SPPI to Testify in Alaska Against Consumer Credit Price Control Bills

Juneau, AK—The Southwest Public Policy Institute (SPPI) has been invited to provide expert testimony in the upcoming legislative sessions for Alaska House Bill 145 and Alaska Senate Bill 264, which will take place on April 30, 2024. These committee meetings represent a significant opportunity for SPPI to influence state legislation and highlight the potential consequences of proposed price controls in the form of rate caps on consumer credit products.

House Bill 145 is under review by the House Finance Committee, and the Senate Community and Regional Affairs Committee will discuss Senate Bill 264. Both bills propose a rate cap on consumer credit products, which, according to SPPI’s extensive research, could severely limit credit access for Alaska’s most vulnerable populations.

Patrick M. Brenner, President of SPPI, will present findings from the Institute’s pivotal studies, “No Loan For You!” and “No Loan For You, Too!” These studies illustrate the unintended negative effects similar legislation has had in other states, such as New Mexico and Illinois, including reduced availability of small-dollar loans and increased financial distress among low-income and underbanked consumers.

“This is a monumental opportunity for the Southwest Public Policy Institute to voice the concerns of thousands of Alaskans who could find themselves financially marginalized by the well-intentioned, yet potentially harmful, provisions of House Bill 145 and Senate Bill 264,” said Brenner. “We are prepared to present our case and advocate for regulations that protect consumers while preserving their access to essential credit.”

The testimony aims to urge the committees to reconsider the proposed rate caps’ one-size-fits-all approach and explore more nuanced regulatory frameworks that effectively protect consumers from predatory practices without constricting their financial options.

The sessions will be held in the Alaska State Capitol and will be open to the public. They will also be streamed live, allowing for broad accessibility and transparency.