To Our Members –

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As we congratulate the new President and consider the year ahead, we have a lot to be proud of as we look back on 2020. Our industry, our families, and our country faced unprecedented challenges with a global pandemic, unheralded economic disruption, and the political volatility that comes with an election year. Our customers also faced extraordinary challenges, as millions of Americans were plunged into financial instability and hardship, as States and the Federal Government took measures to contain the spread of COVID-19. Many of our companies did not hesitate to respond quickly and effectively. We instituted various programs and initiatives to help our customers weather the pandemic, preserve their financial health, and provide much needed access to responsible and affordable credit to millions of families who were among the first to feel the credit crunch from credit card companies. ‍

A Year to be Proud of - While responding to the pandemic, we managed to accomplish milestones in our policy work as well. A few highlights of note include a sustained commitment to our founding principles by publicly supporting the Military Lending Act's 36% APR standard. In 2020 our association was a key player in delivering the policy wins of the FDIC and OCC's Valid-When-Made rules, a new OCC proposal on what constitutes a national bank lending program, and a CARES Act provision supporting employer-provided student loan repayment plans. The MLA also supported draft legislation that would provide emergency relief to those borrowers hardest hit by the COVID19 pandemic in the Consumer Protection Relief Fund. Finally, the IRS has begun implementing legislation that MLA helped pass that will modernize the IRS income verification express service system (IVES). When fully operational, this service will enable lending platforms to verify personal and household income securely via an online API system.

As part of our commitment to create a more inclusive financial system, the MLA established new major initiatives, including developing a Diversity and Inclusion Board strategy that sets the standard for member fintech groups. Additionally, in order to respond to the racial justice protests in 2020, we got off the sidelines and took action to be a driver of social change and equity, in the industry and within our companies, by establishing investment commitments to racial and economic justice organizations on the front lines of the fight.  ‍

Our Advocacy Never Stopped - Rising to the Challenges Ahead - The year ahead will have its challenges. As the pandemic rages on, economic headwinds and potential market wide disruptions are still just around the corner. In addition, we are in the midst of a policy debate that will define our companies, our industry, and our business identity.  

Consider Chairwoman Waters’s letter to the Biden-Harris Administration highlighting, in addition to a comprehensive list of initiatives, a focus on Diversity and Inclusion: “In addition, I encourage you and your team to make full use of Section 342 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, which created Offices of Minority and Women Inclusion (OMWI), at the Treasury Department and each of the independent financial regulators. Your administration, for example, should require mandatory compliance with the Joint Standards for Assessing the Diversity Policies and Practices of Regulated Entities by the Agencies, including annual reporting of diversity data by regulated entities.”

These remarks give us a clear goal for 2021. As we build our businesses back from the disruption of COVID-19; respond to an evolving competitive marketplace; and maneuver within a policy space where some of our core priorities are at stake, we must build two key elements into all our products, our people, and our policies.  

1. We are part of the solution when it comes to responding to COVID and providing access to responsible and affordable credit. Much of the good work we do is compromised without clearly, aggressively, and vocally distinguishing ourselves from predatory lenders. Access to responsible credit is crucial for Americans as they get back to work, seek to recover from COVID-19, and put their financial lives back in order. Our missions and our products can’t tell our story on their own. This is our time to enhance data-backed narratives, push research-based policy and regulatory solutions, and expand outreach campaigns to ensure our story is being told right.
   
2. We have to be intentional and vocal about our commitment to Diversity, Equity, and Inclusion. Racial economic justice will be at the forefront of the Biden Administration, as well as Capitol Hill. DE&I must be built into our identity and must reflect how we are moving the needle within an industry that has recognized historic disparities in internal representation. Additionally, our products’ positive impact on our customers, especially communities of color, rural communities, and financially vulnerable populations and businesses, must take center stage as we engage in the policy and public arena.  

We thank you all for your work in 2020. We should be proud of the work we accomplished, and the positive impact we have had on our customers during unprecedented times. We look forward to working with the MLA membership in the year ahead as we meet challenges and seize the opportunities to continue our work helping millions of Americans get on track to economic prosperity. We have an exciting and new beginning for the future of our federal and state advocacy efforts which will be announced in the coming weeks ahead. To all the MLA members, we thank you for being a part of this journey.   ‍

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- Board of Directors