorous underwriting standards, like traditional installment lenders, to be able to provide affordable credit products that fit a customer’s budget rather than misusing the “all in” APR methodology proposed in this legislation. AFSA’s Case For Credit aims to educate the public about how traditional installment loans have helped consumers meet their unique credit needs and why APRs do not determine whether a loan is affordable.
Protecting or Preventing? How Rate Caps Deny Credit
Sep 17, 2025
A small group of Senate Democrats recently introduced the Protecting Consumers from Unreasonable Credit Rates Act, which would cap fees and interest on consumer loans at an APR of 36 percent. While we appreciate the goal of barring unregulated… Read the rest
AFSA Webinar | LOST IN THE MAIL: SOLVING REFUND DELIVERABILITY IN AUTO FINANCE
Sep 16, 2025
BUSINESS PARTNER WEBINAR
LOST IN THE MAIL: SOLVING REFUND DELIVERABILITY IN AUTO FINANCE
SEPTEMBER 25, 2025 AT 2:00 P.M. EST
Refunds may seem routine—but for auto lenders, they’ve become a hidden source of cost, compliance risk, and customer
THIS THURSDAY | AFSA Webinar | IMPLEMENTATION BEST PRACTICES: HOW TO OPERATIONALIZE PRICING ANALYTICS IN AUTO FINANCE
Sep 16, 2025
BUSINESS PARTNER WEBINAR
IMPLEMENTATION BEST PRACTICES: HOW TO OPERATIONALIZE PRICING ANALYTICS IN AUTO FINANCE
SEPTEMBER 18, 2025 AT 2:00 P.M. EST
End the spreadsheet torment and do away with the lengthy manual rate updates! If you are
Fed Nomination Advances
Sep 11, 2025
The Senate Banking Committee voted to advance Stephen Miran’s nomination to fill a Federal Reserve Board vacancy by a vote of 13-11 along party lines. Republicans hope to vote on his confirmation before the Federal Reserve begins its rate-setting… Read the rest
Driven by Hype: CFA’s Flawed Auto Loan Narrative
Sep 11, 2025
In a time when institutions – from the government agencies to the media to nonprofit groups – have credibility problems, imagine what happens when two of those said institutions, in this case USA Today and the Consumer Federation of America… Read the rest
AFSA Webinar | IMPLEMENTATION BEST PRACTICES: HOW TO OPERATIONALIZE PRICING ANALYTICS IN AUTO FINANCE
Sep 10, 2025
BUSINESS PARTNER WEBINAR
IMPLEMENTATION BEST PRACTICES: HOW TO OPERATIONALIZE PRICING ANALYTICS IN AUTO FINANCE
SEPTEMBER 18, 2025 AT 2:00 P.M. EST
End the spreadsheet torment and do away with the lengthy manual rate updates! If you are
Fed in Focus
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With conflicting economic data, from strong quarterly corporate financial reports in several important U.S. business sectors to jobs and inflation data that at times defies expectations, the role of the Federal Reserve remains in focus.… Read the rest
Waiting to Assess Inventory Risk?
Sep 03, 2025
In this episode of the AFSA Extra Credit Podcast, Dan chats with Brian Johnson, Vice President of Revenue Operations with DataScan on audits, how to manage risk and the importance of embracing real-time data. The upshot? If you’re waiting … Read the rest
Industry Expertise | Navigating Key Regulatory Shifts in MD, NE, & NV
Sep 03, 2025
“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
THIS THURSDAY | AFSA Webinar | Captive of the Future: How Technology is Reshaping Captive Finance Operations
Sep 02, 2025
Join us on September 4, 2025 at 2:00 p.m. EST for an exclusive webinar exploring the forces redefining the captive finance industry. With growing pressure from digital-first disruptors, changing customer behaviors, and the shift to EVs