The American Fintech Council (AFC) has officially endorsed the Credit Access and Inclusion Act, a piece of legislation aiming to widen access to credit by incorporating alternative payment data, such as rent and utility bills, into consumer credit reports. This legislation was led by Senate Committee Chairman Tim Scott, supported by several committee members, and is addressed to the Senate Committee on Banking, Housing, and Urban Affairs.
AFC CEO Phil Goldfeder expressed concern over the challenges faced by Americans branded as "credit invisible" due to their limited interaction with traditional financial products. Goldfeder noted, "Too many Americans remain ‘credit invisible’ simply because they haven’t accessed traditional financial products. These individuals pay their rent, utility bills, and phone plans on time every month – yet these responsible and timely payments go unrecognized in our credit system." He believes the legislation provides a pragmatic solution for these individuals by offering a more comprehensive representation of their financial behavior.
The Credit Access and Inclusion Act aims to enable landlords, utility companies, and telecom service providers to report timely payments to credit agencies, helping consumers establish and enhance their credit histories. According to AFC, an estimated 26 million Americans are currently without a credit file, while another 19 million have unscorable credit histories, limiting their access to essential financial opportunities including home ownership and education financing.
Ian P. Moloney, AFC's Senior Vice President and Head of Policy and Regulatory Affairs, emphasized the rigorous research and stakeholder consultation that has shaped the legislation. "This bill reflects years of rigorous research and consensus between critical stakeholder groups that incorporating rental, utility, and telecom payments into credit reporting can safely expand access to credit," he stated. Moloney affirmed that the act complements industrial efforts to utilize data to advance economic mobility, with a commitment to maintaining consumer protections.
As a standards-based organization, AFC represents top fintech companies and banks advancing embedded finance solutions. Its mission is to advocate for a transparent, inclusive, and consumer-focused financial system, promoting responsible innovation and public policies that extend financial services to underserved populations. AFC's support for the bill underscores its commitment to fostering competition in consumer finance and developing products that serve marginalized consumer segments.
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