Recently passed in the legislature, Senate Bill 1252 will harm consumers, create legal uncertainty, and burden already struggling community banks

Washington, D.C. (February 24, 2025) – The American Fintech Council (AFC), the premier industry association representing responsible fintech companies and innovative banks, today sent a letter to Virginia Governor Glenn Youngkin urging him to veto Senate Bill 1252, warning that the legislation would severely restrict access to responsible credit for Virginians and place unnecessary burdens on community banks. AFC emphasized that the bill’s passage would create legal uncertainty, stifle innovation, and limit financial opportunities for consumers who rely on safe, transparent credit options.

“This legislation threatens to roll back years of progress on increasing financial inclusion and economic justice in Virginia,” said Phil Goldfeder, CEO of the American Fintech Council. “SB 1252 would cut off hundreds of thousands of Virginians from safe and responsible credit products, pushing them toward more costly and less regulated alternatives. Responsible fintech companies and innovative banks have worked collaboratively with regulators to expand financial access in Virginia, but this bill would undo that progress and harm consumers without providing any clear consumer protection benefits. We strongly urge Governor Youngkin to veto this bill to protect Virginia families and preserve competition in the state’s financial services market.”

The letter highlights that in 2024 alone, AFC members provided responsible credit to more than 235,000 Virginians, totaling over $800 million in credit access. These loans help consumers consolidate debt, manage emergency expenses, and make essential purchases. If SB 1252 is signed into law, many of these consumers will lose access to these responsible credit options, creating unnecessary financial hardship.

“SB 1252 not only limits consumer choice but also creates an unclear and legally questionable policy framework,” said Ian P. Moloney, SVP and Head of Policy and Regulatory Affairs at AFC. “This bill lacks clarity on how responsible fintech companies and their bank partners can operate in Virginia, leading to costly implementation challenges for Virginia’s banking regulator, potential legal disputes, and a waste of government resources and Virginia taxpayer dollars. Rather than creating uncertainty, policymakers should focus on clear and consistent regulations that ensure consumer protection while allowing responsible lenders to serve the market.”

The legislation also raises concerns for AFC about the burden it places on the Virginia Bureau of Financial Institutions, requiring significant government resources to implement and enforce its ambiguous requirements. AFC argues that the bill’s unintended consequences could result in unnecessary taxpayer expenses and increased regulatory confusion.

“We cannot allow financial inclusion to be stifled by reactionary policymaking that fails to account for the needs of consumers or the practices of responsible lenders,” said Ashley Urisman, Director of State Government Affairs at AFC. “This bill would drive responsible providers out of the market and leave Virginians with fewer and riskier options. AFC stands ready to work with Virginia lawmakers and regulators on real solutions that expand financial opportunity while ensuring strong consumer protections.”

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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