Protect Americans’ Liberty to Select Debt Relief Options

The Washington, D.C. area is filled with trade associations. They lobby for everything under the sun.

Do you root for a team? The Sports Fan Coalition has your back. It was established to advocate for more widespread TV coverage and affordable seating. The group notes that “The fans who actually buy the tickets, watch the games, wear the merchandise, and make the system work, however, don’t have such representation.” It vows to provide this representation and more power to it. Trade associations are often a genuine force for good when it comes to tackling big challenges.

Of course, trade associations can work in the other direction, too. Some help the big guy keep the little guy down.

Take the American Financial Services Association (AFSA). AFSA has emerged as one of the loudest anti-consumer choice voices in the conversation around debt relief on Capitol Hill. While acting as if it has consumers’ best interests in mind, AFSA is working to convince lawmakers to limit well-regulated and effective debt relief options for average Americans simply because debt relief doesn’t align with its high-interest lender members' pecuniary interests. 

Most recently, in July 2026 congressional testimony, AFSA CEO Celia Winslow advocated for the Debt Settlement Consumer Disclosure Act, a bill that would impose numerous disclosures and requirements that are duplicative of consumer protections already mandated by the FTC’s Telemarketing Sales Rule. This should come as no surprise from an organization that has also fought to roll back financial protections for servicemembers and military families.

Earlier this year, AFSA also opposed protections for financially vulnerable survivors of domestic violence and economic abuse. In 2026, AFSA sent advocacy letters to state legislators in Maryland, Vermont, and Pennsylvania, urging them to weaken legislation designed to help those victims. They sought to impose additional requirements before victims could qualify for debt relief.

AFSA’s opposition to responsible, regulated debt relief programs makes clear that it is not a trusted advocate for consumers. In fact, quite the opposite. Debt relief programs are a good option for Americans who are facing growing financial pressure from inflation, rising interest rates, and unexpected hardships. They reduce enrolled debt by an average of approximately 30 percent after fees on settled accounts and help consumers negotiate and settle unsecured debts for less than the full balance owed. 

Opposing debt relief, then, makes little sense.

For many Americans, falling into debt can become a lifelong problem. People can spend decades making good financial decisions and living within their means, only to suddenly fall into debt because of a health concern, car accident, or act of God. They take out a loan to get through the crisis, only to find themselves with debt they may struggle for years to repay. 

Debt relief programs are often a useful exit ramp for these situations. They are less extreme than bankruptcy and can help consumers get back on track. 

AFSA doesn’t have much credibility here. While the organization frequently frames its positions as advancing consumer protection and “access to credit,” its advocacy consistently prioritizes the interests of its high-interest lender members over those of financially vulnerable consumers. 

In their recent congressional testimony, AFSA CEO Celia Winslow urged consumers to pursue credit counseling services that repay creditors in full while criticizing debt relief programs that reduce consumer repayment obligations. That preference is particularly telling given that many nonprofit credit counselors are partly funded by the very creditors that own the debt through “fair share” arrangements.

Organizations seeking to shape consumer finance policy should be evaluated not only by what they say publicly but also by whose interests they represent and their broader advocacy record. AFSA is not a neutral voice in the consumer finance debate. It represents banks, finance companies, and other high-interest creditors whose financial interests are directly affected when consumers pursue debt relief.

Debt relief is a legitimate, regulated financial solution that helps consumers struggling with debt regain financial stability. Discussions about debt relief should center on ensuring that people facing financial hardship have access to effective, well-regulated options – not preserving a system that primarily benefits creditors who already hold significant power over borrowers.

Washington should be skeptical of efforts to restrict those options under the guise of consumer protection. Real consumer protection means giving Americans in financial distress more viable paths out of debt, not fewer.

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