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PayActiv Gets CFPB Approval for Earned Wage Access Service

Dec. 30, 2020, 9:40 PM

The Consumer Financial Protection Bureau gave its blessing to earned wage access products offered by PayActiv, one of the leading companies in the market.

The bureau on Wednesday issued an order that shields PayActiv’s products from potential enforcement actions under the Truth in Lending Act. The money advanced by PayActiv’s earned wage access (EWA) program isn’t a credit product and, therefore, not subject to the Truth in Lending Act’s disclosure requirements, the CFPB said.

“Payactiv does not directly or indirectly assess an employee’s credit risk for a Payactiv EWA Transaction, just as underwriting is not used by an ...