WASHINGTON, D.C. – The Financial Technology Association (FTA) submitted a letter in support of Michigan House Bill 5558, legislation that would provide important regulatory clarity for Earned Wage Access (EWA) products and the workers and employees who rely on them.
“We support appropriate regulation – like House Bill 5558 – that is risk-based and tailored to the unique nature of these innovative products,” FTA President and CEO Penny Lee wrote in the letter. “This bill would create a durable regulatory framework for EWA providers, ensuring strong, clear consumer disclosure requirements and enshrine into law the consumer protective features of the product.”
EWA allows workers to access the wages they have already earned with no mandatory fees, no interest, no impact on credit scores, and no recourse. These products are distinct from loans and should be regulated appropriately. EWA helps millions of American workers manage short-term liquidity challenges and access their own wages to meet routine or emergency expenses.
Read FTA’s full letter here. To learn more, read Just the Facts: Earned Wage Access.