►
From YouTube: House Standing Committee on Banking and Insurance
Description
This meeting is delayed due to weather
D
E
E
A
President
fraser
walked
in,
we
do
have
a
quorum.
We
are
authorized
to
conduct
business
here
in
the
committee
room
this
morning.
We'll
go
ahead
and
get
started.
The
first
bill
for
consideration
this
morning
is
going
to
be
house
bill.
48
representative
bentley,
representative
bentley.
The
floor
is
yours:
when
you're
ready
introduce
yourself
and
please
proceed.
C
E
C
C
Okay,
so
I'll
start
chairman
rowan
house,
bill
48
is
an
important
piece
of
legislation
to
ensure
the
citizens
of
the
commonwealth,
have
access
to
pharmacists
services
that
can
improve
health
outcomes
and
lower
health
care
costs.
Each
individual
in
the
state
of
kentucky
is
within
six
miles
of
a
pharmacist.
C
Pharmacists
are
highly
trained
health
care
providers,
but
unfortunately,
in
kentucky
they're
not
compensated
for
many
services.
They
provide,
unlike
other
health
care
providers,
who
get
paid
for
delivering
services.
Currently,
there
is
no
no
mechanism
for
pharmacists
to
submit
claims
and
receive
reimbursement
for
providing
the
same
care
for
which
other
providers
are
paid.
C
This
is
due
to
decades
long
separation
of
pharmacy
benefits
like
being
paved
just
for
the
medication
from
medical
benefits
which
pay
for
services
such
as
health
care
provider
visits
or
a
rapid
flu
test
or
smoking
cessation
cancer
to
name
a
few
pharmacists
are
under
their
current
scope
of
practice
in
kentucky
to
provide
many
of
these
services,
yet
are
not
able
to
bill
for
them
under
house
bill.
48,
insurers
and
health
plans
will
not
be
able
to
deny
reimbursement
to
a
pharmacist
for
providing
a
service
or
procedure
within
the
pharmacy
scope
of
practice.
A
C
Sentences:
okay
house
bill
48
is
not
an
expansion
of
pharmacy
scope
of
practice.
It
establishes
a
claim
submission
process
that
ensures
pharmacists
are
reimbursed
for
the
same
services
for
which
care
providers
are
reimbursed.
Health
insurers
could
reimburse
a
pharmacist
just
as
they
reverse
other
non-physician
providers
as
written.
This
bill
applies
to
commercial
insurance
plans
only
and
it
does
not
mandate
medicaid
to
pay
for
pharmacist
services.
Thank
you,
mr
chairman.
F
G
C
I
don't
see
anything
right
now.
No
sir,
we've
been
doing
it
for
50
years,
I'm
a
pharmacist
and
I've
given
away
my
profession
to
the
people
of
my
area
and
never
charged
a
stint
all
these
years.
I
mean,
if
you
brought
in
a
baby
and
it
was
in
seizures
through
the
front
door.
I
called
the
doctor
and
got
okay
to
to
administer
acetaminophen
suppositories,
so
that
baby
wouldn't
die
in
my
arms,
but
I
never
got
a
cent
for
it
and
I
can
go
on
and
on
so
I
really
don't
see
this.
C
A
H
A
E
E
I
E
E
E
E
A
E
A
A
Thank
you,
mr
chairman,
members
of
the
committee
representative,
bart
rowland
house
district
21
here
this
morning
on
behalf
of
the
department
of
insurance
and
the
public
protection
cabinet
to
present
to
you
house
bill
509,
it's
an
act
relating
to
reorganization
of
the
department
of
insurance
and
we
have
on
zoom
with
us
today.
I
believe
both
commissioner
clark
and
deputy
commissioner
dj
watson.
A
I
Thank
you,
mr
chairman
and
members
of
the
committee.
I
appreciate
your
attention
on
this
bill.
It
is
a
I
know
you,
it's
expressions
used
a
lot,
it's
a
simple
bill,
but
it
really
is.
