Welcome
Banking Law

CFPB Clarifies Some Early Wage Access Products Aren’t Loans

Nov. 30, 2020, 10:54 PM

Early wage access programs that allow people to receive their earnings before payday are not loans or credit products if there are no attached fees, the CFPB said.

The Consumer Financial Protection Bureau’s advisory opinion Monday enables some early wage access programs—used by companies to allow employees to get cash advances before a pay period ends—to avoid being subject to certain restrictions in the Truth in Lending Act.

The opinion aims to reduce uncertainty around early wage access products and spur industry innovations, the bureau said.

The CFPB’s advisory opinion wouldn’t apply to most earned wage advance services since they...

To read the full article log in. To learn more about a subscription click here.