The Consumer Financial Protection Bureau’s new proposal to regulate earned-wage access products at the federal level is set to bolster blue states that are treating the cash advances as loans, but it’s also drawing pushback from fintech early-pay providers and could clash with states taking a different approach.
The proposed interpretive rule released Thursday would classify earned-wage access advances as loans under the Truth in Lending Act. If finalized, it will require companies providing early-pay products to disclose all fees and “tips” to customers up front and calculate them into a single annual percentage rate.
The federal regulator’s latest move ...
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