Don’t Confuse Innovative Service with Irresponsible Payday Practices
Oct 31, 2019
Bloomberg recently highlighted the online “payday lending” marketplace. While Bloomberg portrayed the type of loans as “installment loans,” they are a business model that leverages today’s online consumer culture that is very different from traditional installment lending.
AFSA Comments on Texas Finance Code
Oct 30, 2019
AFSA’s State Government Affairs (SGA) team this week sent a comment letter to Texas Attorney General Ken Paxton in response to an opinion request from a state representative regarding the Texas Finance code. In the request, the representative asked the attorney general if a “credit services organization”, which is the state’s definition of payday and vehicle title lender, could extend forms of consumer credit beyond those explicitly authorized – namely deferred presentment or motor vehicle title loans. In the letter, AFSA strongly urged the attorney general to uphold the current interpretation of the Texas Finance Code, which maintains that credit services organizations should only be allowed to extend the forms of consumer credit that are explicitly authorized. Unlike credit services organizations, AFSA members are regulated and licensed by the Texas Office of Consumer Credit Commissioner. Altering the existing interpretation of the Texas Finance Code by allowing unregulated and unlicensed credit services organizations to extend other forms of consumer credit will open the door to an increase in predatory lending practices in Texas.
AFSA Supports NHTSA Drive to Modernize
Oct 29, 2019
The American Financial Services Association yesterday submitted a comment letter to the National Highway Traffic Safety Administration (NHTSA) voicing its strong support for a final rule allowing state adoption of electronic odometer disclosure systems. Odometer disclosure statements are tied to vehicle sale and transfer documents. State regulations have in the past required “wet” (i.e. handwritten) signatures as a means of preventing odometer fraud. Now, state policymakers will have the opportunity to put in place more flexible rules that allow for an electronic signature.
AFSA Announces New Board Leadership
Oct 24, 2019
The American Financial Services Association (AFSA) on yesterday announced that its Board of Directors elected a new chairman, chair-elect and vice chairman-treasurer for the next 12 months. The appointments were made at the close of the 2019 AFSA Annual Meeting in Nashville, Tenn.
LISTEN | Episode 2: Rex Ellison, President & CEO, Republic Finance & AFSAEF Chair
Oct 23, 2019
In this episode of the AFSA Extra Credit Podcast, we speak to Rex Ellison, President & CEO of Republic Finance and Chairman of the AFSA Education Foundation.
AFSA Comments on HUD Disparate Impact Proposed Rule
Oct 23, 2019
AFSA last week commented on the Department of Housing and Urban Development’s (HUD) proposed rule amending its interpretation of the Fair Housing Act’s disparate impact standards. Specifically, HUDs proposed rule changes move to align the standard with the Supreme Court’s decision in Inclusive Communities.
Two Consumer Credit Executives Recognized for Distinguished Service
Oct 22, 2019
Two consumer-credit industry executives were honored with the 2019 American Financial Services Association (AFSA) Distinguished Service Award (DSA) today at AFSA’s 2019 Annual Meeting in Nashville.
LISTEN | Episode 1 of the AFSA Extra Credit Podcast
Oct 18, 2019
FASB Approves Delay of CECL
Oct 17, 2019
The Financial Accounting Standards Board yesterday unanimously delayed implementation of the Current Expected Credit Loss accounting standard until 2023 for most financial institutions. Banks that file with the Securities and Exchange Commission, except those defined as “smaller reporting companies” will still have to convert to CECL on January 1, 2020. All other institutions will have until 2023 to convert.
Consumer Advocates, Industry Agree: CECL Should be Delayed
Oct 16, 2019
For months, the American Financial Services Association and other financial-services industry partners have urged the Financial Accounting Standards Board (FASB) to delay implementation of the new Current Expected Credit Loss (CECL) standard until its potential effect is studied. The new standard would require financial institutions to reserve for the lifetime expected losses of a loan at origination. Now, the Center for Responsible Lending (CRL), a consumer advocacy organization, has indicated it agrees with those pressing for a delay.