WASHINGTON, D.C. – Today, the Financial Technology Association (FTA) submitted a comment letter in response to the District of Columbia Department of Insurance, Securities, and Banking’s (DISB) request for information on regulation of Earned Wage Access (EWA) services, urging the agency to adopt a tailored framework that recognizes the unique nature of this product.
“With no mandatory fees, no credit checks, no interest, no recourse, and no impact on credit scores, EWA products are easy to use and consumer-friendly,” the letter states. “By giving workers access to their already earned yet unpaid wages, EWA helps them weather short-term financial shocks without incurring high costs from expensive alternatives.”
FTA encourages Washington, D.C., to align any regulatory framework with those adopted in states such as Arkansas, Indiana, Kansas, Louisiana, Maryland, Missouri, Nevada, South Carolina, and Utah. “FTA endorses the consumer protections codified in these states and supports legislative frameworks that require fee transparency and disclosures, ensure at least one no-cost access option, prohibit credit checks and credit reporting, and prevent providers from compelling repayment,” the letter explains.
Read the full comment 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.
FTA Urges Tailored Regulatory Framework for Earned Wage Access in Washington, D.C.
WASHINGTON, D.C. – Today, the Financial Technology Association (FTA) submitted a comment letter in response to the District of Columbia Department of Insurance, Securities, and Banking’s (DISB) request for information on regulation of Earned Wage Access (EWA) services, urging the agency to adopt a tailored framework that recognizes the unique nature of this product.
“With no mandatory fees, no credit checks, no interest, no recourse, and no impact on credit scores, EWA products are easy to use and consumer-friendly,” the letter states. “By giving workers access to their already earned yet unpaid wages, EWA helps them weather short-term financial shocks without incurring high costs from expensive alternatives.”
FTA encourages Washington, D.C., to align any regulatory framework with those adopted in states such as Arkansas, Indiana, Kansas, Louisiana, Maryland, Missouri, Nevada, South Carolina, and Utah. “FTA endorses the consumer protections codified in these states and supports legislative frameworks that require fee transparency and disclosures, ensure at least one no-cost access option, prohibit credit checks and credit reporting, and prevent providers from compelling repayment,” the letter explains.
Read the full comment 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.