The
department
is
proposing
in-house
bill
509
to
divide
the
division
of
insurance,
product
regulation
back
into
two
divisions,
which
are
the
health
and
life
insurance,
managed
care
and
the
division
of
property
and
casualty,
and
then
the
second
aspect
of
this.
I
Setup
where
pnc
and
health
and
life
are
all
combined
into
one
huge,
massive
division
and
the
other
aspect
of
it
is
the
department
you
all
might
find
it
interesting
that
the
department
has
267
792
licenses
as
of
this
morning
and
they're
in
18
categories,
and
the
agent
licensing
is
only
one
of
those
18
categories.
So
we
want
to
change
that
name
to
division
of
licensing,
to
make
it
clear
for
those
who
are
trying
to
do
business
in
the
states.
I
A
E
E
E
E
I
I
A
K
K
Association
for
you
all
who
have
been
around
for
a
few
years,
we
started
doing
some
modernization
with
regard
to
consumer
finance
companies.
A
couple
of
years
ago
we
gave
the
department
some
additional
regulatory
authority
to
oversee
them,
and
this
bill
has
been
talked
about
for
a
couple
of
years
now,
not
in
its
exact
form,
because
we
have
changed
some
things
around.
We
do
have
a
committee
substitute,
and
I
would
ask
for
that
committee
substitute
to
be
before
the
committee.
K
K
The
way
it's
set
up
is
to
make
more
3,
000
and
below
loans
instead
of
making
loans
above
three
thousand
dollars.
Because
again
the
business
model
and
the
rate
structure
goes
goes
down
that
path.
What
this
bill
will
do
is
allow
for
a
loan
up
to
five
thousand
dollars
to
get
the
36
rate,
and
then
there
would
be
a
blended
rate
above
the
5
000
loan.
So
you
take
away
the
the
the
disincentive
to
make
the
loans
above
3,
000
and
5
000
I'll
turn
it
over
to
austin.
L
Thank
you,
representative,
meredith
and
again
thank
you,
chairman
roland
and
vice
chair
lewis,
for
the
opportunity
to
speak
on
this
important
bill.
As
I
said
before,
my
name
is
austin
clancy
I
represent
one
main
financial.
We
are
the
largest
national
excuse,
the
largest
personal
installment
lender
in
the
country,
but
I'm
also
here
in
my
capacity
as
president
of
the
kentucky
financial
services
association,
which
is
made
up
of
five
companies,
one
main
one
main
financial
landmark:
financial
mariners,
finance,
republic,
finance
and
heights
financial.
L
We
represent
about
120
branches
across
the
state
of
kentucky,
and
we
specialize
in
providing
access
to
credit
to
individuals
with
less
than
perfect
credit
scores
and
access
to
credit
is
really
the
reason
behind
this
bill
and
why
it
is
so
important
today,
as
representative
meredith
alluded
to
earlier,
we've
spoken
on
this
issue
for
multiple
years
in
a
row
and
just
to
kind
of
give
you
a
snapshot
of
why
these
this
type
of
win
these
types
of
loans
are
necessary.
You
know
right
now.
L
A
recent
study
by
the
the
federal
reserve
board
indicated
that
less
than
40
of
americans
have
400
in
their
personal
savings
to
address
financial
crisis
or
emergencies.
In
addition
to
that,
42
percent
of
americans
have
a
sub
700
credit
score,
meaning
that
for
a
lot
of
those
individuals,
they
are
unable
to
attain
loans
from
banks
and
credit
unions,
and
that's
not
that's
not
necessarily
a
criticism
on
banks
and
credit
unions.
Those
as
representative
meredith
alluded
to
earlier.
L
Those
those
institutions
rely
on
deposits
from
consumers
in
order
to
you
know,
blend
out
money,
those
individuals
so
they're,
not
exactly
in
a
position
where
they
can
loan
money
to
individuals
in
this
threat.
