AFC strongly supports Florida House Bill 1267 (HB-1267) sponsored by Representative Juan Fernandez-Barquin that will ensure access to safe and transparent credit options for Florida families

Advocating for responsible and affordable interest rate caps is a key component of AFC advocacy in Washington, D.C. and across the country

Tallahassee, FL (May 23, 2023) – The American Fintech Council (AFC), the premier industry association representing responsible fintech companies creating critical access to safe and affordable financial services has asked Governor Ron DeSantis to sign House Bill 1267. Sponsored by Representative Juan Fernandez-Barquin, the legislation would establish a 36% Annual Percentage Rate (APR) cap on personal consumer loans.

“Families should have the critical access to the safe credit options they need.” said Phil Goldfeder, Chief Executive Officer of AFC. “We applaud the sponsors of this bill for recognizing that too many families, particularly in rural and minority communities, have been shut out of the traditional financial system and only left with predatory or payday lenders that can leave consumers in even deeper debt.”

In a recent letter to Governor Ron DeSantis, AFC urged immediate signage of the legislation noting that a 36% interest rate cap on personal consumer loans will increase sustainable access to safe and affordable credit for Florida consumers. Research indicates that 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.

“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,” wrote Goldfeder in the letter. “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.”

Read full letter here.