Last week, AFSA, along with other associations, signed a letter to U.S. Senate leadership opposing Amendment 2239 to S. 1582, which proposes an all-in annual percentage rate (APR) cap of 10% for credit cards. While this amendment claims to protect consumers, it will have unintended consequences that harm the very people it seeks to safeguard.
Research shows that government-imposed credit cards price controls, such as APR caps, lead to reduced access to credit, particularly for high-risk borrowers. A 10% APR cap would make it far more difficult for millions of consumers to access credit cards, pushing them toward alternative sources of credit that are far more expensive and less regulated, such as payday lenders, pawn shops, and even illegal loan sharks.
Credit cards are a crucial pathway for consumers, especially those who are “credit invisible,” to build a credit history and improve financial inclusion. More consumers are using credit cards to improve their credit scores, and institutions have innovated to make credit more accessible, including for subprime borrowers.
Credit card issuers have also introduced underwriting methods that help consumers manage debt and improve their credit. This has led to fewer delinquencies and a reduction in credit card balances in recent years. These efforts are supported by consumer protections mandated by such laws as the Truth in Lending Act and the Fair Credit Reporting Act, which ensure that credit card companies operate transparently and responsibly.
In short, while rate caps might seem like an easy fix, they are a blunt instrument that disrupts credit markets, reduces competition, and ultimately harms consumers. The 10% APR cap proposed by Amendment 2239 would stifle access to credit for millions of consumers and push them toward far more costly and unregulated alternatives.
AFSA’s goal is to make credit more affordable and inclusive and urges the majority and minority leaders to reconsider this amendment and adopt policies that promote sustainable credit access and true financial inclusion.
AFSA Continues to Oppose Rate Caps
May 30, 2025
Last week, AFSA, along with other associations, signed a letter to U.S. Senate leadership opposing Amendment 2239 to S. 1582, which proposes an all-in annual percentage rate (APR) cap of 10% for credit cards. While this amendment claims … Read the rest
AFSA Webinar | Using Effective Digital Engagement to Cut Call Volume, Increase Self-Service & Get Paid Faster
May 27, 2025
Join us Thursday, June 5th at 2:00 p.m. EST
Auto finance portals are failing to meet customer expectations— according to a recent study, only 2% of industry websites and mobile apps provide a truly valuable digital experience. When portals
AFSA Expresses Concerns with Oregon’s Medical Debt Bill
May 27, 2025
AFSA’s State Government Affairs team submitted a comment letter to the Oregon House Committee on Behavioral Health and Health Care regarding SB 605, a bill that would significantly amend Oregon’s existing medical debt collection statutes.… Read the rest
Improved Q1 Business Conditions
May 23, 2025
AFSA Member Companies’ assessment of the current and prospective business environment remained positive on balance in the first quarter of 2025 according to the results of AFSA’s Q1 Consumer Credit Conditions Index Survey (C3 Survey). … Read the rest
Industry Expertise | The Future of Dealer Commercial Lending: Transforming Challenges into Growth
May 19, 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
Industry Expertise | Build vs. Buy: Making the Right Customer Portal Decision
May 19, 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
AFSA Concerns on ELT
May 16, 2025
AFSA’s State Government Affairs team submitted a comment letter to Service Oklahoma regarding the upcoming implementation of the state’s mandatory electronic lien and title (ELT) program, scheduled to begin July 1, 2025. AFSA and the … Read the rest
AFSA Testified on DIDMCA in RI
May 16, 2025
On April 24th AFSA Senior Vice President Danielle Arlowe testified in person before a Rhode Island committee hearing in opposition to H 6055. This bill would opt-out the state from the Depository Institutions Deregulation and Monetary… Read the rest
A Busy Week in Deregulation
May 16, 2025
This week, AFSA responded to the Office of Management and Budget (OMB) Request for Information on Deregulation. This request invited the public to identify regulations that should be rescinded along with justifications for doing so. … Read the rest
This Thursday | AFSA Webinar | Usage-Based Models: Reinventing Auto & Equipment Finance
May 13, 2025
In today’s competitive financial landscape, staying ahead requires more than just traditional approaches to asset finance. When it comes to money at work between lenders and borrowers, usage-based financing is transforming auto and equipment… Read the rest