Today, AFSA’s State Government Affairs Team sent a letter to the Iowa House Ways and Means Committee expressing concerns with HF 893, which would change the maximum rate for consumer loans in Iowa to a rate cap based on the federal military annual percentage rate (MAPR). Unlike the definition of annual percentage rate (APR) in the federal Truth in Lending Act (TILA), MAPR includes the cost of voluntary goods, services, or insurance that are unrelated to the cost of credit and are not comparable across credit products. The bill would undermine TILA and affect the ability of creditors to offer credit to Iowa consumers. Numerous states have recognized the importance of keeping state law consistent with TILA and rejected MAPR rate caps, and only two states have enacted such proposals into law.
In the letter, AFSA argues that, while Iowa’s rate structure for small loans is in need for modernization, MAPR is not the right solution for Iowa. The MAPR would severely limit the ability of licensed traditional installment lenders to offer consumers safe and affordable forms of credit. The current rate cap of 21 percent excludes large swaths of Iowa consumers from accessing traditional installment loans (TILs), which are widely recognized as safe alternatives to payday loans by government officials on the state and federal level. TILs provide consumers the ability to borrow money safely and improve their credit scores.
This letter, along with SGA’s other recent letters, can be found on the direct advocacy section of AFSA’s website. It can also be found on AFSA’s APR resources page.
AFSA Comments on IA Rate Cap Bill
May 11, 2021
Today, AFSA’s State Government Affairs Team sent a letter to the Iowa House Ways and Means Committee expressing concerns with HF 893, which would change the maximum rate for consumer loans in Iowa to a rate cap based on the federal military… Read the rest
Five Questions with AFSA Business Partner RSM
May 10, 2021
AFSA’s featured Business Partner for March is RSM. We asked them a few questions about the value of their business partner membership and the issues they’re facing. Learn more at rsmus.com.
What are your financial services clients telling… Read the rest
LISTEN | Pitching Your Story the Right Way
May 06, 2021
In this episode of the AFSA Extra Credit Podcast we talk with Jackie Charniga, the Finance and Insurance Reporter with Automotive News. We chat about some of the things that Jackie looks for in a story and some of the things that companies should… Read the rest
Strategies for Responsible Business
May 06, 2021
Whether branded as “Environmental, Social & Governance” or “Social Responsibility,” business responsibility is no longer a “Fortune 500” concern or simply about climate change. Any business – public or private – that must account… Read the rest
May Featured Premier Business Partner: RSM
May 03, 2021
The featured Premier Business Partner for May is RSM.
RSM US LLP is the leading provider of audit, tax and consulting services focused on the middle market, with 9,000 people in 90 offices nationwide. Our full range of services help specialty… Read the rest
AFSA Comments on CA Commercial Financing Disclosure Rules
Apr 29, 2021
AFSA’s State Government Affairs (SGA) team recently sent a letter to the California Department of Financial Protection and Innovation (DFPI) to provide comments on the department’s recently proposed rules for commercial financing … Read the rest
The CFPB Debt Collection Rule: Compliance Considerations
Apr 29, 2021
AFSA is pleased to announce that Carissa Robb, President & COO with Constant and Frank Veneziano, President with Robertson, Anschutz, Schneid, Crane & Partners, PLLC will join us at the 2021 Independents Conference & Expo to… Read the rest
Don’t Boil the Ocean: Three Steps to Faster Tech Implementations
Apr 26, 2021
Join us on Thursday, April 29 at 2:00 p.m. ET for Don’t Boil the Ocean: Three Steps to Faster Tech Implementations, presented by PayNearMe.
Digital transformation is only possible when lenders can dedicate the right resources to the… Read the rest
AFSA asks SBA for PPP Clarification
Apr 21, 2021
AFSA sent a letter to the Small Business Administration (SBA) on April 21. AFSA wrote, “Our letter focuses on PPP eligibility, specifically: (1) agreeing that all small businesses are eligible for PPP loans, and (2) asking that the SBA clarify… Read the rest
AFSA Applauds House Passage of Debt Collection Protections for Servicemembers
Apr 20, 2021
This week, the U.S. House of Representatives passed the “Fair Debt Collection for Servicemembers Act” (H.R. 1491), as part of a larger package of noncontroversial measures.
Authored by Rep. Madeleine Dean (D-PA), who serves on the the Financial… Read the rest