Chris Stinebert, AFSA President /CEO, Addresses The Importance Of Traditional Installment Credit

Online, March 12, 2011 (Newswire.com) - WASHINGTON D.C. -- Traditional installment lending is available in every small town in America. "Consumers and the economy need to expand traditional installment credit," said American Financial Services Association (AFSA) president and CEO Chris Stinebert at the March 2, 2011 hearing on "The Effects of the Dodd-Frank Act on Small Financial Institutions," on behalf of the association's non-bank finance company members.

Chris Stinebert emphasized the valuable role that finance companies play in local communities in testimony before the House Subcommittee on Financial Institutions and Consumer Credit. Finance companies provide small-dollar personal loans to individuals, families, and small business owners. He cited the examples of "the carpenter who needs to repair the transmission on his pickup, the family that needs a new washer and dryer, or the start-up company that needs a little short-term help to land the next client."

Chris McKinley, former banker and executive with Green Cap Financial, and AFSA member, recently met with Chris Stinebert in Washington and further explained: "This form of lending is vital and provides safe, affordable and disciplined credit at a time when the need has perhaps never been greater. The consumer loan industry is well represented in this country as a mainstreet lending option in almost every town and city in the US. This traditional financial lending product provides disciplined installment credit in the most responsible way to consumers who need small dollar loans."

"Given the chaotic economy of the past few years, people are recognizing the importance of traditional financial values. Those values include spending wisely, saving money, and borrowing responsibly. The traditional installment loan is a highly regulated product that allows consumers to borrow with confidence and ease."
- Chris McKinley, AFSA Member

In his testimony to the US House Subcommittee, Chris Stinebert also described AFSA member loan products: "These products meet the standards of the Center for Financial Services Innovation's definitional benchmarks for high-quality credit. They are marketed transparently. They are affordable, because our members work with customers to determine their ability to repay the loan. They are structured to support repayment, with amortization schedules. And finally, our members report their customers' repayment performance to the credit bureaus so that good payment behavior is rewarded by a higher credit score."

"Nonbank financial companies have been successful in providing needed credit and other financial products and services in the communities in which they operate. This is because of the appropriate oversight of state regulators who have a familiarity with local and regional situations and issues faced by lenders."
- Chris Stinebert, President and CEO of AFSA

Related Website: Association For Responsible Lending