IA: AFC Letter to Governor Reynolds in Support of HF 2329

The Honorable Kim Reynolds
Governor
Iowa State Capitol
1007 E. Grand Ave.
Des Moines, IA 50319

Re: Support for House File 2329

Dear Governor Reynolds:  

On behalf of the American Fintech Council (AFC), I am writing to express our strong support for House File 2329 (HF 2329), which sets the interest rate cap on consumer credit in Iowa to 36%. We are happy to hear that HF 2329 was passed by the Iowa House on March 12th and by the Iowa Senate on April 7th, and kindly request that you sign the bill when it reaches your desk.

AFC is the premier trade association representing the largest financial technology (fintech) companies, including fintech lenders and their innovative bank partners. As a standards-based organization, our mission is to promote a transparent, inclusive, and customer-centric financial system by supporting responsible innovation in financial services and encouraging sound public policy. AFC members foster competition in consumer finance and pioneer products to better serve underserved consumers.

Responsible bank-fintech partnerships have democratized financial services and provided access to safe and affordable credit to families long forgotten by traditional financial institutions. Innovative financial services companies help consumers consolidate personal debt, pay off high-interest balances, and finance other personal projects. Responsible fintech companies can reach rural and other communities often left behind by legacy financial institutions. AFC members safely serve millions of Americans every day and we are proud to work with lawmakers to eliminate triple digit interest rates that put too many distressed families into debt traps.

AFC has long recognized the importance of developing a robust lending ecosystem for borrowers, especially those who live in historically underserved communities. The cornerstone of AFC’s policy agenda is support for a 36% interest rate cap for consumer credit products. These loans are both affordable to borrowers and give lenders the flexibility to support more customers in achieving their financial goals. By increasing Iowa’s allowable interest rate on consumer loans in Iowa, HF 2329 gives your constituents access to safe and affordable credit, and ultimately, financial empowerment. In fact, based on AFC’s analysis of its member companies, by increasing the interest rate to 36%, approximately 250,000 additional Iowans each year will have access to loans at responsible rates, representing approximately $300 million in additional available credit.

As consistently demonstrated through our members’ work, responsible bank-fintech partnerships can improve access to credit for borrowers and, in so doing, provide them with greater opportunities for maintaining their financial well-being. Critical to that work is ensuring that a pragmatic lending environment exists within the state. Therefore, we applaud the House Commerce Committee for introducing HF 2329 to expand access to credit for Iowa consumers and hope you will sign the bill into law expeditiously.

Sincerely,

Ashley Urisman
Director of State Government Affairs
American Fintech Council

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