In a letter, AFC congratulates Acting CFPB Director Russell Vought and outlines multiple key areas for regulatory clarity, consumer protection, and continued innovation

Urges reform to Payday Rule, Personal Financial Data Rights Rule, and other priorities

Washington, D.C. (March 17, 2025)– The American Fintech Council (AFC), the premier industry association representing responsible fintech companies and innovative banks offering embedded finance, today sent a letter to Russell Vought congratulating him on his confirmation as Director of the Office of Management and Budget (OMB) and thanking him for taking on additional responsibilities as Acting Director of the Consumer Financial Protection Bureau (CFPB) as Jonathan McKernan makes his way through Senate Confirmation. AFC’s letter calls for a swift return to a pragmatic and balanced regulatory approach at the CFPB that fosters responsible innovation while ensuring robust consumer protection.

“This moment presents a unique opportunity to shift focus at the CFPB and adjust the agency’s approach to be more balanced and pragmatic,” said Phil Goldfeder, CEO of the American Fintech Council. “We thank Acting CFPB Director Vought for taking the helm at the Bureau as we eagerly await Director McKernan. While the agency has at times strayed from its mission and embraced an overly ideological approach to policymaking, we believe the CFPB has an important role to play in the regulatory ecosystem by setting clear guidelines that support responsible innovation. We look forward to working on a regulatory framework that protects consumers and promotes the growth of innovative financial services that help people better manage their finances and improve their financial well-being.”

AFC’s letter advocates for a return to pragmatic regulation at the CFPB, underscoring the importance of creating a framework that fosters responsible innovation while ensuring strong consumer protection. In particular, AFC urged the CFPB to exempt 0% interest Buy-Now-Pay-Later loans from the Payday Rule, arguing that the Bureau’s 2017 rulemaking on the issue did not adequately account for impacts to the then-nascent BNPL industry, which has since become a popular choice for consumers seeking affordable short-term loans. AFC also recommends that the CFPB reengage its rulemaking process around the Personal Financial Data Rights rule to amend provisions related to secondary use of consumer data – allowing companies to cross-sell and engage in targeted advertising to alert consumers to products that best fit their financial needs.

Following a recent letter to Treasury Secretary Scott Bessent, AFC urges the CFPB to engage in formal legislative rulemaking to establish a clear, unified regulatory framework for Earned Wage Access (EWA) services. Finally, AFC identifies a need for further rulemaking on unfair and deceptive practices by credit repair organizations that prey on consumers to make frivolous and fraudulent claims and undermine trust in the financial system.

“As the financial services landscape evolves, it's essential that regulations adapt,” said Ian P. Moloney, SVP and Head of Policy and Regulatory Affairs at the American Fintech Council. “We look forward to collaborating with the CFPB to make targeted regulatory changes, such as exempting 0% interest Buy-Now-Pay-Later loans from the Payday Rule, refining the Personal Financial Data Rights Rule to allow for responsible data use, and strengthening regulations around credit repair organizations to prevent unfair and deceptive practices. These reforms are not only necessary to ensure fair market practices, but also to create an environment where both consumers and responsible innovators can thrive.”

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