Statement of the Executive Committee

House Financial Services Subcommittee hearing on COVID relief‍

The American Fintech Council (AFC) commends Chairman Perlmutter, Ranking Member Luetkemeyer, and members of the House Subcommittee on Consumer Protection and Financial Institutions for their focus on supporting American consumers during the COVID-19 crisis and the associated economic dislocation.

The American Fintech Council and its member institutions are committed to supporting American consumers, both as they struggle under economic hardship brought on by the COVID-19 pandemic and as we begin to rebuild from the damage wrought by the crisis.

AFC members are committed to offering responsible, affordable consumer credit at rates under 36% APR as defined by the Military Lending Act, and providing these important accommodations and safeguards to customers during this crisis. AFC’s member companies have implemented a range of proactive measures to help consumers impacted by COVID-19. This includes providing impacted borrowers with forbearance, loan extensions, and other repayment flexibility; changes to credit bureau reporting; waiving of late fees; and educational resources.

Representative Stephen Lynch has introduced legislation, the Consumer Protection and Relief Act (HR 1151) to help the many consumers that continue to need access to responsible credit and support for the hardest hit individuals through debt relief as a result of the COVID Pandemic. The crisis is hitting LMI communities disproportionately hard and the Consumer Protection and Relief Act will provide near-term relief to help the communities most impacted by utilizing CDFIs as a critical intermediary during the economic recovery. The American Fintech Council strongly supports Representative Lynch’s efforts to provide support for those hardest hit by COVID-19.

Member institutions have also stepped up to offer assistance to hardworking families tirelessly striving to keep their small businesses open, especially in underserved communities. AFC members have actively looked to be a resource to all eligible borrowers in need, including by partnering with elected officials to offer public webinars on stimulus programs, helping to ensure the smallest and most vulnerable business had access to the Paycheck Protection Program. Pandemic or not, the AFC will continue to look to for ways to create a more inclusive and resilient financial system by providing resources to those not served or under-served by advancing the policy goals set out on our website, and driving the adoption of responsible lending practices including upholding a 36% Military Lending Act APR cap and the practice standards of the Small Business Borrowers’ Bill of Rights.

The American Fintech Council looks forward to working further with Chairwoman Waters, the House Financial Services Committee, and this Subcommittee to support consumers and help rebuild their economic wellbeing.