Smarter Decisioning, Less FrictionAB 2350 would restrict important financial options for hundreds of thousands of California renters

Sacramento, CA (April 6, 2026) – The American Fintech Council (AFC), the largest industry association representing both responsible fintech companies and innovative banks, submitted testimony to the California State Assembly Committee on Banking and Finance in opposition to Assembly Bill 2350. The legislation would effectively ban flexible rent payment solutions in California, removing a widely used financial tool that helps renters better manage their largest monthly expense and stay current on housing payments.

In its testimony, AFC warned that the bill would eliminate a financial service already safely used by nearly 400,000 Californians to pay more than $2.1 billion in rent. Eliminating this service would push renters toward higher-cost alternatives such as late fees, overdraft charges, and payday loans. AFC emphasized that flexible rent payment solutions help address a structural challenge in the rental market: many workers are paid weekly or biweekly, yet rent is due in full at the start of the month, creating recurring cash flow pressure that can lead to penalties or reliance on expensive short-term credit.

“California renters are already navigating rising housing costs and an affordability crisis, and removing flexible rent payment solutions would take away a practical tool that helps families stay current on their rent and avoid unnecessary fees,” said Phil Goldfeder, CEO of the American Fintech Council. “State lawmakers should not eliminate solutions that help working families manage cash flow and remain in good standing with their landlords.”

The testimony also noted that flexible rent payment solutions offered by AFC members are already subject to federal and state oversight, including the Truth in Lending Act and Regulation Z, contrary to claims in AB 2350 that these services operate outside meaningful regulatory frameworks. Rather than banning these solutions, AFC urged lawmakers to pursue a pragmatic regulatory approach that establishes clear standards for transparency, consumer protections, and product design, ensuring responsible providers can continue serving renters while strengthening oversight and accountability across the market.

Recent research from Flex, an AFC member, underscores the importance of these solutions for renters: their 2026 Financial Health Survey and a separate causal study of nearly 10,000 applicants found that most renters face frequent financial shocks and have very limited savings, yet access to rent-splitting measurably reduced financial stress.

“California policymakers have an opportunity to establish clear standards that protect renters from unexpected fees and financial strain,” said Ian P. Moloney, Chief Policy Officer at the American Fintech Council. “A thoughtful regulatory framework that sets clear guardrails and strong consumer protections would better support California renters while preserving access to responsible financial tools that promote housing stability.”

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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