AFSA's State Government Affairs team has submitted a comment letter to the Alaska Senate concerning Senate Bill 39 and its implications for banking laws. The letter raises concerns that the passage of SB 39 could eliminate essential loan options for Alaskans who rely on them to build credit. It warns that the bill would impose harmful restrictions on AFSA members' lending activities in Alaska.
The letter highlights the role of licensed lenders in providing fair loan options to residents with less-than-ideal credit scores, fulfilling a significant need in Alaska's credit landscape. AFSA members also participate in commercial lending within the state, which would face limitations if SB 39 becomes law.
The proposed legislation is said to adversely affect communities it aims to help, particularly lower and moderate-income families, underserved groups, and minority communities. According to the letter, SB 39 would effectively ban credit insurance and other optional protective products that are crucial for consumer financial stability. AFSA argues these services are voluntary and separate from loan terms.
Additionally, AFSA emphasizes the risks of deviating from TILA APR standards. Straying from these established norms could undermine consumer protections and restrict credit access in Alaska.
The letter can be accessed on AFSA’s website under the direct advocacy section.