In
this
credit
substrata,
due
to
the
risk,
that's
involved
and
just
to
kind
of
put
a
pin
on
that
point
of
that
42
60
million
americans
have
a
sub
credit
score
below
620
and
so
for
those
individuals,
finding
access
to
credit
can
be
incredibly
challenging.
L
So
you
know
the
what
you're
paying
what
the
cost
or
credit
is
going
to
be
up
front
fix
payments,
so
those
payments
will
remain
steady,
the
entire
time
there's
no
balloon!
There's
no
balloon
payments
in
that
process.
Each
payment
goes
to
principal
and
interest,
meaning
it's
fully
amortizing.
So
there's
no
no
possibility
you'll
be
able
to
have
a
negative
amortization
process
where
you
won't
have
the
ability
to
pay
down
that
principle.
So
you
won't
have
something
you
won't
pee
up
on
the
loan
for
years
and
have
nothing
to
show
for
it.
L
In
addition,
we
all
engage
in
underwriting
for
our
customers,
meaning
we
do
a
full
ability
to
repay
analysis
on
each
one
of
those
customers
to
determine
their
disposable
income
and
whether
this
loan
fits
their
budget
and,
as
we're
fond
of
saying,
we
are
not
incentivized
to
loan
money
to
people
that
cannot
afford
it,
and
so
our
underwriting
process
is
really
the
hallmark
of
why
you
know
we're
able
to
provide
credit
to
this.
This,
this
demographic
of
individuals
and
so
by
expanding
out
the
interest
rates.
L
As
representative
meredith
talked
about
earlier,
we
are
able
to
extend
credit
further
down
those
fico
bands
into
the
lower
fico
score
individuals
to
folks
that
have
less
than
perfect
credit
or
no
credit
and
and
and
give
them
the
opportunity
to
meet
some
of
their
loan
goals,
and
you
know
our
loans.
Typically,
they,
the
loan
purpose,
is
kind
of
they
range
pretty
widely.
But
for
the
most
part
you
know,
debt
consolidation
is
a
huge
issue
for
us.
We
have
a
lot
of
consumers
that
come
in
with
high
credit
card
balances.
L
As
you
know,
those
are
unstructured
loans,
and
so
it's
very
difficult
consumers
get
out
of
there.
We
will
take
those
loans
and
refinance
them
into
a
more
structured
payment
format,
so
they
can
get
out
of
the
credit
card
trap.
We
also,
you
know,
finance
a
lot
of
home
repairs.
We
finance
a
lot
of
auto
repairs
and
we
also
finance
a
lot
of
things
like
vacations
or
just
you
know,
you
know
improvements
in
the
backyard
just
for
quality
of
life.
This
isn't
necessarily
doom
and
gloom
loan
product.
L
You
know
we're
we're
out
there
to
kind
of
provide
full
financial
services
for
all
individuals
in
this
strata
and
so
I'll
just
to
kind
of
touch
on
the
idea
of
kentucky
in
a
snapshot.
You
know,
as
representative
meredith
alluded
to
earlier,
the
mark.
The
marketplace
has
been
artificially
bifurcated
by
the
current
loan
format.
L
Excuse
me
the
current
rate
format,
which
basically
disincentivizes
lending
above
three
thousand
dollars
in
state,
and
so
there
many
other
states,
don't
necessarily
have
rate
structures
like
that,
and
so
moving
to
a
blended
rate
structure
allows
for
a
more
even
flow
of
the
credit
or
risk
grades
up
up
down
the
chain.
Excuse
me
to
allow
for
us
to
appropriately
underwrite
individuals.
What
that
means
is
that
people
at
the
bottom
end
of
the
credit
spectrum
that
can't
get
loans
right
now
will
have
access
to
loan
offers.
L
We,
it's
our
it's
our
belief
that
by
modernizing
the
rate
structure
in
the
state,
we
will
expand
that
access
to
credit
out
to
individuals
who
have
no
no
ability
to
get
it
right
now
and-
and
the
other
portion
of
this
is
that
what
this
will
also
do
from
an
economic
development
standpoint
is
this
will
allow
lenders
in
the
space
to
you
know
this.
