HI: Testimony in Opposition of HI HB 1048

TO: Hawaii House Consumer Protection & Commerce committee
FROM: Ashley Urisman, Director, State Government Affairs, American Fintech Council (AFC)
DATE: February 4, 2025
SUBJECT: House Bill 1048

Position: Oppose.

Testimony:

Good afternoon.

My name is Ashley Urisman, and I am the Director of State Government Affairs for the American Fintech Council (AFC). Thanks to Chair Matayoshi and the House Consumer Protection & Commerce Committee for allowing me to testify this in opposition to HB 1048.

AFC is the premier trade association representing the leading financial technology (Fintech) companies. Our mission at AFC is to promote a transparent, inclusive, and customer-centric financial system. We support responsible innovation in financial services and encourage sound public policy.

AFC opposes this bill because it promulgates an unconventional definition of an “installment lender” that does not align with the common understanding that a lender is the entity that originates the loan. Many Fintech companies are not lenders but rather help connect consumers with credit products. Also, Hawaii already has robust borrower protections in place for consumer installment loans. These include a 36% interest rate cap, and a limit on the size of the installment loans, making the licensure requirement in HB 1048 unnecessary from a consumer protection standpoint. Fintech companies already must register with the proper Hawaii authority to conduct business in the state. Requiring Fintech companies obtain a license will unnecessarily burden Hawaii’s banking regulator and inevitably force otherwise responsible companies shut out of the market, limiting options for the Hawaii residents who may need them.

Thank you, and I am happy to answer any questions you may have

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