The American Fintech Council (AFC), the premier industry association representing responsible fintech companies and innovative banks, has urged the US Senate to expand access to responsible and affordable credit in a new letter.
The American Fintech Council sent a letter to the Senate Committee on Banking, Housing, and Urban Affairs announcing strong support for the Credit Access and Inclusion Act, pragmatic legislation led by committee Chairman Tim Scott (R-SC) and supported by several Committee members.
The legislation would expand access to responsible and affordable credit by enabling the use of alternative payment data (such as rent, utilities, phone, and internet bills) in consumer credit reporting.
“Too many Americans remain ‘credit invisible’ simply because they haven’t accessed traditional financial products,” explained AFC CEO Phil Goldfeder. “These individuals pay their rent, utility bills, and phone plans on time every month – yet these responsible and timely payments go unrecognised in our credit system.
“The Credit Access and Inclusion Act is a pragmatic, innovation-driven policy that will responsibly bring more Americans into the financial mainstream by more accurately accounting for how people manage their money.”
In the letter, AFC praised the bill for offering a commonsense solution for millions of underserved Americans who manage their money effectively but still struggle to access credit.
Giving millions access back to essential opportunities
An estimated 26 million Americans currently have no credit file, and another 19 million have unscorable credit histories. These individuals are left shut out from essential opportunities like homeownership, auto loans, and higher education financing.
Recognising this issue, AFC has long advocated for the responsible use of ‘alternative data’– non-traditional payment records that reflect a fuller and more accurate picture of financial behaviour. The legislation would enable landlords, utility providers, and telecom companies to report on-time payments to credit reporting agencies, helping consumers build credit histories and gain access to financial products at fair rates.
“This bill reflects years of rigorous research and consensus between critical stakeholder groups that incorporating rental, utility, and telecom payments into credit reporting can safely expand access to credit,” said Ian P. Moloney, SVP and head of policy and regulatory affairs at AFC. “By responsibly updating the Fair Credit Reporting Act, the Credit Access and Inclusion Act will build on the activities pursued by industry leaders to capture and use this data to improve economic mobility while maintaining strong consumer protections.”
A standards-based organisation, AFC aims to promote a transparent, inclusive, and customer-centric financial system by supporting responsible innovation in financial services, as well as encouraging sound public policy.
