True lender, earned wage access (EWA), and FAIR Exams Act are top priorities for the 119th Congress.

Washington, D.C. (January 6, 2025)– The American Fintech Council (AFC), the premier industry association representing responsible fintech companies and innovative banks, today welcomes the new members of the 119^th United States Congress and extends a special welcome to the newly appointed leaders and members of the House Financial Services Committee and the Senate Banking, Housing, and Urban Affairs Committee.

AFC looks forward to working with Chairman French Hill and Ranking Member Maxine Waters in the House, as well as Chairman Tim Scott and Ranking Member Elizabeth Warren in the Senate, to develop pragmatic solutions to the financial challenges facing the country and harness the countless opportunities these challenges pose. Their collective leadership will be essential in addressing critical issues and fostering innovation in the financial services sector. As the 119th Congress begins its work, AFC urges swift consideration and passage of three critical pieces of legislation:

●      True Lender Legislation: As previously introduced, the Modernizing Borrower Credit Opportunities Act would establish a clear federal legislative standard that explicitly clarifies financial institutions as the originators of loans in a bank-fintech partnership, and preserves the protections afforded to financial institutions under the Depository Institutions Deregulation and Monetary Control Act and National Bank Act. This legislation will promote consistency and clarity in lending markets and increase the availability of affordable credit across the nation, ensuring that state-chartered community banks can partner with fintech companies to offer much-needed responsible, safe and affordable credit to consumers.

●      The Earned Wage Access Consumer Protection Act: Thanks to Representative Bryan Steil's leadership, this bill would create a uniform framework to govern earned wage access (EWA) products, ensuring they remain accessible, consumer-friendly, and appropriately regulated. EWA is not a loan, and should not be regulated as such, and this bill would create an appropriate framework for this emerging industry.

●      The FAIR Exams Act: Championed by incoming Chairman French Hill, this bill will bring transparency and accountability to financial institution examinations, enhancing confidence in the regulatory process. The legislation would increase transparency and accountability in bank examinations and create a robust appeals process for legitimate disagreements between financial institutions and their regulators.

“We are at a pivotal moment for American consumers and families,” said Hayden Cole, Director of Federal Government Affairs at AFC. “The 119th Congress has a unique opportunity to advance policies that enhance financial security, expand access to financial services, and support the everyday financial needs of working families across the country. The swift consideration and passage of the critical pieces of legislation we identified will show the nation that the 119^th Congress is here to get things done.”

AFC looks forward to collaborating with both committees to promote policies that foster innovation, ensure consumer protection, and enhance the stability and integrity of our financial markets.

A standards-based organization, AFC is the premier trade association representing the largest financial technology (Fintech) companies and innovative banks offering embedded finance solutions. AFC’s mission is to promote 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.

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