AFSA joined seven other leading financial services trade associations on a letter to Sen. Josh Hawley (R-MO) expressing concern about the Capping Credit Card Interest Rates Act (S.2760), which would cap credit cards’ APR at 18%.
The letter signed by associations representing banks, credit unions, think tanks and non-bank financial institutions noted that the bill if signed into law would severely restrict credit access for Americans of all economic tiers, but especially those in the subprime space. The arbitrary 18% APR cap would also include fees and add-on products, further restricting financial institutions’ ability to serve their customers with products that help them meet their financial goals.
Interest rates allow financial institutions to price credit based on risk expanding availability. The APR includes the cost of underwriting, compliance, IT, and administration costs, as well as the cost of recovering losses.
The trades say the proposal would force consumers to seek credit through less secure, often predatory products. The Consumer Financial Protection Bureau’s (CFPB) recent rule arbitrarily capping credit card late fees compounds this issue, forcing even more Americans out of safe, reliable credit products.
The signatories of the letter concluded by reiterating a shared commitment to reducing consumer debt while simultaneously protecting access: “This goal can be achieved without creating barriers for accessing safe and affordable credit products by pushing consumers with troubled credit histories and those on the financial fringe outside of highly regulated financial products to far more costly and less regulated lenders.”
Joint Trades Sound Alarm
Sep 20, 2023
AFSA joined seven other leading financial services trade associations on a letter to Sen. Josh Hawley (R-MO) expressing concern about the Capping Credit Card Interest Rates Act (S.2760), which would cap credit cards’ APR at 18%.
The letter… Read the rest
One Revolution: Chris Waddell
Sep 19, 2023
Join us at the 2023 Annual Meeting in Salt Lake City to be motivated and inspired by Chris Waddell’s life journey and learn how you can embrace his hard-earned wisdom for yourself, your team, and business for the challenges ahead.
Get ready for… Read the rest
News from our Members | How Title Release Impacts Auto Retail
Sep 18, 2023
How Vehicle Title Release Impacts Auto Retailing Overall
Cox Automotive
Routine title management is anything but: Paper vs electronic and release to third parties for resale, wholesale and insured total loss bring much complexity to loan
Local SEO: The Missing Piece To Your Marketing Success
Sep 15, 2023
Join us on September 21, 2023 at 2:00 p.m. ET for Local SEO: The Missing Piece To Your Marketing Success, presented by Amsive.
Join Bambi Frazier, Sr. Manager of Local SEO and Content at Amsive, to discuss why inflation rates and interest rates… Read the rest
Save the Date | 2024 Vehicle Finance Conference & Expo
Sep 14, 2023
Influential Speakers. Gain insights and inspiration from incredible speakers, including our keynote: Gian Paul Gonzalez, the New Jersey teacher who inspired the New York Giants before the 2012 Super Bowl … and such Fortune 500 companies… Read the rest
Another Misguided APR Bill
Sep 11, 2023
Media reports indicate that Sen. Josh Hawley (R-MO) will introduce legislation that would cap consumer credit card annual interest percentage rates (APR) at 18 percent. This is a misguided effort at populist politics that will harm the very… Read the rest
TODAY | Hotel Room Cut Off for 2023 Annual Meeting
Sep 08, 2023
Did you reserve your room yet?
If not, you’re running out of time. The deadline for hotel reservations at AFSA’s special rate for the 2023 Annual Meeting is TODAY, September 8th!
The rooms won’t last. For more information… Read the rest
Groundhog Day for a Rate Cap
Sep 07, 2023
This week, several Senators Durbin (D-IL), Merkley (D-OR), Blumenthal (D-CT) and Whitehouse (D-RI) introduced legislation to impose a 36% Annual Percent Rate cap on consumer loans. The bill, which has no Republican co-sponsors, remains… Read the rest
Elevate in Salt Lake | Decoding AI Bias
Sep 05, 2023
AFSA is pleased to announce Ron Guerrier as a featured speaker at its Annual Meeting in Salt Lake City.
Artificial Intelligence and machine learning play an increasing role in our lives: from setting our online newsfeeds, social engagement,… Read the rest
Business Partner Webinar | Applications for AI & ML in Lending: Four Practical Use Cases
Sep 05, 2023
Join Steve Murphy, Director of Marketing, and Roger Portela, Senior Director Product Development, Thursday, September 14th at 2:00 p.m. ET, as they share PayNearMe’s thoughts on the application of AI and ML in lending.
Much has been… Read the rest