The American Fintech Council (AFC) has sent a letter to Russell Vought, congratulating him on his confirmation as Director of the Office of Management and Budget and thanking him for assuming additional responsibilities as Acting Director of the Consumer Financial Protection Bureau (CFPB). The letter calls for a return to pragmatic regulation at the CFPB that supports responsible innovation while ensuring consumer protection.
Phil Goldfeder, CEO of the AFC, stated, "This moment presents a unique opportunity to shift focus at the CFPB and adjust the agency’s approach to be more balanced and pragmatic." He expressed gratitude to Acting CFPB Director Vought for leading the Bureau and emphasized the importance of setting clear guidelines that support responsible innovation.
The AFC's letter highlights several areas for reform. It urges exemptions for 0% interest Buy-Now-Pay-Later loans from the Payday Rule, citing that previous rulemaking did not consider impacts on this now-popular loan option. The AFC also recommends reengaging with rulemaking around Personal Financial Data Rights to allow companies to use consumer data responsibly for cross-selling and targeted advertising.
Additionally, following communication with Treasury Secretary Scott Bessent, the AFC encourages formal legislative rulemaking for Earned Wage Access services. It also identifies a need for further regulations on unfair practices by credit repair organizations.
Ian P. Moloney, SVP and Head of Policy and Regulatory Affairs at AFC, remarked, "As the financial services landscape evolves, it's essential that regulations adapt." He emphasized collaboration with the CFPB to make necessary regulatory changes that ensure fair market practices while fostering an environment where consumers and innovators can thrive.
The AFC is a trade association representing fintech companies and innovative banks offering embedded finance. Its mission is to promote a transparent financial system by supporting responsible innovation in financial services.