Earned Wage Advances and Other Fintech Payday Loans: Workers Shouldn’t Pay to be Paid
Earned wage advances (EWA) are a form of payday loan. Fees appear small but can pile up in hidden ways and drain low wages. “Tip”-based fintech payday loans with no connection to wages can be even more expensive, 498% APR or higher, and can trigger overdraft and nonsufficient fund fees. Neither employer-based EWAs nor other…