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 his responses:

What would you like to accomplish during your one-year term as AFSA's chairman?

As you know, AFSA is finalizing its updated Strategic Plan. After Board of Director approval of the plan at the annual meeting, Randy Lively and I will focus on the implementation of the plan. Our goal is to make AFSA the preeminent United States Trade Association representing both the consumer and commercial credit industries.

From your point of view, how do companies benefit through their membership in AFSA?

Membership in AFSA benefits companies in several ways. Member companies have access to AFSA's industry meetings throughout the year. These provide valuable information as well as in-depth discussions of opportunities and challenges facing the financial services industry. In addition, AFSA provides its members with timely updates on developments in the federal and state legislative, regulatory, and political environments. AFSA also acts as an educational resource conducting development programs for all levels of management in financial services.

What steps would you like to see the association take to increase and/or strengthen membership?

AFSA's membership is already on the rise. To continue this trend, we need to adapt our membership strategy to further address the consolidation within our industries. Also, we need to stay focused on enhancing communication with members on a real time basis, especially through the AFSA website. Additionally, we need to reach out to potential members and make them aware of the merits of AFSA membership.

The association has sixteen Committees of Professional Interest, ranging from Marketing to Accounting. Do you think executives from AFSA member companies who participate in these committees gain something extra?

Absolutely. As Chair-Elect, I have been getting positive feedback from these very executives over the past year. These committees give member executives the opportunities to engage in dialog with senior colleagues from other companies on emerging industry trends and best practices.

Legislation directed toward subprime mortgage lending continues to be a hot topic, especially at the city and state levels. If enacted, how would these highly restrictive proposals affect AFSA members? Is this legislative mindset spreading to other types of lending?

State and city governments continue to pass well-intentioned, but unfortunately often flawed, legislation regarding subprime mortgage lending. If upheld, these will directly affect AFSA members, requiring compliance with a vague and complicated patchwork of ordinances. As we have seen in states that have already passed this type of legislation, this has led to limiting access to credit for consumers in these jurisdictions. We need to remain mindful of the potential that this could spread to other types of lending, further impacting the credit industry and limiting the availability of credit to those Americans who need it most.

What other legislative or regulatory challenges do you see the industry facing in 2005?

Starting in 2004 and certainly continuing into 2005, one of the most significant challenges will be FACT Act compliance. This appears to be one of the most complicated regulatory burdens to affect the industry in years. To that end, AFSA is holding a dozen FACT Act compliance training seminars throughout the country to help ensure our industry's teams will be ready as these requirements are rolled-out.

Most of next year's legislative agenda for the financial services industry will be determined by November's elections and which political party becomes the majority in the House and the Senate. Regardless of who gets in the White House, a full-scale discussion of lending practices as it relates to all industry segments is very likely.

Earlier this year, the AFSA Education Foundation launched MoneySKILL, an online personal finance curriculum available free of charge to high schools or other interested organizations. How important is it for the industry to continue to support financial literacy initiatives?

Absolutely vital. As AFSA's CEO Randy Lively covered in his recent congressional testimony, AFSA's financial literacy initiatives represent one of our most important endeavors. As one of the founding members of the AFSA Education Foundation, CIT has been a strong supporter of financial literacy and will continue to be one in the future.