The
rising
tide
raises
all
ships
as
they
like
to
say,
and
you
know
lenders
in
this
space.
L
K
One
other
thing,
I'll
briefly
mention
chairman,
is
that
we
do
also
increase
the
non-refundable
portion
of
the
loan
processing
fee
currently
that
loan
processing
fee
can
be
up
to
150
maximum.
We
don't
change
the
maximum
fee,
we
do
add
25
dollars
to
the
non-refundable
portion
when
there's
a
prepayment
or
or
something
is
paid
off
early.
That
was
a
request
that
was
sent
to
us
by
some
of
the
smaller
dollar
lenders
in
the
process
of
working
through
some
of
these
things.
A
A
What
I
would
say
all
right
sounds
good,
so,
in
the
room
signed
up
to
speak
in
person
is
dustin
miller,
executive
director,
kentucky
consumer
consumer
finance
association
dustin.
If
you
want
to
go
ahead
and
come
forward
and
then
we
also
have
commissioner
vice
remotely
and
we'll
get
to
him
after
dustin's
finished.
M
M
Representative
meredith
has
really
been
somebody
who
you
know
over
the
years
understands
our
industry
and
everything's
provided
good
insight
to
you
all
and
to
us,
as
we've
gone
about
working
our
industry.
So
it's,
I
guess
apt
for
masks
in
2021
and
2020
that
I
would
be
here
and
in
a
bill
against
a
bill
that
affects
our
industry
that
I
wouldn't
be
supporting.
He
has
worked
really
hard
and-
and
I
do
want
to
say,
there's
been
a
lot
of
negotiation.
M
M
M
We
have
about
40
members
that
cover
about
200
just
under
200
storefronts
across
the
the
state,
so
the
mom
and
pop
lenders
that
you
heard
about
are
independents,
as
you
heard,
those
are
generally
our
members,
three
or
four
locations
at
most,
and
you
know
generally
live
in
the
communities
that
they
lend
in
so
to
the
bill.
The
proposal
has
been
put
before
you.
My
members
really
wrestled
with
this,
because
we
we
do
see
the
need
out
there
to
look
at
the
rate
structure
constantly
and
make
sure
that
it
makes
sense.
M
Whenever
we
look
at
this
proposal
that
was
brought
to
us,
we
have
concerns
about
loans
at
the
sort
of
higher
end
of
of
the
spectrum
for
our
customers,
because
you
do
see
a
lot
of
consolidation,
which
I
think
mr
clancy
discussed.
When
you
see
that
consolidation
at
that
higher
end,
what
this
bill
is
going
to
do
is
really
add
a
significant
rate
to
those
those
loans
at
that
higher
end
and
those
loans
generally
have
really
long.
M
You
know
three
to
five
year
type
time
frames
on
them
in
terms
of
things
so
you're
wrapping
somebody
up
in
these
consolidation
loans.
For
a
long
time,
we
agree
that
our
product
is
better
than
a
lot
out
there.
It
has
a
beginning
and
end
all
of
the
features
that
you
heard
before.
I
guess
our
concern
is
the
bill
does
add
significant
amount
of
rate
top
into
that
structure
and
the
reason
that
I
think
the
biggest
portion
of
that.
Why
it's
been
the
biggest
issue
for
my
members
has
been
the
blended
rate
structure.
M
So
2014
the
rate
structure
was
changed
and
we
had
a
blend
prior
to
that
and
the
legislature.
We
worked
them
and,
commissioner
vice
to
change
the
rate
structure
at
that
time.
Move
the
36
percent
ban
that
we
have
today
from
a
thousand
up
to
3
000,
to
remove
a
second
tier
and
to
create
the
24
above.
So
it
is
bifurcated
the
way
it
is
now
we
did
that
really.
M
It
was
about
kind
of
three
things
and
one
was
about
the
customer
and
it
may
sound
funny
and
we're
lenders
and
we
like
to
make
money
just
like
anybody
else,
but
we
do
care
about
the
customers
that
we
serve
because
we
live
in
their
communities
and
they're
people
that
we
do
business
with
over
a
long
time.
