The Financial Technology Association (FTA) submitted a letter and joined other Earned Wage Access (EWA) companies and trade associations in asking the California Department of Financial Protection and Innovation (DFPI) to revise language in its recently modified rule to clarify that EWA is not a loan. In particular, the group recommended changes that would empower consumers through clear disclosure requirements and protect consumers by ensuring that EWA providers cannot compel or attempt to compel payments, charge late fees, or pull credit information or reports.
FTA is committed to EWA standards and requirements that promote consumer protection and transparency, including potential state registration. EWA services offered by FTA member companies are non-recourse and never charge interest. Therefore, these services should not be regulated as a loan.
Read the joint letter here.
ABOUT US
The Financial Technology Association (FTA) is a Washington, DC-based trade association representing industry leaders shaping the future of finance. We champion the power of technology-centered financial services and advocate for the modernization of financial regulation to support inclusion and responsible innovation.