On December 23, the CFPB issued an advisory opinion stating earned wage access products fall outside the definition of credit under TILA’s Regulation Z, withdrawing a Biden-era proposed interpretive rule that identified all such products as credit.
Continue Reading CFPB: Earned Wage Products Are Not Loans Under TILA
On October 7, the U.S. District Court for the Northern District of California denied a fintech company’s motion to compel arbitration in a putative class action. The plaintiffs, both servicemembers, allege that the company’s earned wage access (EWA) product violates the Military Lending Act (MLA), the Truth in Lending Act (TILA), and the Georgia Payday Lending Act (GPLA).
Continue Reading District Court Denies Arbitration of Service Members’ Class Action Claims Under Military Lending Act Holding That Earned Wage Access Constitutes Extension of Consumer Credit
On August 8, the U.S. District Court for the District of Maryland issued an opinion partially granting an earned wage access (EWA) provider’s motion to dismiss that challenged whether the company operated as an unlicensed lender in violation of the Maryland Consumer Loan Law (MCLL), charged unlawful fees, and failed to comply with disclosure obligations under the Truth in Lending Act (TILA). Plaintiffs also alleged the company violated the Maryland Consumer Protection Act’s (MCPA) prohibition on unfair or deceptive trade practices with respect to extensions of credit.
Continue Reading District Court Allows Federal TILA and Maryland Consumer Loan Law Claims to Move Forward Against Earned Wage Access Provider
Louisiana and Connecticut recently passed legislation establishing regulatory frameworks for earned wage access (EWA) providers.
Continue Reading Louisiana and Connecticut Advance Earned Wage Access Laws
On May 28, Maryland Governor Wes Moore signed House Bill 1294 into law, establishing a comprehensive regulatory framework for Earned Wage Access (EWA) providers operating in the state. Effective October 1, the new law provides for licensing of both employer-integrated and consumer-directed EWA providers under the Maryland Consumer Loan Law, while also introducing a host of new consumer protection requirements.
Continue Reading Maryland Enacts Earned Wage Access Law
On May 6, Indiana Governor Mike Braun signed House Enrolled Act No. 1125 into law, making Indiana the latest state to enact a statutory framework for regulating earned wage access (EWA) products. The Indiana Earned Wage Access Act, which takes effect January 1, 2026, requires most EWA providers to obtain a license from the Indiana Department of Financial Institutions and comply with operational, disclosure, and consumer protection requirements.
Continue Reading Indiana Enacts Earned Wage Access Law
On April 14, New York Attorney General Letitia James announced two separate lawsuits against earned wage access providers—one against a company that issues advances directly to consumers, and another targeting a provider that operates through employer partnerships. Both actions allege that the companies engaged in illegal payday lending schemes, charging fees and tips that resulted in annual percentage rates (APRs) far in excess of New York’s civil and criminal usury caps.
Continue Reading New York AG Sues Earned Wage Access Companies for Allegedly Unlawful Lending Practices
Utah and Arkansas have enacted new legislation governing earned wage access (EWA) services, establishing state-level registration obligations and consumer protection standards. Both laws clarify that EWA services are not loans under state law if certain conditions are met, including limitations on fees, debt collection, and credit reporting.
Continue Reading Utah and Arkansas Enact Earned Wage Access Regulations
On July 18, the CFPB proposed a new interpretive rule that would characterize earned wage access (“EWA”) products as extensions of credit and subject to the Truth in Lending Act and Regulation Z. Under the interpretive guidance, both the “tipping” function on EWA products, and the “expedited funds delivery fee” would be treated as finance charges, and would require the creditor to make the disclosures required for unsecured extensions of credit under Regulation Z. However, an employer-sponsored program which is provided at no cost to the employee (i.e., without what the CFPB has deemed a “finance charge”) would not require such disclosures.
Continue Reading CFPB Proposes Interpretive Rule Characterizing Earned Wage Access Products as Loans
On May 21, less than a month after Kansas, South Carolina has become the fifth state to enact comprehensive earned wages access (EWA) legislation, which is set to take effect on November 21, 2024.
Continue Reading South Carolina Enacts Earned Wages Access Law