And
so,
when
we
look
at
this
proposal,
you're
talking
about
taking
a
rate
I'll
use,
ten
thousand
dollars
as
a
loan,
for
example.
M
Today,
that's
at
24,
simple
for
the
customer
to
sort
of
understand
where
that
rate
is,
and
this
bill
would
take
that
kind
of
base
rate
to
28,
4
increase
and
that's
not
necessarily
problematic.
I
can
understand
what
mr
clancy's
talking
about
terms
of
making
sure
you
have
the
ability
to
lend
into
other
stratas
and
offer
credit
to
more
people.
M
If
you
get
more
rate,
gives
you
more
ability
to
do
that
to
a
certain
extent,
but
you
can
also
get
the
customer
upside
down
and
that's
where
the
blended
rate
really
gives
us
concern,
because
you,
you
blend
that
portion
at
the
36
percent,
so
on
a
10
000
loan.
Under
this
proposal,
half
of
it
would
be
at
36
percent
and
half
of
it
would
be
essentially
half
of
it.
The
other
half
would
be
at
28.
M
So
when
you
put
those
together,
it's
32
percent.
So
in
this
bill
that's
a
33
increase
in
terms
of
the
rate
you
have
on
that
ten
thousand
dollar
loan,
and
I
think
that
that
is
a
lot
of
rate
for
consumers,
and
I
think
the
second
reason
that
gives
those
pauses
is
how
consumers
understand
that
and
why
we
moved
away
from
sort
of
the
blended
rate.
So
I
use
ten
thousand,
I'm
not
strong
at
math
I'll,
be
the
first
one
to
admit
it.
M
I
use
ten
thousand
because
it's
a
simple
number
right:
five
thousand
five
thousand.
Well,
what
do
you
think
the
rate
would
be
for
a
customer
at
on
a
seventy
seven
hundred
and
fifty
dollar
loan
33
cents?
I'll
tell
you,
I
can't
do
the
math
that
fast,
you
know,
I
need
a
calculator
to
sit
down
and
extrapolate
it.
So
I
think
for
the
customer,
the
blended
rate
gives
some
concern
about
them.
Knowing
exactly
what
those
terms
are
great
part
about.
Our
product
is
it's
simple
right.
You
know
how
many
payments
you
got
to
make.
M
You
know
what
the
rate
is
and
here's
your
payment
and
off
you
go
it's
very
simple,
straightforward,
there's,
not
things
that
kind
of
got
you
in
there,
so
we
think
that's
confusing
to
the
customer.
Then
I'll
just
go
back.
We
made
it.
We
work
with
the
legislature.
I
was
fortunate
to
represent
the
industry
back.
Then
I've
worked
with
a
lot
of
you
for
many
years.
Commissioner
vice
was
here.
Then
we
came
to
the
legislature
and
agreed
to
make
the
rate
structure
change
away
from
a
blend
to
the
structure
that
we
have
today.
M
We
think
it
served
well.
I
think
our
members
don't
see
a
lack
of
loans
or
lack
ability
to
in
terms
of
their
outstandings.
We
think
that's
been
positive,
so
we
feel,
like
we've
made,
that
deal
and
just
feel
really
kind
of
bad
about
going
back
on
a
structure
that
we
agreed
to
in
the
past,
and
so
that's
sort
of
where
we're
coming
from
on
this
again,
it's
out
of
much
respect
for
representation.
I
don't
like
being
here
today
to
talk
about
his
bill.
M
Again,
he
is
a
friend
and
has
been
a
friend
to
our
industry,
but
those
are
sort
of
our
concerns.
It
really
is
around
that
blended
piece.
I
think
more
than
anything,
and
I
think
the
the
blend
causes
the
kind
of
second
issue,
which
is
the
higher
end
of
the
rate.
