Fintechs Seek Federal Early-Pay Access Rules as States Split (1)

Earned-wage access providers want the Consumer Financial Protection Bureau to consider crafting formal rules for companies that allow people to tap their earnings before payday.

The American Fintech Council sent a letter Wednesday to the CFPB calling for federal regulations on earned-wage access because states are taking contradictory approaches, with some treating the products as a loan and others not. The differences between states are stark, resulting in a “patchwork approach” that is making hard for companies to operate nationwide, the letter said.

“Regardless of how states have chosen to pursue the regulation of the emerging EWA market, we ...