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AFSA to Congress: Close Debt Settlement Loopholes

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Last week, AFSA joined several with other financial trade groups to send a letter to the Senate Commerce and House Energy and Commerce Committees highlighting our growing concern about the questionable practices in the debt settlement industry. Too many debt settlement companies are engaging in deceptive and harmful practices that mislead millions of Americans into financial jeopardy with false promises of a quick way to negotiate existing debt at a fraction of the cost.
In some cases the companies use a “strategic default” model where consumers are told to stop paying their monthly bills and intentionally default on their loans and instead make monthly payments into an account operated by the debt settlement company. This can lead to many consumers failing to settle any debt at all.

With debt settlement companies expanding their efforts to target more consumers, AFSA and other trade associations believe it is crucial to modernize federal oversight of the Telemarketing Sales Rule (TSR). The TSR currently restricts debt settlement firms from charging upfront fees, requires certain disclosures about their services, and forbids them from overpromising results. However, there are still gaps in the rule that allow problematic practices to continue. AFSA urged the committees to consider enacting legislation to establish additional safeguards to codify key protections found in the TSR and establish additional safeguards to ensure consumers are protected.
AFSA is continuing efforts to meet with Members of Congress to push for action to limit these deceptive debt settlement practices. Also signing the letter: American Bankers Association, America’s Credit Unions, Consumer Bankers Association, National Bankers Association, Payments Leadership Council, ACA International

AFSA to Congress: Close Debt Settlement Loopholes
Mar 04, 2026

Last week, AFSA joined several with other financial trade groups to send a letter to the Senate Commerce and House Energy and Commerce Committees highlighting our growing concern about the questionable practices in the debt settlement industry.
… Read the rest

AFSA Webinar | Trust, but Verify: Why Title & Lien Validation is the Missing Link in Lender Fraud Prevention
Mar 04, 2026

BUSINESS PARTNER WEBINAR
TRUST, BUT VERIFY: WHY TITLE & LIEN VALIDATION IS THE MISSING LINK IN LENDER FRAUD PREVENTION
APRIL 9, 2026 AT 2:00 P.M. ET

Lenders today verify income, identity, employment, and even driver’s licenses — yet the… Read the rest

Credit Where Credit Is Due: Celebrating Women in Consumer Finance
Mar 03, 2026

March is Women’s History Month, when we celebrate the women who’ve shaped our industry, as well as our communities and our country.  

  • Abigail Adams is credited with being the first woman investor. In addition to making
… Read the rest

The Financial Fraud Congress Cannot Afford to Miss
Feb 27, 2026

AFSA applauds the House Financial Services Committee for holding a hearing on Thursday, March 5, titled “Fighting Fraud on the Front Lines: Challenges and Opportunities for Financial Institutions.” This hearing is an opportunity for financial… Read the rest

Perspective on Auto Loan Performance
Feb 25, 2026

With concern about vehicle loan delinquencies and repossessions at a high level in some corners of Capitol Hill, the latest edition of the Federal Reserve Bank of New York’s Household Debt and Credit Report sheds some new light on the state … Read the rest

AFSA Backs Rate Cap Boost
Feb 19, 2026

Last week, AFSA’s State Government Affairs team submitted a comment letter in support for WV SB 702. 

SB 702 is an important step toward modernizing West Virginia’s consumer credit laws by replacing an outdated tiered rate structure… Read the rest

Another Rate Cap Bill
Feb 19, 2026

U.S. Sens. Sheldon Whitehouse (D-RI), Elizabeth Warren (D-MA), Jack Reed (D-RI), and Jeff Merkeley (D-OR)  introduced legislationthat would grant states the ability to limit consumer loan interest rates. The Empowering States’ … Read the rest

AFSA Engaged on Vehicle Finance Interest Tax Deduction
Feb 19, 2026

AFSA continues to work on issues relating to the implementation of the 2025 vehicle finance interest tax deduction. The deduction was part of the 2025 reconciliation package, and was designed to “deliver on presidential priorities to provide… Read the rest

The CFPB’s Exorbitant Price Tag
Feb 19, 2026

Needlessly burdensome and even antagonistic regulation is often cited as a source of inefficiency, driving up costs for the consumer finance industry and ultimately for consumers.

A new report from the Council of Economic Advisors (CEA)… Read the rest

New Date | AFSA Webinar | From Risk to Vehicle Recovery: One Connected Ecosystem
Feb 18, 2026

From Risk to Vehicle Recovery: One Connected Ecosystem
Thursday, May 7, 2026 at 2:00 p.m. ET

Auto lenders are navigating rising delinquencies, increased charge-offs, and greater pressure to recover assets faster while maintaining compliance.… Read the rest

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