NCLC is among 226 labor, consumer, civil rights, and community organizations that sent a letter opposing H.R. 9330, the misnamed Earned Wage Access Consumer Protection Act, which exempts earned wage payday loans from the Truth in Lending Act (TILA), the Military Lending Act, the Equal Credit Opportunity Act, and other federal laws.
The bill preempts state laws that protect people from spiraling costs, endorses unaffordable loans that make workers pay to be paid and facilitates new evasions by payday lenders. The bill would deprive servicemembers of the protections of the Military Lending Act and override the Consumer Financial Protection Bureau’s well-reasoned explanation in 2024 that these paycheck advances are loans and their hidden costs are finance charges.
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