Recently, Credit's editorial staff posed some questions to the new AFSA chair on a variety of subjects, ranging from recent legislative issues/current challenges to consumer education. Here are her responses:

17. During your one-year term, what would you like to accomplish?

1. During my one year term, I would like to further the fine work of my predecessors. AFSA must continue to provide a balanced view on issues facing our industry. Too often the press seems to put a negative slant on our industry, when, in fact, the industry serves an important and prudent role in providing credit to American consumers, and enabling them in pursuit of their life goals.

17. Subprime mortgage lending has been a hot topic, especially at the city and state levels. How would these highly restrictive proposals affect Independent finance companies? Is this legislative mindset likely to spread to personal loans?

1. The state and local governments are becoming more aggressive in their desire to regulate "predatory lending." Yet the definition of predatory lending is not clear, and the proposed regulations are also not clear. I believe it is a likely jump in this current legislative environment that predatory mortgage lending issues could be expanded to the personal lending arena.

17. Besides "predatory" mortgage lending, what other legislative challenges do you see the industry facing in 2004?

1. Identity theft has been and will continue to be a primary concern for our industry. The rate of growth in identity theft is staggering, and the loss to consumers and businesses is significant.

   Additionally, the increasingly complex rules around consumer privacy will continue to challenge us as an industry, particularly as state and local jurisdictions are attempting to preempt the federal requirements.

17. In the case of companies that are not currently involved in state associations and state issues, what do we need to do to demonstrate to them why it is necessary to be involved in these activities?

1. Involvement with state associations is critical now, especially as the states are being more aggressive in pursuit of increased tax revenues by imposing new taxes on financial services entities. Another recent example of the importance of state association involvement can be seen in the legislative activity of late by states to restrict or curtail the use of Industrial Loan Company and Thrift charters, which could impact a number of our members and their ability to offer financial services on a national level.

17. Harley-Davidson has been a big supporter of the AFSA Education Foundation. How important is it for the industry to continue to support financial literacy initiatives such as the foundation's current curriculum?

1. I believe it is critical for the AFSA Education Foundation to continue its outstanding work in the area of financial literacy. It is essential for consumers nationwide to possess a basic foundation regarding how to conduct their financial affairs. Unfortunately, a number of studies have shown that basic financial management skills are often lacking in the general population, and particularly in our youth, our next generation of credit customers. It is imperative that we as an industry strongly support the financial literacy initiatives needed to educate our current and future customers.

17. What steps would you like to see the association take to increase and/or strengthen membership? From your point of view, how do you feel companies benefit through their membership in AFSA?

1. AFSA enables us as an industry to express our collective view on upcoming federal and state regulations or legislation. AFSA represents our interests in a number of public forums to ensure that a balanced view is given on issues regarding the financial services industry. The conferences hosted by the association are valuable and insightful. For example, as a rapidly growing finance company, we have found the Investors Relations conference to be of high value to us in identifying and attracting new capital to fund our growth. I believe there are many other financial services companies, both captive finance companies and independents, who would benefit greatly through a membership in AFSA.

17. In addition to the Independent Section, the association has specialized divisions providing separate forums for companies within financial sectors. Do you think this is a good approach?

1. Given the diversity of our membership, ranging in size of company and portfolio as well as areas of lending expertise, I believe it is appropriate and beneficial for AFSA to offer specialized divisions for its members.

17. On a personal level, what do you hope to achieve during your experience as AFSA's chair?

1. In my career at HDFS, I have personally benefited by the professional contacts and relationships developed through my involvement in AFSA. In this next year, I hope to give back to AFSA and serve it well as I take on this important leadership role.