Alaska’s Senate Bill 39 (SB 39) proposes a 36% APR cap on consumer loans up to $25,000. The bill aims to regulate financial services, prevent “predatory” lending, and bring state laws in line with federal consumer protection measures. However, while the bill’s intentions may seem noble, its real-world consequences will devastate Alaskan consumers—especially those with […]
A public bank is a forced gamble with taxpayer dollars that ignores market realities, mandates risky lending, and risks compounding the damage caused by the artificial credit crisis created by New Mexico’s interest rate cap.
Representing the Southwest Public Policy Institute, I recently had the opportunity to testify before the Alaska House Finance Committee and the Alaska Senate Community and Regional Affairs Committee regarding proposed legislation on consumer credit. The bills in question, House Bill 145 and its Senate counterpart, Senate Bill 264, aim to implement rate caps similar to […]
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.
The unintended consequences of price controls on consumer access to credit.
We tested the prediction that banks will step in when payday lenders face restrictions. They didn’t want our business.
How the war on specialized emergency loans has hurt New Mexicans.
Specialized emergency lenders play a crucial role in providing access to credit for individuals who may not qualify for traditional loans from banks or credit unions, and can be a lifeline for those facing unexpected expenses or a temporary financial setback.
Originally published at Santa Fe New Mexican on June 11, 2022. Earlier this year, as New Mexico debated legislation limiting to 36 percent the annual percentage rate for consumer loans in the state, the primary witness testified in support of the bill before the Consumer and Public Affairs Committee. Claims were made that do not hold […]
