Broad group of financial services, business, and consumer reporting organizations calls for targeted reforms to curb abusive litigation while preserving strong consumer protections

Washington, D.C. (December 16, 2025) – The American Fintech Council (AFC), the premier industry association representing responsible fintech companies and innovative banks, joined a broad coalition of national trade associations urging Congress to pass the FCRA Liability Harmonization Act (H.R. 5775), bipartisan legislation that would align the Fair Credit Reporting Act (FCRA) with other federal consumer protection laws by establishing reasonable limits on statutory damages, eliminating punitive damages, and capping attorney’s fees. The coalition letter highlights growing concerns about abusive and meritless litigation that undermines the FCRA’s core purpose while increasing costs for consumers.

“FCRA plays a critical role in protecting consumers and ensuring confidence in the financial system, but today’s litigation environment is increasingly driven by tactics that exploit loopholes rather than advance consumer interests,” said Phil Goldfeder, CEO of the American Fintech Council. “Targeted reforms like those in the FCRA Liability Harmonization Act will curb abusive lawsuits, reduce uncertainty for businesses, and keep costs down for consumers – all while preserving every meaningful protection the law provides. AFC is proud to stand with this broad and diverse coalition calling on Congress to act.”

The letter explains that FCRA is currently an outlier among federal consumer protection statutes; unlike ECOA, EFTA, TILA, and FDCPA, FCRA allows for uncapped statutory and punitive damages, creating powerful incentives for meritless lawsuits and large attorneys’ fee awards. These dynamics often push community financial institutions, small businesses, and employers to settle cases regardless of merit, diverting resources away from responsible innovation, compliance investments, and consumer-facing services.

"This legislation strikes a critical balance by preserving consumers' ability to seek meaningful redress while curbing abusive litigation tactics that exploit an outdated law," said Dan Smith, Consumer Data Industry Association (CDIA) President and CEO. "We're proud to have united such a broad coalition of organizations around this important reform effort."

The coalition emphasizes that the proposed reforms would preserve consumers’ ability to file individual and class action lawsuits and secure appropriate compensation, including full recovery of reasonable attorneys’ fees and litigation costs. At the same time, the bill would strengthen confidence in consumer reporting by promoting legal clarity, reducing frivolous claims, and ensuring that companies can focus resources on accuracy, security, and consumer service improvements.

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