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State Recommendations for Earned Wage Advances and Other Fintech Cash Advances

October 11, 2023

States are grappling with how to regulate earned wage advances (EWAs) and other fintech cash advances that purport not to be credit. These loans often closely resemble payday loans, with fees that multiply into rates above 300% and cycles of reborrowing that result in workers paying to be paid. State legislatures and regulators should not…

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Earned Wage Advances and Other Fintech Payday Loans: Workers Shouldn’t Pay to be Paid

April 20, 2023

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…

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Data on Earned Wage Advances and Fintech Payday Loan “Tips” Show High Costs for Low-Wage Workers

April 10, 2023

Data collected by the California Department of Financial Protection and Innovation (DFPI) on earned wage advances and other fintech payday loans show a cycle of repeat use and high costs typical of traditional payday loans. DFPI analyzed data covering nearly 6 million transactions by California consumers from seven companies. Three companies had a tip-based model…

Read More about Data on Earned Wage Advances and Fintech Payday Loan “Tips” Show High Costs for Low-Wage Workers

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State Recommendations for Earned Wage Advances and Other Fintech Cash Advances

Earned Wage Advances and Other Fintech Payday Loans: Workers Shouldn’t Pay to be Paid

Data on Earned Wage Advances and Fintech Payday Loan “Tips” Show High Costs for Low-Wage Workers