The American Fintech Council (AFC) has formally requested Virginia Governor Glenn Youngkin to veto Senate Bill 1252. According to the AFC, this legislation could limit access to responsible credit options for Virginians and impose unnecessary burdens on community banks.
Phil Goldfeder, CEO of the AFC, expressed concerns about the bill's potential impact. "This legislation threatens to roll back years of progress on increasing financial inclusion and economic justice in Virginia," he stated. He further noted that if passed, SB 1252 would restrict hundreds of thousands of Virginians from accessing safe credit products, forcing them toward more expensive alternatives. Goldfeder emphasized that responsible fintech companies have worked with regulators to expand financial access in Virginia and urged Governor Youngkin to veto the bill.
The letter from AFC highlighted that in 2024 alone, its members provided over $800 million in credit access to more than 235,000 Virginians. These loans assist consumers in managing debt and covering emergency expenses. The passage of SB 1252 could potentially cut off many consumers from these financial services.
Ian P. Moloney, SVP and Head of Policy and Regulatory Affairs at AFC, pointed out that the bill creates an "unclear and legally questionable policy framework." He warned about potential legal disputes and increased implementation challenges for Virginia’s banking regulator.
Additionally, Ashley Urisman, Director of State Government Affairs at AFC, remarked on the importance of maintaining financial inclusion without stifling responsible lenders through reactionary policymaking. "This bill would drive responsible providers out of the market and leave Virginians with fewer and riskier options," she said.
AFC describes itself as a standards-based organization representing major fintech companies and innovative banks offering embedded finance solutions. Its mission is to support a transparent financial system through responsible innovation while fostering competition in consumer finance.