On June 2, the Illinois Financial Services Association and AFSA jointly filed a lawsuit against the State of Illinois and the Illinois Department of Financial and Professional Regulation (DFPR) in the Circuit Court of Cook County over SB 1792 / Public Act 101-0658, the “Predatory Loan Prevention Act,” which took effect on March 23. Although the act’s stated purpose is to protect consumers, its provisions will leave Illinois consumers worse off by limiting the availability of safe and affordable forms of credit.
The act also includes a requirement that Consumer Installment Loan Act (CILA) licensees report loan information to a state database; however, the company that manages the existing database, Veritec Solutions, does not currently have the technological capacity to accommodate licensees reporting to the system as required by the new law.
The DFPR stated it would not enforce the reporting requirements until the database is ready, but the law independently requires industry to report, putting AFSA members in a circle of impossibility. The lawsuit seeks to prohibit the state or DFPR from implementing the database reporting requirements in the act and any other relief that the court deems fair.
In addition to the database reporting requirements, the act’s imposition of a 36% rate cap using the military annual percentage rate (MAPR) on all credit extended—including traditional installment loans and vehicle retail installment contracts—will greatly reduce consumers’ ability to access safe and affordable forms of credit. AFSA estimates that the new MAPR will exclude approximately 1/3 of Illinois consumers from small dollar credit. AFSA previously sent a letter to the governor requesting that he veto the bill.
On June 2, the Illinois Financial Services Association and AFSA jointly filed a lawsuit against the State of Illinois and the Illinois Department of Financial and Professional Regulation (DFPR) in the Circuit Court of Cook County … Read the rest
This week, AFSA and six other trade associations joined together in a brief asking that the 11th Circuit Court of Appeals review a decision made by a panel of the court’s judges. The case, Hunstein v. Preferred Collection and Management Servs.,… Read the rest
Last week, CEOs from the largest U.S. banks testified before the Senate Banking and House Financial Services Committees about several topics, including proposals for a federal 36% rate cap on all loans.
In the Senate Banking Committee hearing,… Read the rest
The session recordings from the 2021 Independents Conference & Expo are now available to registered attendees. Listen to the keynote, general sessions and breakouts, right from the AFSA LIVE(stream) page.
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The featured Premier Business Partner for June is FIS.
FIS™ is the world’s largest global provider dedicated to financial technology solutions. FIS empowers the financial world with software, services, consulting and outsourcing… Read the rest
Rather than facing a crushing wave of defaults, many banks and credit unions are experiencing above average deposits and flush reserves. Lenders who expected to hunker down and mitigate losses find themselves instead in a race to spur loan… Read the rest
AFSA was pleased to welcome members and friends back for the 2021 Independents Conference & Expo. Virtual attendees were also able to tune in to the conference session via the AFSA LIVE(stream) sponsored by REPAY.
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In this episode of the AFSA Extra Credit Podcast we talk with Mark Decker, Director of Business Systems Analysis with the Auto Group at FIS.
As we come out of the pandemic, many businesses may be thinking of upcoming projects that were either … Read the rest
The U.S. Department of the Treasury and the Internal Revenue Service (IRS) announced this week the first monthly payments of the newly expanded Child Tax Credit (CTC) is set to begin in July.
As part of the March stimulus package signed by President… Read the rest
This week, Senators Kevin Cramer (R-ND) and Mark Warner (D-VA) introduced the Securing and Enabling Commerce Using Remote and Electronic (SECURE) Notarization Act. The bipartisan would expand the usage of Remote Online Notarizations … Read the rest
