Earned-Wage Access Firms Hit With Loan Disclosures in CFPB Plan

Earned-wage access providers would have to count “tips” and expediting fees as finance charges, significantly raising the advertised costs of payroll advances, under a proposal from the Consumer Financial Protection Bureau.

Earned-wage access products allow customers, typically hourly workers, to access a portion of their paychecks prior to payday. Some of the nation’s largest employers, including Walmart Inc. and Amazon.com Inc., offer early-pay options as a way to attract and retain workers.

Many earned-wage access providers also give customers the option to pay a tip for their services. Consumer advocates have raised concerns that those tips, as well as ...