But
thank
you,
mr
chairman,
again,
I
call
you,
mr
chairman
and
chairman,
because
he's
a
local
government
chair,
but
thank
you
all
for
for
having
me
and
be
glad
to
answer
any
questions.
A
D
D
D
The
department
industry
worked
for
over
four
years
on
this
piece
of
legislation,
the
results,
these
efforts,
modernize
the
statute
and
align
the
supervisory
sections
relating
to
consumer
loan
to
the
consumer
loan
industry
with
other
industries
the
department
regulates.
The
bill
also
contains
several
benefits
to
the
industry,
while
at
the
same
time
provided
many
consumer
protection
initiatives
in
2014.
D
Furthermore,
the
bill
lowered
the
interest
rate
for
all
loans,
with
an
initial
balance
of
three
thousand
dollars
or
more
house
bill.
29
259,
though,
attempts
to
reintroduce
the
splendid
rate
concept
for
all
loans,
with
an
original
balance
of
three
thousand
three
thousand
dollars
to
fifteen
thousand
dollars,
significantly
increasing
the
annual
percentage
rate
for
all
loans,
with
original
balance
of
three
thousand
and
one
dollar
to
fifteen
thousand
dollars.
D
In
addition,
it
provides
various
other
changes
to
the
statute.
A
similar
bill
was
introduced
in
2020
legislative
session,
and
at
that
time
the
department
requested
documentation
from
the
industry
to
support
the
significant
increase
in
interest
rates
to
date.
The
primary
supporting
reason
for
increasing
the
rate
is
the
hypothetical
argument
that
increased
interest
rates
would
result
in
greater
access
to
credit.
D
So
the
percentage
changes
I'm
getting
ready
to
give
you
are
year
over
year
changes.
Sorry,
my
computer
just
messed
up
here-
is
year-over-year
changes
in
the
amount
outstanding
in
loans.
As
of
these
consumer
loans,
as
of
december
31st
of
each
year
in
2014,
the
17
increase
in
the
amount
of
loans
outstanding
2015,
a
40
2016,
a
nine
percent
increase
2017,
a
10
percent
increase
in
2019
that
amount
of
outstanding
loans
did
decrease
significantly
to
23
percent
and
in
2019
increased
again
to
about
eight
percent.
D
The
industry
has
not
provided
any
actual
documentation
to
support
the
claim
that
access
to
credit
for
consumers
would
increase
if
interest
rates
inc
is
increased.
Furthermore,
there
is
no
indication.
The
industry's
cost
of
funds
has
increased
since
2014,
when
interest
rates
allowed
into
the
statutes
were
changed.
The
u.s
treasury
curve
has
remained
relatively
low
and
we
have
been
in
a
very
low
rate
environment
and
in
fact,
in
2020.
D
D
2000
or
house
bill
259
does
reintroduce
the
blended
interest
rate
concepts
which
results
in
significant
confusion
to
the
customer.
The
apr
annual
percentage
rate
is
very
complicated
to
calculate
under
the
blended
rate
concept,
the
apr
will
substantially
will
be
substantially
higher
than
24
allowed
under
the
current
statute
and
in
actuality.
The
apr
cannot
be
determined
until
after
the
terms
of
the
loan
are
set,
such
as
the
loan
amount
and
the
length
of
the
loan
house
bill.
D
259
increases
the
annual
percentage
rate
for
all
loans
with
an
original
principal
some
of
between
three
thousand
and
one
dollar
and
fifteen
thousand
dollars.
So
in
conclusion,
the
department
opposes
house
bill.
259
is
currently
proposed
due
to
the
following
reasons:
the
negative
impact
of
the
consumer
due
to
the
blended
interest
rate,
which
results
in
a
complicated
apr
calculation
and
the
higher
interest
rate
that
would
be
permitted
on
loans.
Three
thousand
one
dollars
to
fifteen
thousand
dollars.
D
D
A
E
K
D
K
G
K
However,
what
we
really
have
in
the
state
are-
and
you
have
two
different
associations
who
are
represented
here-
you
have
the
association
represented
by
by
mr
miller.
