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Venable LLP

Why Fintechs Can't Always Skip the State Licensing Maze for Earned Wage Access

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Earned Wage Access (EWA) lets employees access wages they've already earned, but haven't yet been paid, typically through an app or digital service. For workers, this can mean avoiding payday loans or overdraft fees....more

Ballard Spahr LLP

New York AG sues payday lenders MoneyLion and DailyPay

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New York Attorney General Letitia James has sued payday lenders MoneyLion Inc. and DailyPay Inc. in New York state court, alleging that the two companies took advantage of tens of thousands of New Yorkers....more

Venable LLP

California DFPI's New Requirements for Debt Settlement, Education Finance, and Wage Access Providers

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The California Department of Financial Protection and Innovation (DFPI) has implemented new registration requirements under the California Consumer Financial Protection Law (CCFPL), effective February 2025. ...more

Latham & Watkins LLP

CFPB Proposes to Designate Earned Wage Access Products as Loans

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Paycheck advance products that are deemed consumer loans under the CFPB’s new proposal would be subject to increased disclosure and regulatory protections....more

Nelson Mullins Riley & Scarborough LLP

Who is Paying Who: The Employee or the Employer?

Since 2022, the Consumer Financial Protection Bureau (CFPB) has a stated priority of “protecting employees and their rights through conducting reports, inquiries, and issuing requirements for employers.” In July 2024, the...more

Ballard Spahr LLP

CFPB Proposes Interpretive Rule that EWAs Are Credit; Expedited Funding Fees and Tips May Be Finance Charges under Regulation Z

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On July 18, 2024, the Consumer Financial Protection Bureau (the “CFPB” or “Bureau”) proposed an interpretive rule that states (1) EWA products fall under the definition of “credit” under the Truth in Lending Act (“TILA”) and...more

Troutman Pepper Locke

CFPB Says Earned Wage Access Products are Subject to the Truth in Lending Act

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Last week, the Consumer Financial Protection Bureau (CFPB or Bureau) issued a proposed interpretive rule opining that earned wage access (EWA) products — whether provided through employer partnerships or marketed directly to...more

Ballard Spahr LLP

South Carolina Enacts Earned Wage Access Legislation Requiring Registration, Exempting the Product from Lending Laws

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On May 21, 2024, South Carolina Governor Henry McMaster signed into law the Earned Wage Access Services Act (the “Act”), which will require earned wage access (“EWA”) providers to register annually with the state’s Department...more

Troutman Pepper Locke

California DFPI’s Proposed EWA Legislation Rejected by Office of Administrative Law

Troutman Pepper Locke on

As discussed here, in March 2023, the California Department of Financial Protection and Innovation (DFPI) proposed new regulations under the California Financing Law that would interpret the definition of “loan” to include...more

Goodwin

2023 Year in Review: Fintech

Goodwin on

Welcome to the Fintech chapter of our annual report Consumer Financial Services 2023 Year in Review. Looking Ahead to 2024 - The CFPB is expected to finalize rulemaking authorizing supervision of payment application...more

DailyPay, Inc.

Earned Wage Access: The Anti-Loan

DailyPay, Inc. on

Currently, more than 60% of Americans are living paycheck-to-paycheck. And for the average American household, emergency expenses don’t always align perfectly with the typical biweekly payday. This financial strain leads...more

Ballard Spahr LLP

Fintech trade group sends letter to Director Chopra urging CFPB to develop regulatory approach for earned wage access products

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The American Fintech Council (AFC), a trade group whose members include providers of earned wage access (EWA) products, has sent a letter to Director Chopra urging the CFPB to take steps towards development of a “pragmatic...more

Troutman Pepper Locke

Arizona, Kentucky, and Hawaii Become Latest States to Introduce Legislation to Regulate Earned Wage Access Products

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Recently, Arizona, Kentucky, and Hawaii have jumped on the bandwagon to regulate earned wage access (EWA) products and services. Arizona’s proposed bill makes clear that EWA services are not considered to be loans or money...more

Ballard Spahr LLP

Earned Wage Access Products Are Not Loans, According to the AG of Montana

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On December 22, 2023, the Attorney General of Montana released an opinion (the “Opinion”) concluding that certain earned wage access (EWA) products are not “consumer loans” or “deferred deposit loans” under Montana law and do...more

Ballard Spahr LLP

CFPB comments on California proposal to supervise providers of earned wage access products

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The Consumer Financial Protection Bureau has sent a letter to the California Department of Financial Protection and Innovation (DFPI) commenting on the DFPI’s proposal that would require providers of “income-based advances”...more

DailyPay, Inc.

New Earned Wage Access Laws Are A Win For All Workers

DailyPay, Inc. on

Paying bills on time is still a monumental task for millions of working Americans. The latest research shows that about six in 10 Americans are living paycheck to paycheck; thus an unexpected bill could send someone into a...more

Troutman Pepper Locke

Nevada Passes Law Creating Licensing Requirements for Earned Wage Access Providers

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On June 15, Nevada Governor Joe Lombardo signed SB 290 into law, which imposes licensing, reporting, examination, and other substantive requirements on providers of earned wage access (EWA) products. Specifically, the...more

DailyPay, Inc.

The American Worker and Debt: How Earned Wage Access Can Help Break The Cycle

DailyPay, Inc. on

In 1965, the country was at an inflection point: there had been nearly a decade of important civil rights activism culminating in the Voting Rights Act, the World's Fair came to Queens, and the popularity of unions was at a...more

DailyPay, Inc.

How EWA Helps Employees Stay out of Debt and be More Responsible With Their Earned Pay

DailyPay, Inc. on

One of the more understandable reactions to programs allowing people access to their earned pay on demand, rather than waiting for the scheduled payday, is the contention that there will be rampant abuse of the benefit. The...more

DailyPay, Inc.

As On-Demand Pay Industry Matures, Agencies Begin Process of Integration

DailyPay, Inc. on

Employees increasingly are able to access earned pay on their demand, between pay cycles, when their employees work with on-demand pay (also known as earned wage access, or EWA) providers. Today, with inflation at a 40-year...more

DailyPay, Inc.

Earned Wage Access & the Fintech Fight for Financial Equity

DailyPay, Inc. on

As Black History Month comes to a close, the relationships between the history of race, poverty, affordable financial services, and modern American life are hard to ignore. Over the past two years, surviving a pandemic has...more

DailyPay, Inc.

Earned Wage Access: A Sword In The Fight Against Payday And Overdraft

DailyPay, Inc. on

Earned wage access (EWA) is the fastest growing employee benefits category, increasingly offered by forward-thinking employers looking to assist in creating a more financially secure workforce. The technology, typically...more

Allen Matkins

But Is It A Loan?

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Earlier this week, California' Department of Financial Protection & Innovation announced that it had entered into memorandums [sic] of understanding with five earned wage access companies.  If you haven't heard of a "earned...more

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