Congress Holds Fintech Hearing; 77 Million in Collections Left Out of Discussion

This week a House subcommittee held a hearing to better understand the how to balance the proliferation of financial technology (“fintech”) with consumer protection. As with all of the conversations, conferences and symposia regarding financial innovation, the discussion was focused on credit. However 30% of the adult population of the United States has at least one past due account. Yet, there is no discussion of real innovation on that side of the equation.

Blaine Luetkemeyer (R-NO), who chairs the Subcommittee on Financial Institutions and Consumer Credit, set the context. He noted that the universe of technology is evolving on a nearly daily basis, and has revolutionized the way consumers make payments and interact with financial services companies. He said,

“From online lending and payment companies to blockchain and cryptocurrencies, advances in financial technology are changing the way financial markets work and how consumers access credit. With greater understanding of fintech’s capabilities, the Financial Services Committee and Congress can better create an environment that fosters certainty and responsible innovation while maintaining consumer protections.”