Applauds the introduction of the Ending Scam Credit Repair Act, a key step toward protecting consumers from predatory credit repair practices

Washington, D.C. (January 21, 2025) – The American Fintech Council (AFC), the premier industry association representing responsible fintech companies and innovative banks, announced its strong support for the bipartisan legislation titled Ending S cam Credit Repair Act, introduced by Representatives Young Kim (R-CA) and Sarah McBride (D-DE). The bill seeks to eliminate deceptive credit repair practices that harm consumers and undermine trust in the financial system.

“The Ending Scam Credit Repair Act is a much-needed measure to protect consumers, particularly those who are struggling financially, from predatory credit repair organizations,” said Phil Goldfeder, Chief Executive Officer of the American Fintech Council. “This legislation will close loopholes that have enabled exploitative practices and help create a fairer and more transparent financial system.”

Predatory credit repair organizations often exploit legal loopholes to charge consumers high upfront fees based on false promises of debt relief, disproportionately targeting individuals with low credit scores. These deceptive practices harm vulnerable communities, erode trust in the financial system, and worsen economic inequality. The new bill addresses these concerns by eliminating loopholes and requiring greater transparency in credit dispute communications. AFC has long championed initiatives to modernize the credit reporting system, including engaging with the Consumer Financial Protection Bureau (CFPB) and participating in the Consumer Data Industry Association’s Metro 2 Task Force.

“If enacted, this legislation will strengthen consumer protections and enhance transparency within the financial system,” said Ian P. Moloney, SVP and Head of Policy and Regulatory Affairs at AFC. “By addressing the root causes of fraudulent credit repair practices, the Ending Scam Credit Repair Act would safeguard consumers’ financial health while fostering responsible innovation in the financial sector.”

AFC fully supports this bipartisan effort as an example of pragmatic policymaking that prioritizes consumer protection and sets a strong collaborative tone for the 119th Congress. AFC urges swift Congressional action to pass this bill and protect consumers from harmful financial practices.

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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