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Organizations and Academics Urge the CFPB to Regulate Fee-based Earned Wage Access Products as Credit

October 12, 2021
Consumer Finance
Payday and Other Small Dollar Loans
Payday Loans
Letters to Congress

The CFPB should rescind the Bureau’s November 2020 EWA Advisory Opinion or to revise its unsound reasoning to prevent evasions of credit laws. The CFPB should also revisit the December 2020 Compliance Assistance Sandbox Approval Order regarding PayActiv for the same reason, and to order PayActiv to cease misusing the order. We also urge the Bureau to eliminate or significantly alter the “innovation” programs adopted in the last few years, which have resulted in a secretive, one-sided process for industry to seek exemptions from or skewed interpretations of critical consumer protection laws without any input from consumers, competitors, or the general public.