AFC Urges Colorado to Refine Automated Decision-Making Rules to Protect Credit Access

The American Fintech Council (AFC) has submitted supplemental comments to the Colorado Department of Law regarding the implementation of the Colorado Automated Decision-Making Technology (ADMT) Act. For fintech professionals, this represents a critical effort to align emerging state-level AI regulations with existing federal frameworks to prevent duplicative compliance burdens that could restrict credit access.

What was announced

The American Fintech Council provided testimony and supplemental comments concerning the interim draft regulations for Senate Bill 26-189, also known as the Colorado Automated Decision-Making Technology (ADMT) Act. The submission, led by Ashley Urisman, Director of State Government Affairs at the American Fintech Council, outlines specific recommendations to ensure consumer protections do not inadvertently create operational inefficiencies for financial institutions.

A primary focus of the AFC’s testimony is the proposed human review framework. The council cautions that requiring lenders to independently reconsider every underwriting determination could lead to disparate treatment and undermine the consistency required by existing fair lending programs. Instead, the AFC advocates for a streamlined review process, applicable in cases where a consumer has not identified a technological error, materially inaccurate information, or new evidence that would reasonably change the credit outcome.

Furthermore, the AFC is calling for the adoption of objective, risk-based standards. The council argues that regulatory oversight should be reserved for "consequential determinations" rather than routine administrative functions. Under this proposal, automated systems that execute predetermined and consistently enforced eligibility criteria without manual intervention should not be classified as exercising independent judgment. The AFC suggests that failing to make this distinction risks misallocating compliance resources toward low-risk activities, potentially diluting the effectiveness of consumer protections.

"While the revised proposal reflects certain improvements, it is essential that the final regulations avoid duplicative requirements that will limit access to safe and affordable credit for Colorado families."

Phil Goldfeder, CEO of the American Fintech Council

The companies involved

The American Fintech Council (AFC) is the primary industry association representing the interests of responsible fintech companies and innovative banks. It positions itself as a bridge between the technology-driven financial sector and regulatory bodies, advocating for policies that promote financial inclusion and consumer protection through innovation. The organization is currently led by CEO Phil Goldfeder, who also has ties to The Memorial Foundation. Ashley Urisman serves as the Director of State Government Affairs, spearheading the council's engagement with state-level legislative and regulatory developments.

The AFC operates in a market where the intersection of traditional banking and high-speed technology requires constant negotiation with both state and federal authorities. By representing both fintechs and the banks that often partner with them, the AFC holds a significant position in the market, influencing how emerging technologies like automated decision-making are integrated into the broader financial system. The council frequently engages in public discourse to ensure that new statutes, such as Colorado’s ADMT Act, do not conflict with established federal laws like the Equal Credit Opportunity Act (ECOA) and the Fair Credit Reporting Act (FCRA).

What FF News has reported before

FF News has closely followed the American Fintech Council’s advocacy efforts as they navigate the complex regulatory landscape of modern finance. In previous coverage, the council has demonstrated a consistent focus on seeking clarity from government bodies to ensure that innovation is not stifled by ambiguous or conflicting rules. For example, FF News reported on how the American Fintech Council Urges Treasury for Clear Stablecoin Framework Under GENIUS Act. This prior reporting highlights the AFC’s broader strategy of engaging with high-level federal departments, such as the Treasury, to establish stable frameworks for digital assets and payment technologies. This latest move in Colorado continues that trend of proactive engagement, shifting the focus from federal stablecoin policy to state-level automated decision-making oversight.

What this means

The situation in Colorado is a bellwether for how state governments will handle the rise of AI in financial services. If Colorado implements a framework that diverges significantly from federal standards like ECOA or FCRA, it risks creating a fragmented regulatory environment that increases the cost of compliance for fintechs operating nationally. This pressure is particularly acute for mid-sized firms that may lack the resources to manage a patchwork of state-specific manual review mandates. The industry now faces a critical question: can state-level consumer protections coexist with the speed of automated lending, or will the "human-in-the-loop" requirement become a bottleneck that drives up the cost of credit for the very consumers the law intends to protect?