ARLINGTON, Va. (June 26, 2025)—After Alaska Governor Mike Dunleavy vetoed the state’s SB39, legislation that would impose new restrictions on credit that would restrict access for Alaskan households and small businesses, Online Lenders Alliance Chief Executive Officer Andrew Duke issued the following statement:
“Governor Dunleavy made the right choice for Alaska consumers by vetoing this flawed legislation. The ability to access credit is the cornerstone of financial independence and stability. Unfortunately, SB39 would have taken away credit options and financial choices for Alaskan consumers and small businesses.”
Alaskans Need Access to Credit Options and Choices
- 19 percent of households in Alaska are unbanked or underbanked. (Source: FDIC)
- 31 percent of Alaska consumers are credit constrained, meaning that they are borrowers with limited credit history or poor/fair credit scores. (Source: ProsperityNow)
- Alaskans have the highest average credit card balance in the United States ($8,077) and the second-highest credit card utilization rate in the country. (Source: Experian*)
In 2021, Illinois Enacted a Bill Very Similar to SB39 and the Results Were Bad for Consumers:
- By 2024, lender licenses had decreased by 64 percent. (Source: OLA via Freedom of Information Act Request)
- An academic study found that the number of loans to subprime borrowers declined by 44 percent while increasing the average loan size to subprime borrowers by 40 percent. (Source: Credit for me but not for thee: The effects of the Illinois Rate Cap)
- A survey of Illinois borrowers showed that most of them had been unable to borrow money since enactment of the bill, with 80 percent of respondents wanting the option to return to their previous lender. (Source: Online Lenders Alliance)
*According to Experian, a consumer’s credit utilization ratio is the amount of revolving credit they’re using divided by the total amount of revolving credit they have available. It’s expressed as a percentage, and it can be an important factor in credit scores. In general, lower utilization rates can improve credit scores, which can in turn make it easier to secure additional credit with favorable terms.
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