The American Fintech Council (AFC) has expressed its strong support for the Ending Scam Credit Repair Act, a bipartisan bill introduced by Representatives Young Kim (R-CA) and Sarah McBride (D-DE). The legislation aims to eliminate deceptive credit repair practices that negatively impact consumers and erode trust in the financial system.
Phil Goldfeder, Chief Executive Officer of the AFC, emphasized the importance of this measure. "The Ending Scam Credit Repair Act is a much-needed measure to protect consumers, particularly those who are struggling financially, from predatory credit repair organizations," he stated. Goldfeder noted that the legislation would address loopholes allowing exploitative practices and contribute to a fairer financial system.
Predatory credit repair organizations often charge high upfront fees based on false promises of debt relief, primarily affecting individuals with low credit scores. These practices harm vulnerable communities and exacerbate economic inequality. The proposed bill seeks to close these loopholes and enhance transparency in credit dispute communications.
Ian P. Moloney, Senior Vice President and Head of Policy and Regulatory Affairs at AFC, highlighted the potential benefits if the legislation is enacted. "If enacted, this legislation will strengthen consumer protections and enhance transparency within the financial system," he said. Moloney added that addressing fraudulent credit repair practices would safeguard consumers' financial health while promoting responsible innovation in finance.
AFC views this bipartisan effort as an example of pragmatic policymaking focused on consumer protection. The council urges swift Congressional action to pass the bill to protect consumers from harmful financial practices.
As a standards-based organization, AFC represents major fintech companies and innovative banks offering embedded finance solutions. Its mission includes promoting transparency and inclusivity in financial services while supporting responsible innovation through sound public policy.