A new post on the Federal Reserve Bank of New York’s Liberty Street Economics blog acknowledges an old idea: usury limits, otherwise known as interest rate caps, don’t work. The piece provides some interesting historical background on usury regulations, noting that “their recent resurgence on the consumer side was triggered by payday lenders’ entry into the small dollar loan market in the mid-1990s.”
The authors also lay out the textbook economic theory on interest rate ceilings and go on to describe a study they released late last year on the impact of caps that were enacted in Illinois, South Dakota, and North Dakota over the last decade. AFSA summarized that research here.
Reiterating our conclusion, the staff report demonstrates that if the goal of rate caps is to limit credit access to those who have the fewest financial options available to them while doing nothing to improve credit outcomes, then mission accomplished.
NY Fed on Rate Caps
Jun 04, 2026
A new post on the Federal Reserve Bank of New York’s Liberty Street Economics blog acknowledges an old idea: usury limits, otherwise known as interest rate caps, don’t work. The piece provides some interesting historical background on usury… Read the rest
Industry Expertise | The Exposure Gap Your Bank Partnership Agreement Just Created
Jun 03, 2026
“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 Webinar | Why AI Implementations Fail, and How Asset Finance Lenders Can Get It Right
Jun 03, 2026
BUSINESS PARTNER WEBINAR
Why AI Implementations Fail, and How Asset Finance Lenders Can Get It Right
June 18, 2026 at 2:00 p.m. ET
Up to 95% of AI pilots fail to scale, but it doesn’t have to be that way. For asset finance lenders, the challenge… Read the rest
Registration is OPEN for the 2026 AFSA Annual Meeting
Jun 02, 2026
Reading the Room: What Voters Are Really Saying About the Economy and the Road to the Midterms
Numbers don’t lie. But they do require interpretation and AFSA’s Annual Meeting has two of the best in the business to help us do just that.
Two… Read the rest
Well-Intentioned, but Not Well-Executed
May 28, 2026
AFSA has submitted a comment letter raising concerns with SB 3777, noting that while well-intentioned, the bill relies on a disparate impact framework that could create significant unintended consequences for the consumer credit system.… Read the rest
New EO on Undocumented Customer Accounts
May 28, 2026
On May 19, 2026, the White House issued Executive Order 14406 addressing issues relating to lending and banking for customers lacking legal residency and work authorization. The order explains that national security and public safety… Read the rest
FDIC Says Yes to Stellantis
May 14, 2026
The recent FDIC approval of Stellantis Bank USA marks a meaningful milestone for the vehicle finance industry, and the benefits extend well beyond one automaker’s balance sheet.
This approval expands consumer access to financing… Read the rest
New Voice for Consumer Finance
May 13, 2026
AFSA is pleased to be supporting the inaugural conference of the newly launched Institute for Consumer Financial Choice (ICFC) at George Mason University’s Antonin Scalia Law School. Entitled, “The Future of Consumer Financial Protection,”… Read the rest
Industry Expertise | What Lenders Don’t See in the Dealership Payoff Process
May 13, 2026
“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 | Seeing the Full Picture in Auto Finance
May 11, 2026
“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