Today, ATR joined a coalition of conservative organizations in opposition to the implementation of a federally mandated cap on interest rates. The letter was addressed to the Senate Committee on Banking, Housing, and Urban Affairs to express the negative consequences this unnecessary government regulation will have on consumer loan products.
Senate Democrats are expected to announce the reintroduction of the misguided Veterans and Consumers Fair Credit Act. This bill, if enacted, will make it harder for Americans to access short-term loans. The interest rate cap in the bill would restrict access to lending because lenders will not be able to properly account for risk. This bad policy would also potentially hamper credit card rewards programs.
Congress should work to enact legislation that will enable greater consumer access to credit, not limit consumer credit options.
The full letter can be found here.