Letter to House Financial Services Committee emphasizes the need for alternative data integration and targeted fraud-detection tools to expand financial inclusion and safeguard consumers

Washington, DC (June 30, 2026) – The American Fintech Council (AFC), the largest industry association representing both responsible fintech companies and innovative banks, sent a letter to the leadership of the House Committee on Financial Services expressing strong support for two pieces of legislation: the Credit Access and Inclusion Act (H.R. 5402) and the STOP Payments Fraud Act (H.R. 9331). AFC commended Representatives Young Kim and Janelle Bynum for their bipartisan leadership on the Credit Access and Inclusion Act, and Representative Kim for her leadership on the STOP Payments Fraud Act, recognizing their efforts to modernize consumer finance statutes to better serve and protect American consumers.

“Modernizing our financial system requires pragmatic policy solutions that both expand economic mobility for underserved families and establish robust safeguards against sophisticated fraud rings,” said Phil Goldfeder, CEO of the American Fintech Council. “Through responsibly integrating alternative data and giving institutions the tools to stop fraudulent transfers, these bills present an innovative approach to bettering Americans’ financial futures. We thank Representatives Kim and Bynum for their bipartisan leadership and thoughtful approach to modernizing consumer protection statutes. ”

In its letter, AFC highlights the critical need for the Credit Access and Inclusion Act (H.R. 5402) to address the 26 million Americans considered “credit invisible” and the additional 19 million whose scores are treated as “unscoreable”. The bill amends the Fair Credit Reporting Act to clarify that property owners, the Department of Housing and Urban Development, and utility and telecommunications providers may furnish consumer payment data, such as rent and utility payments, to consumer reporting agencies. This common-sense measure expands credit histories and unlocks vital financial opportunities while incorporating thoughtful safeguards, including consumer opt-out provisions and protections for individuals meeting the terms of a payment plan or arrearage program.

AFC also details its support for the STOP Payments Fraud Act (H.R. 9331) to curb the rising scale of payments fraud. The bill addresses a regulatory gap within the Expedited Funds Availability Act that frequently forces depository institutions to release funds before a proper investigation can be completed. H.R. 9331 permits receiving institutions to temporarily delay the availability of a check or wire transfer when there is a reasonable suspicion of fraud based on specific indicators. It separately allows institutions to apply heightened availability exceptions to accounts in circumstances associated with greater fraud risk, for a period not to exceed 60 days per occurrence. The bill pairs this operational flexibility with robust consumer protections, including mandatory written notices, a prohibition on holds based on any class of transactions or persons, and rules to be jointly prescribed by the Federal Reserve Board and the CFPB.

“Combating fraud and promoting responsible innovation are cross-cutting aspects of ensuring a safe, sound, and inclusive financial services industry,” said Ian P. Moloney, Chief Policy Officer of the American Fintech Council. “By integrating rental and utility payment data to build credit and providing targeted tools to intercept fraud, these legislative measures strike the right balance between expanding consumer choice and maintaining robust financial safeguards. AFC is ready to engage with the Committee, the Federal Reserve, and the CFPB to support the passage and implementation of both bills.”

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.

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