WASHINGTON–(BUSINESS WIRE) – Bill Himpler, President and CEO of the American Financial Services Association (AFSA), speaking before the Senate Banking, Housing and Urban Development Committee today in a hearing titled “Protecting Americans from Debt by Extending the 36% Interest Rate Cap of the military on “off all.”
In his testimony, Himpler described the important role traditional installment lenders play in their communities by offering responsible small loans in dollars to hardworking Americans. He also warned of the disastrous impact of a 36% interest rate cap on Americans’ ability to manage their own financial lives.
“If someone is underserved, or has imperfect credit, or does not have access to a credit they need, it is not a consumer protection victory. It is a loss of civil rights, ”said Himpler in his testimony. “All consumers deserve access to safe and reliable credit.”
Himpler highlighted recent studies confirming that if a national interest rate cap were introduced, millions of Americans would be cut off from reliable small dollar loans and the growing consensus that interest caps harm consumers, especially those with subprime loans.
“Almost one in three Americans does not have top or excellent credit. 53 million adults have thin or no credit files, ”Hilmpler told the committee. “If reputable small dollar lenders cannot serve underpaid or inferior consumers, consumers must turn to unregulated or illegal predatory lenders.”
You can read AFSA’s oral testimony here; the written certificate with additional data points can be viewed here.
The American Financial Services Association (AFSA), headquartered in Washington, DC, is the national consumer credit trade association committed to protecting access to credit and consumer choice. Its 450 members include traditional installment lenders, vehicle finance companies, consumer and commercial finance companies, mortgage lenders and service providers, payment card issuers, industrial banks, and industrial suppliers. More information is available at www.afsaonline.org.
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