When it comes to laws and regulations around consumer credit, some policymakers, as the saying goes, seem intent on killing a fly by burning down the house. Sure, you address the issue, but consider all that ancillary damage.
That’s the point made in a recent op-ed by Jared Kaplan, CEO of OppFi, in the American Banker. As Kaplan notes, small dollar lending is a “vital lifeline” for more than 60 million American consumers. However, rate caps often harm the consumers they’re intended to help.
Kaplan also points out – rightly – that these proposals are being made with a flawed understanding of the consumer credit marketplace. Rather than hinder consumers’ access to even fewer credit options, he argues for broader adoption of the commonsense attributes of traditional installment loans: testing the consumers ability to repay, reporting payment history to credit bureaus, having fully-amortized payments, and doing away with balloon payments and prepayment penalties.
Now there’s a radical regulatory proposal: protecting consumers by allowing the consumer credit marketplace to serve them.
When it comes to laws and regulations around consumer credit, some policymakers, as the saying goes, seem intent on killing a fly by burning down the house. Sure, you address the issue, but consider all that ancillary damage.
That’s the point… Read the rest
The automotive industry has faced its share of obstacles and uncertainty over the last 12 months, from the pandemic itself, the rush to implement digital retailing solutions and accommodating the consumer through new and redefined dealership… Read the rest
Last week, the House Financial Services Subcommittee on Consumer Protection and Financial Institutions held a hearing with several advocacy groups and coalitions to examine policy options to help consumers through the pandemic. Several… Read the rest
AFSA is pleased to welcome Charlie Gasparino, Senior Correspondent with Fox Business News and one of America’s most storied business reporters, as the opening keynote speaker for the LIVE 2021 Independents Conference & Expo.
As… Read the rest
Washington, D.C. may be operating under one political party at both ends of Pennsylvania Avenue, but that doesn’t mean only one side of public policy should be discussed.
Unfortunately, that’s exactly what happened on March 12, when the Bank… Read the rest
Take a look at AFSA’s one sheet on the value of auto dealership financing.
![](https://afsaonline.org/wp-content/uploads/2021/03/AFSA-Indirect-Auto-Primer1-791x1024.png)
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An article in the Bay St. Banner takes a page torn straight from the consumer “advocate” playbook: telling half of the story.
The article details various legislative efforts around the country to implement restrictive, anti-consumer interest-rate… Read the rest
Leaders in both parties of Congress reached an agreement to extend the Paycheck Protection Program (PPP) for an additional two months. House Small Business Chair Nydia Velazquez (D-NY) and Ranking Member Blaine Luetkemeyer (R-MO) came … Read the rest
AFSA strongly supports H.R. 1491, the “Fair Debt Collection Practices for Servicemembers Act,” and wrote urging the House of Representatives to pass this legislation as quickly as possible.
The Fair Debt Collection Practices for Servicemembers… Read the rest
The American Financial Services Association (AFSA) submitted an amicus brief on March 4 before the United States Court of Appeals for the First Circuit in Consumer Data Industry Association (CDIA) v. Frey. The case was brought by CDIA against… Read the rest