Federal:

The Honorable Lisa Murkowski
United States Senate
522 Hart Senate Office Building
Washington, DC 20510

The Honorable Chris Coons
United States Senate
218 Russell Senate Office Building
Washington, D.C. 20510

Re: Letter in Support of the Ending Scam Credit Repair Act

Dear Senators Murkowski and Coons,

On behalf of the American Fintech Council (AFC),  I write to express our support for the introduction of S. 4144, the Ending Scam Credit Repair Act (the Act), in the United States Senate. AFC was a strong supporter of the House bill brought forward by Representatives Young Kim and Sarah McBride, and commends your introduction of this companion bill in the Senate.

A standards-based organization, the American Fintech Council (AFC) is the largest and most diverse trade association representing financial technology (fintech) companies and innovative banks. On behalf of over 150 member companies and partners, AFC promotes a transparent, inclusive, and customer-centric financial system by supporting responsible innovation in financial services and encouraging sound public policy. AFC members foster competition in consumer finance and pioneer products to better serve underserved consumer segments and geographies.

The responsible innovation and development of a more inclusive financial services industry that AFC and its members seek requires that all participants in the ecosystem operate in a forthright and transparent manner. In no circumstances should an industry participant, innovative or not, be allowed to deceive consumers through their practices or lack of proper disclosures. Unfortunately, the credit repair industry has long been plagued by organizations that exploit legal loopholes and harmful practices to deceive consumers, particularly those with low credit scores, by charging large upfront fees based on false promises of debt reduction. These predatory practices undermine consumer trust and negatively impact the overall health of the American economy.

AFC has consistently advocated for approaches that support responsible innovation while protecting consumers from deceptive financial practices by actors including credit repair organizations. In our March 2025 letter to Consumer Financial Protection Bureau (CFPB) Acting Director Vought, AFC recommended that the Bureau reengage its regulations regarding credit repair organizations and mandate that claims made on behalf of consumers by credit repair organizations be clearly and conspicuously identified for lenders receiving these claims in order to both ensure that both consumers and lenders are not subjected to the unfair and deceptive practices pursued by credit repair organizations.  This recommendation followed from previous engagement including several meetings with representatives from the CFPB and collaboration with the Consumer Data Industry Association’s Metro 2 Task Force. However, Congressional action remains essential to effectively address the root causes of the predatory behaviors of credit repair organizations directed towards consumers.

If passed, the Act would mark a major step forward for consumers and the financial services industry. Specifically, by eliminating the loopholes that have allowed predatory credit repair practices to flourish, the Act will contribute to a more transparent and fair financial system. Further, the creation of explicit requirements regarding the communication of credit disputes submitted by or on behalf of a credit repair organizations to furnishers would ensure that all participants of the financial services industry can effectively manage the disputes they receive.

This bipartisan effort reflects pragmatic policymaking and exemplifies a steadfast commitment to fostering transparency and continuing a strong, collaborative tone for the 119th Congress. AFC supports your efforts on this legislation and encourages Congress to take action that will enhance consumer protections by addressing fraudulent practices within the credit repair industry. AFC believes modernization of the nation’s credit reporting ecosystem will empower consumers and promote responsible innovation while ensuring transparency and curbing fraudulent practices. AFC appreciates your leadership on this important issue and offers our support to advance this legislation.

Sincerely,

Ian P. Moloney
Chief Policy Officer
American Fintech Council

CC:

The Honorable Young Kim, United States House of Representatives
The Honorable Sarah McBride, United States House of Representatives

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[1] AFC’s membership spans technology platforms, non-bank lenders, banks, payments providers, loan servicers, credit bureaus, and personal financial management companies.
[2] American Fintech Council, “Letter in Support of the Ending Scam Credit Repair Act” (Jan. 21, 2025), available at https://fintechcouncil.org/advocacy/federal-afc-letter-in-support-of-the-ending-scam-credit-repair-act.
[3] American Fintech Council, “Letter to OMB Director Vought on CFPB Policy Priorities (Mar. 13, 2025), available at https://fintechcouncil.org/advocacy/federal-afc-letter-to-omb-director-vought-on-cfpb-policy-priorities.

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