You
have
the
association
represented
by
mr
clancy,
and
it's
really
they
they
operate
in
a
lot
of
different
ways
in
two
different
marketplaces:
the
marketplace
by
statute
for
consumer
finance.
Companies
is
a
marketplace
from
a
thousand
dollars
up
to
fifteen
thousand
dollar
loans.
K
K
M
So
it's
not
inaccurate,
but
you
know
I
have
members
who
I
have
members,
maybe
on
the
borders
that
operate
in
multiple
states,
so
yeah
it's
and
I
don't
want
I'm
sorry
mask
on.
I
don't
want
to
portray
this.
As
you
know,
it's
not
in
us
versus
them
kind
of
thing.
There's
a
lot
of
reasons
that
those
folks,
mr
clancy's
organization,
was
a
member
of
ours
in
2014.
M
M
We
have
a
long
history
of
having
a
lot
of
independence
and
being
somewhat
protective
of
those
independents
and
those
locally
owned.
Folks.
Here
I
don't
believe
in
protectionism.
I
wouldn't
ask
you
to
do
something
just
on
that
reason,
and
I
think
it's
what's
best
for
the
industry
in
the
market,
but
I
do
think
there's
something
to
be
said
for
that
local
lender
who
owns
that
you
know
knows
their
customer
down.
M
The
street
owns
that
you
know
rental
property
or
wherever
they've
got
their
business
to
kind
of
have
that
there
these
folks,
like
austin's
group,
they
have
lots
of
storefronts
too,
and
you
know
have
employees
in
the
community
also.
So
I
I
think
it's
really
about
not
so
much
that
and
much
more
for
us
about
what
the
bill
does
and
how
it
impacts.
You
know
kind
of
our
individual
members
and
just
how
comfortable
we
are
with
that,
and
it's
really
around
the
blended
rate.
I
mean
I
I
could
be
probably
for
the
bill
as
it
is.
F
Okay,
you
had
said
earlier
in
your
comments
that
a
lot
of
your
lenders
know
their
customers
and
are
in
the
same
community
with
them
and
that
the
rates
are
just
too
high
for
those
customers
and
that
that's
what
struck
me
and
and
in
the
earlier
comments,
the
the
first
speaker
on
zoom,
mr
clancy.
He
was
saying
that
most
americans,
we've
learned,
don't
have
more
than
400
in
savings,
and
so
they
may
need
loans
at
this
time,
especially
in
the
wake
of
the
kova
19
pandemic.
F
That
has
left
a
lot
of
people
struggling
financially
and
it
sort
of
seems
to
me
like
at
at
this
point,
raising
rates
on
those
loans
that
they're
going
to
need
would
be
taking
advantage
of
of
that
need
and
and
the
idea
that
so
many
people
are
struggling.
So
I
guess
I
I
would
not
be
comfortable,
especially
with
the
blended
right
in
the
committee
step.
L
May
I
make
a
comment
to
that.
Please
sure
go
ahead.
Austin!
Thank
you,
mr
chairman.
You
know
I
to
to
to
the
representative's
point.
You
know
we
operate
within
the
state
of
kentucky.
All
of
our
members
operate
in
every
local
community,
so
we
have
120
local
community
branches.
We
are
operating
in
the
communities
with
those
people
we
we
know
our
customers
as
well.
This
isn't
a
scenario
where
you
you
don't
stop.
You
know
if,
just
because
you
work
for
a
larger
company
doesn't
mean
you
stop
talking
to
your
neighbors.
L
You
know
we
work
with
our
customers
every
day
and
what
we've
seen
throughout
this
kovic
19
pandemic
is
the
notion
that
you
know
what
we,
the
the
need
for
loans
is
still
there,
but
what
we're
seeing
in
the
industry
out
there
in
terms
of
what
commissioner
advice
alluded
to
as
far
as
cost
of
credit,
is
we
get
our
credit,
our
our
capital,
from
banks
and
from
other
places,
and
what
we're
seeing
is
those
types
of
credit
boxes?
