AFC emphasizes decades of settled federal standards and asks court to preserve uniform treatment of seller’s points under Regulation Z

Virginia Attorney General’s novel and legally tenuous interpretations of TILA would severely harm access to safe and affordable credit

Richmond, VA (May 6, 2026) – The American Fintech Council (AFC), the largest industry association representing both responsible fintech companies and innovative banks, filed an amicus brief in Commonwealth of Virginia v. William Jayson Waller et. al, pending in the U.S. District Court for the Eastern District of Virginia. The brief urges the Court to uphold the long-standing Truth in Lending Act (TILA) and the Regulation Z framework governing the definition of “finance charge,” long established in all cases for more than 40 years.

“The Truth in Lending Act works because it is consistent and grounded in clear federal standards that everyone can rely on,” said Phil Goldfeder, CEO of the American Fintech Council. “For decades, creditors have structured disclosures and consumer financing programs around the clear rule that seller’s points are excluded from finance charges. Disrupting that framework through litigation would create uncertainty, weaken comparability, and ultimately harm the very transparency the Truth in Lending Act was designed to promote.”

AFC emphasizes that TILA and Regulation Z were structured to ensure clear, standardized credit disclosures that allow consumers to compare credit terms across lenders. Under that framework, seller’s points are excluded from the definition of “finance charge.” This reflects a deliberate regulatory decision to adopt a uniform rule rather than evaluate on a case-by-case basis whether those amounts may indirectly affect pricing or be passed through to consumers. The consumer credit industry has relied on this approach for decades, with creditors structuring financing programs and disclosures to ensure strict compliance with Regulation Z’s categorical treatment of seller’s points. Altering this well-established standard through litigation will introduce uncertainty into a system designed for uniformity, weakening the predictability that creditors depend on and the consistency consumers expect when comparing credit options. In turn, this would have a broad and significantly negative impact on the consumer lending space.

“The Truth in Lending Act and its implementing regulation has been settled law for decades. The industry relies on Regulation Z not just as guidance, but as a foundational compliance framework that ensures consistency across markets,” said Ian P. Moloney, Chief Policy Officer at the American Fintech Council. “To affirm the novel, legally tenuous arguments posed by the Virginia Attorney General would upend these settled expectations. The seller’s points rule is a clear example of a long-settled interpretation that allows responsible providers to innovate while maintaining standardized disclosures. Undermining that certainty would introduce unnecessary risk into well-functioning consumer credit markets.”

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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