Originally appearing in American Banker on Feb. 15, 2024, Kate Berry talks to NCLC’s Associate Director Lauren Saunders about so-called earned wage advances.
Lauren Saunders, associate director at the National Consumer Law Center, said the industry is trying to stall state efforts to classify payroll advances as loans and head off what could be revised guidance from the CFPB. Consumer advocates and Connecticut’s banking department refer to earned wage access products as high-tech payday loans.
“They are trying to get out of interest rate caps that apply to loans. Decades ago, payday lenders went to states and asked to be taken out of loan statutes and that’s exactly what the earned wage access industry is doing right now.”
Lauren Saunders, associate director of the National Consumer Law Center
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