On July 18, 2024, the Consumer Financial Protection Bureau (CFPB) issued a proposed interpretive rule to regulate offerings in the paycheck advance marketplace. The proposed interpretive rule would deem many paycheck advance products, sometimes marketed as “earned wage advances” or “earned wage access” (EWA) products, as consumer loans subject to the Truth in Lending Act (TILA), which would, among other obligations, require market participants to provide consumers with certain disclosures regarding finance charges. When the paycheck advance product is no-fee and truly free to the consumer many requirements would not apply. According to the CFPB, the purpose of this proposed interpretive rule is “to help market participants determine when certain existing requirements under Federal law are triggered.” Read our update here.
