In response to a rule proposed by the Consumer Financial Protection Bureau, the American Financial Services Association launched a campaign to promote the importance of traditional installment loans.
The #OurLoansWork campaign is an extension of an existing AFSA website which has been reworked not only to provide educational resources on traditional installment loans, but also to allow member companies to advocate on behalf of the industry, that is, against the CFPB proposal that would impose “mortgage application processes” more Strict small lenders to combat predatory lenders.
“We really don’t want to have a lot of federal reach in our business that goes into the title and payday loan industries,” said Vice President of Communications Jack Ferry. “So we are trying to create a website that is transparent, awareness-raising, and has educational components for our members and their customers, and for anyone else who visits the site, so that they have a better idea of what are the traditional installment loans. all about.”
Originally dedicated to education, the site explains what traditional installment loans are: “a small dollar loan with a fixed rate and full repayment repaid in equal monthly payments.” AFSA members include companies that manage these types of small loans, which average $ 1,500 with monthly payments of $ 120 for 15 months.
“We want to protect our members’ businesses and operations, so that they are not forced to go bankrupt due to excessive regulation and do not worry if they are doing something that is wrong,” said Ferry.
The site also helps people directly contact and petition their representatives in Congress and invites members and clients to share their positive stories and testimonials about getting small loans, which they can do through the website or using the hashtag on social media.
“Because these people, customers and branches, are built in the community, we also want to reinforce that by promoting this entire digital community with the hashtag, sharing their stories, sharing their experiences,” said James Hong, website and social networks . manager. “It just reinforces the fact that these loans work, are efficient and very beneficial to millions of Americans across the country.”
Many branches that work with traditional installment loans only have a few employees working in the front of a store or in a mall, Ferry said, which means they don’t have the bandwidth to do their own communications or promotional work. This campaign offers AFSA the opportunity to provide members with an avenue to make their voices heard, in addition to advocating for the organization on Capitol Hill.
“The #OurLoansWork campaign is AFSA’s latest effort to ensure that federal regulators, Congress and consumers are fully aware of the important value that traditional installment loans bring to the American consumer and the US economy.” Said Executive Vice President Bill Himpler in a statement. “We encourage everyone to visit the website, explore the resources, and learn about traditional installment loans.”
(iStock / Thinkstock)