Bloomberg Tax
Dec. 7, 2020, 11:31 AM

Early Wage Access Industry Remains in Limbo Despite CFPB Opinion

Evan Weinberger
Evan Weinberger
Assistant Managing Editor

Early wage access products will continue to face close scrutiny under state consumer protection, wage, and tax laws despite a recent CFPB opinion that said some of the products aren’t loans.

The Consumer Financial Protection Bureau Nov. 30 said in an advisory opinion that programs operating through employers that allow workers to get paycheck advances without fees aren’t considered credit under the Truth in Lending Act.

By exempting those products from its regulations, the CFPB made it easier for employers to partner with some early wage access companies. But the advisory opinion doesn’t cover another, burgeoning type of wage access ...

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