FL: Advocacy Letter to Florida Governor DeSantis in Support of House Bill 1267

The Honorable Ron DeSantis
Governor of Florida
State of Florida
The Capitol
400 S. Monroe St.
Tallahassee, FL 32399-0001

Re: American Fintech Council Support for HB 1267-Consumer Finance Loans by Representative Fernandez-Barquin

Dear Governor DeSantis:

On behalf of our members, the American Fintech Council (AFC) writes in support of HB 1267-Consumer Finance Loans, sponsored by Representative Fernandez-Barquin.  This bill will increase sustainable access to credit for Florida consumers and we recommend that you sign this bill into law.

AFC’s mission is to promote an innovative, transparent, inclusive, and customer-centric financial system by supporting the responsible growth of lending, fostering innovation in financial technology (Fintech), and encouraging sound public policy. AFC members are at the forefront of fostering competition in consumer finance and pioneering ways to better serve underserved consumer segments and geographies. AFC has publicly supported 36% rate caps at state and federal levels, which is a key component of our advocacy and of addressing responsible lending. Our members are also lowering the cost of financial transactions, allowing them to help meet demand for high-quality, affordable financial products.  

AFC supports HB 1267 because it promotes stronger financial stability for Florida families.  The bill would establish a 36% annual percentage rate (APR) cap on personal consumer loans across the state. At this time, Florida ranks 18th in “credit insecurity” nationally, and 4th in the number of counties ranked “credit insecure”. Out of Florida’s 67 counties, 32% are considered credit-insecure, including communities with high concentrations of residents with no or low access to competitive credit choices. In addition, 45% of Florida counties are rated as “Credit-At-Risk” or “Credit-Insecure.”

A consumer loan rate cap up to 36% APR will enable licensed and regulated Florida lenders the ability to offer access to safe and affordable consumer loans. The 36% APR rate cap has a long history in consumer finance, dating back to the 1913 efforts by the Russell Sage Foundation to ensure that lower income citizens were able to access credit when they needed it. Today, without access to safe affordable loans designed as a pathway out of debt, Florida residents are left with less safe, predatory, or unregulated sources.

The 36% APR rate caps have been successfully established in 17 states plus the District of Columbia. By making the Florida maximum allowable rate competitive with those in other states, Florida will attract more lenders who will create safe, transparent, and affordable choices for families in need. AFC and its members therefore support the enactment of HB 1267 which benefits Florida residents, businesses, and the economy alike.  We urge your office to sign HB 1267 into law and thank you for your consideration on this matter.

Sincerely,

Phil Goldfeder
CEO, American Fintech Council