As financial pressures continue to mount for millions of Americans, tools that provide short-term financial flexibility, like Earned Wage Access (EWA), are more critical than ever. EWA gives workers early access to wages they’ve already earned, offering a vital buffer for unexpected expenses and reducing reliance on high-cost credit products.
In a recent op-ed published by Payments Dive, Brian Tate, President and CEO of the Innovative Payments Association, calls on the Consumer Financial Protection Bureau (CFPB) to provide clear, stable guidance that protects access to EWA. Tate argues that the CFPB’s recent regulatory reversals have created confusion and uncertainty, despite years of precedent affirming that EWA is not credit. In 2020, the CFPB issued an Advisory Opinion confirming that EWA functions as early wage delivery—not lending. That opinion spurred responsible innovation and widespread adoption, helping workers manage cash flow without incurring debt. But the Bureau has since revoked that guidance without adequate input from stakeholders, introducing unnecessary instability into the marketplace. Tate’s message is clear: The CFPB must reissue a strong, expanded advisory opinion to affirm that EWA is not a credit product. Doing so would restore regulatory clarity and support the continued availability of this important tool for American workers. Read the full op-ed in Payments Dive: IPA CEO: CFPB must clarify earned wage access is not credit (via Payments Dive) Comments are closed.
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