AFC calls for regulatory clarity and preservation of responsible bank-fintech partnerships under Washington’s Predatory Loan Prevention Act

Olympia, WA (October 9, 2025) – The American Fintech Council (AFC), the premier industry association representing responsible fintech companies and innovative banks, submitted additional comments to the Washington Department of Financial Institutions (DFI) on proposed amendments to the Predatory Loan Prevention Act (PLPA). AFC commends DFI for its consideration of comments submitted in April and clarification of key elements of the rulemaking, but urges the Department to make critical changes to would preserve access to safe, affordable, and transparent credit for Washington consumers – particularly those in low- and moderate-income communities.

“Protecting consumers and ensuring access to responsible credit are not mutually exclusive, and Washington’s rules must reflect a balanced, pragmatic approach that ensures access to safe credit tools,” said Phil Goldfeder, CEO of the American Fintech Council. “Washington families deserve access to fair and transparent financial products, not policies that drive them towards predatory alternatives.”

The letter reiterates AFC’s longstanding support for a 36 percent interest rate cap, a nationally supported standard that balances consumer protection with financial inclusion. AFC’s analysis shows that Washington’s current 25 percent cap has already reduced lending volume and resulted in tens of millions of dollars in lost access to credit. AFC’s letter also warns that DFI’s application of the Predominant Economic Interest (PEI) and Totality of Circumstances (TOC) tests remains legally tenuous, and improper implementation could violate federal preemption principles and further restrict responsible lending across the state.

“Regulatory clarity is essential to maintain a healthy, competitive lending market,” said Ian P. Moloney, SVP and Head of Policy and Regulatory Affairs at the American Fintech Council. “Without thoughtful calibration of these tests, responsible bank-fintech partnerships will continue to pull back, leaving Washington borrowers with fewer and more expensive credit options.”

AFC remains committed to working with DFI and other state regulators to craft pragmatic, effective, and consumer-focused rules that enable responsible innovation while protecting borrowers from predatory practices.

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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