Let's
just
call
them
are
contracting.
L
That's
in
there
and
you
know
I'll
make
another
point
just
about
the
blended
rate
structure
in
general.
We
all
operate
using
loan
software
that
calculates
these
items
prior
to
the
customer,
actually
signing
the
loan
at
the
loan.
Closing
we
go
through
the
documentation
with
the
customer
that
has
to
be
adherent
to
the
truth
and
lending
act
or
tila
where
there
is
a
full
disclosure
on
the
front
of
the
page
and
large
bold
print
in
a
specialized
box
that
lays
out
the
cost
of
credit
and
how
much
it's
going
to
cost.
L
So
the
notion
that
the
consumer
is
having
to
figure
out
whether
the
what
the
loan
is
going
to
cost
is
is
kind
of
a
non-sequitur
because
they're
being
we're
disclosing
that
item
at
the
onset
for
lending.
You
know-
and
you
know
for
for
us
it's
the
notion
of
whenever
we're
underwriting
these
consumers,
we're
underwriting
them
to
the
point
to
a
point
where
they
can
afford
it.
L
So
and-
and
I
think
that's
the
other
issue
as
far
as
access
to
credit
goes
when
we
talk
about
the
unaffordability
of
loans
or
the
inability
of
these
people
to
get
loans.
What
this
does
is
turn
a
no
into
a
yes,
and
I
think
that
is
the
key.
That's
a
key
point
there.
This
isn't
an
issue
of
raising
rates
on
loans.
L
Consumers
have
it's
giving
these
consumers
access
to
loans
that
they
cannot
be
underwritten
for
right
now,
under
the
current
credit
credit
process,
and
then
just
with
regard
to
the
you
know,
the
loan
volumes
in
the
state
since
2014,
you
know
I'd,
say
in
2014,
there
was
some.
You
know
a
little
bit
of
claw
back
from
the
great
recession,
and
so
those
numbers,
I
believe,
are
kind
of
more
indicative
of
that.
L
However,
I
believe
the
full
growth
as
far
as
what's
reported
to
the
commissioner
isn't
broken
down
as
to
the
loan
size
and
so
from
our
own
portfolio.
As
we
look
inside
there,
we
have
stopped
making.
We
don't
make
smaller
loans,
but
we've
made
less
loans
outside
of
that
three
thousand
dollar
space
to
individuals
that
need
it,
and
so
I
think
that
while
they're
there's
definitely,
I
think
the
overwhelming
desire
to
be
for
consumer
transparency
is
very
important.
L
K
And
I
would
just
say
this
is
a
rate
cap
that
doesn't
mean
that
that's
what
the
rates
are
going
to
be
on
these
loans,
the
market
is
still
going
to
drive
that
they
can
be
lower
rates
based
upon
the
creditworthiness
of
the
borrower
and
the
market.
That's
going
on.
This
is
just
dealing
with
the
cap
on
those
rates.
J
Thank
you
representative
for
bringing
this
bill
and
thank
you
awesome
for
your
testimony.
Dustin.
I
consider
you
a
friend
you
hate
to
vote
against
your
your
friends.
You
know
I
I
have
one
main
in
in
my
district
and
you
know
I've
I've
been
through
it
and
I've
seen
people.
I
see
all
the
time,
they're
locals
it's
it's
providing
jobs
to
a
local
community.
As
for
the
bill
itself,
I
mean
we're
talking
on
loans
that
people
can't
otherwise
get
so
it's
kind
of
a
moot
point.
J
In
my
eyes
I
mean
when
we're
talking
about
everything
that
went
on
through
2020,
that's
still
going
on
unemployment,
people
struggling
to
pay
their
bills
and
we're
talking
debt,
consolidation,
home
repairs,
auto
repairs.
This
is
a
good
bill.
I
encourage
my
fellow
colleagues
to
vote
for
it.
I
will
be
today.
Thank
you.