This week, CEOs from some of the largest U.S. banks provided testimony before the House Financial Services and Senate Banking Committees regarding several issues, including a proposal from Senator Jack Reed (D-RI) to expand the Military Lending Act rate cap to all consumers. Several of the CEOs cautioned that while they supported the principle of the legislation, there is a need to ensure that it does not constrain regulated consumer credit.
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AFSA has previously highlighted independent, academic research that shows that the imposition of a 36% all-in rate cap in 2021 reduced the number of loans to subprime borrowers in Illinois by 36%. The number of loans to deep subprime borrowers saw an even more significant reduction by 57%. This research emphasizes the importance of a robust and competitive market for small-dollar credit, which bigger banks cannot always provide. Expanding the 36% all-in rate cap would have a disastrous effect on millions of Americans seeking reliable options for their credit needs, forcing them to borrow a higher amount, locking them into a longer repayment period, and resulting in overall higher costs to the consumers.
AFSA member companies continue to provide access to credit to Americans of all backgrounds and economic standing, filling an important role in the consumer lending market. Hardworking Americans faced with unexpected costs rely on cost-effective credit products so that they are not trapped in an endless cycle of debt. Current all-in rate cap proposals would push traditional installment lenders who provide safe and affordable consumer credit from the market, leaving consumers vulnerable.
Senate Hearing Highlights Rate Cap Concerns
Sep 23, 2022
This week, CEOs from some of the largest U.S. banks provided testimony before the House Financial Services and Senate Banking Committees regarding several issues, including a proposal from Senator Jack Reed (D-RI) to expand the Military… Read the rest
How to Delight Your Dealer and Fund Indirect Loans Faster
Sep 20, 2022
Join us on October 6, 2022 at 1:00 p.m. ET for How to Delight Your Dealer and Fund Indirect Loans Faster, presented by Lightico.
Auto financial services companies are eager to fund deals faster and increase applications. Increasingly, technological… Read the rest
Bipartisan Agreement: ILCs Crucial
Sep 15, 2022
A bipartisan group of Senators sent a letter today expressing their support for industrial loan company (ILC) charters to Martin J. Gruenberg, acting chair of the Federal Deposit Insurance Corporation (FDIC). Led by Senators Mitt Romney… Read the rest
AFSA Pushes Back on FTC
Sep 14, 2022
On September 12 AFSA submitted a comment letter on the Federal Trade Commission (FTC) proposed Motor Vehicle Dealers Trade Regulation Rule. The Consumer Bankers Association (CBA) also joined the letter.
The Rule designates a variety of … Read the rest
2022 Virtual Fixed Income Investors Summit
Sep 12, 2022
The AFSA Fixed Income Investor Summit returns virtually for 2022.
Join finance industry executives, debt issuers, and investors virtually on Wednesday, December 14 for a fast-paced, single-day conference featuring industry updates,… Read the rest
11th Circuit Agrees with AFSA on Hunstein
Sep 08, 2022
By a vote of 8 to 4, judges in the 11th Circuit Court of Appeals held that the plaintiff in Hunstein v. Preferred Collection and Management Servs., Inc., failed to allege a concrete harm that would provide Article III standing to pursue claims… Read the rest
LISTEN | End-of-Summer Federal Update
Sep 08, 2022
Join the AFSA Extra Credit Podcast and the Federal Government Affairs team in a policy discussion and a look at the mid-term elections.
Michael Grimes walks through the legislation Congress must pass before heading out for the October recess,… Read the rest
Arguments Scheduled in Davidson
Sep 07, 2022
The U.S. Circuit Court of Appeals for the Fourth Circuit has scheduled oral arguments in Davidson v. UACC for October 26 at 9:30 am ET. The case addresses whether financing Guaranteed Asset Protection (GAP) brought a vehicle contract under… Read the rest
CFPB Director Rohit Chopra to Address AFSA Annual Meeting
Sep 06, 2022
AFSA is pleased to announce that Rohit Chopra, Director of the Consumer Financial Protection Bureau (CFPB) will address the 2022 AFSA Annual Meeting held at The Breakers in Palm Beach, FL from October 23-26.
Director Chopra was confirmed… Read the rest
September Featured Business Partner | Allied Solutions
Sep 06, 2022
The featured AFSA Business Partner for September is Allied Solutions. We asked them a few questions about the value of AFSA membership and some of the opportunities or challenges they face in 2022. Learn more at alliedsolutions.net.
What … Read the rest