AFSA's latest white paper, released on May 7, 2025, examines the trend among states to consider implementing "all-in" rate caps. These caps redefine how the Annual Percentage Rate (APR) is calculated. The report highlights that many of these new laws are inspired by the Military Lending Act’s broader definition of the Military Annual Percentage Rate (MAPR).
The paper warns that these legislative changes might lead to a misrepresentation of the true cost of credit for borrowers. It suggests that such measures could result in decreased access to credit and other unintended economic consequences. The document advises lawmakers to thoroughly assess the potential impacts before enacting significant modifications.
AFSA provides this white paper and others through the State Government Affairs (SGA) resources section on its website.