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