High-Cost Credit

Fintech & Disguised Credit

New forms of credit can pose new problems and old ones, often evading consumer protections. Buy now pay later credit, earned wage advances and other cash advance apps, and other new forms of credit can pose a number of risks. Rent-to-own (RTO) and lease-to-own sales may be exempt from or violate lending laws. New underwriting methods also impact the safety of credit. NCLC works to ensure that new and evasive forms of credit have strong consumer protections.

The Tricks Cash Advance Apps Use to Coerce Borrowers to “Tip”

April 23, 2025

A new form of fintech payday loan offered through cash advance apps uses “tips” as a form of disguised interest. These apps claim that tips are voluntary, but they use dark patterns, actual or implied repercussions for not tipping, manipulative interfaces, behavioral and psychological tricks, and other techniques to make tips almost as certain as…

Read More about: The Tricks Cash Advance Apps Use to Coerce Borrowers to “Tip”
April 20, 2023
April 11, 2025

Recent

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Risks and Advice for Buy Now, Pay Later Borrowers

May 19, 2025

DailyPay Extracts Hundreds of Dollars From Low-Wage Workers’ Pay

May 8, 2025

Letter Opposing Connecticut S 1396 Earned Wage Advances

May 8, 2025

The Tricks Cash Advance Apps Use to Coerce Borrowers to “Tip”

April 23, 2025

NY AG Lawsuit Shows Dangers of Fintech Payday Loan Bills

April 15, 2025

Letter Urging Veto of MD HB 1294, Earned Wage Advance

April 11, 2025

National Consumer Groups Comments Urging the CFPB to Adopt Updated Credit Practices Rule

April 1, 2025

Testimony Opposing Maryland HB 1294 Earned Wage Access

March 21, 2025

Senate, CFPB Move to Weaken Fraud and Privacy Protections in Payment Apps and Digital Wallets

March 4, 2025

Comments & Letters

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Letter Opposing Connecticut S 1396 Earned Wage Advances

May 8, 2025

Letter Urging Veto of MD HB 1294, Earned Wage Advance

April 11, 2025

National Consumer Groups Comments Urging the CFPB to Adopt Updated Credit Practices Rule

April 1, 2025

Comments on Risks of Bank-Fintech Arrangements Involving Lending

October 30, 2024

NCLC, CRL & CFA Comments in Support of CFPB’s Proposed Interpretive Rule on Earned Wage Advances

August 30, 2024

165 Organizations and Academics Support the CFPB’s Paycheck Advance Interpretive Rules

August 29, 2024

NCLC & Consumer Reports Comments to CFPB Regarding Buy Now, Pay Later Loans Interpretive Rule

August 1, 2024

90 Consumer, Civil Rights and Community Organizations and Academics Comments to CFPB Regarding Buy Now, Pay Later Loans Interpretive Rule

August 1, 2024

Comment on California Earned Wage Advance Regulation

July 24, 2024

Reports

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Fintech and Consumer Protection: A Snapshot

March 1, 2019

The Rent-to-Own Racket: Using Criminal Courts to Coerce Payments from Vulnerable Families

February 5, 2019

Paper Statements: An Important Consumer Protection

March 1, 2016

Issue Briefs

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Risks and Advice for Buy Now, Pay Later Borrowers

May 19, 2025

DailyPay Extracts Hundreds of Dollars From Low-Wage Workers’ Pay

May 8, 2025

The Tricks Cash Advance Apps Use to Coerce Borrowers to “Tip”

April 23, 2025

Comparing APRs on Small Loan Alternatives

January 7, 2025

New Rights for Buy Now, Pay Later Purchases

December 2, 2024

State Recommendations for Earned Wage Advances and Other Fintech Cash Advances

October 11, 2023

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

April 20, 2023

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

April 10, 2023

Testimony

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Testimony Opposing Maryland HB 1294 Earned Wage Access

March 21, 2025

Testimony Before Maryland Senate on Amended HB 246: Earned Wage Access and Credit Modernization

March 26, 2024

Testimony Opposing Maryland HB 1425/SB 998 Earned Wage Access

March 1, 2024

Testimony in Support of Hawaii SB 2664 on Earned Wage Advances

February 14, 2024

Testimony of Carla Sanchez-Adams on “Examining Scams and Fraud in the Banking System and Their Impact on Consumers”

February 1, 2024

Testimony in Support of Maryland HB 246

January 23, 2024

Testimony on Vermont H.87 Regarding Earned Wage Access Service Providers

March 13, 2023

Testimony of Lauren Saunders Before the U.S. House Task Force on Financial Technology on Buy Now, Pay Later and Other Fintech Cash Flow Products

November 1, 2021

Testimony Before House Financial Services on Examining Rental Purchase Agreements and the Potential Role for Federal Regulation

July 26, 2011

Press Releases & News

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NY AG Lawsuit Shows Dangers of Fintech Payday Loan Bills

April 15, 2025

Senate, CFPB Move to Weaken Fraud and Privacy Protections in Payment Apps and Digital Wallets

March 4, 2025

CFPB Rescinds 2020 Advisory Opinion on Earned Wage Advances

January 16, 2025

Holiday Shoppers Beware! Buy Now Pay Later and Deferred Interest Credit Cards Hold Hidden Dangers

December 2, 2024

DC Attorney General’s Office Takes Action Against EarnIn Over 300% APR Loans

November 20, 2024

Consumer Advocates Urge Regulators to End Predatory Bank-Fintech Partnerships

October 31, 2024

160+ Groups Urge Clear Fee Disclosures for Paycheck Advance Apps in Letter to the CFPB

August 29, 2024

Consumer Advocates Support CFPB’s Interpretive Rule on Buy Now Pay Later Loans, Call For Additional Consumer Protections

August 1, 2024

Los Angeles Times: Federal regulators step up their campaign against predatory payday lenders and their rip-offs

July 24, 2024

Legislation

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Letter Opposing Connecticut S 1396 Earned Wage Advances

May 8, 2025

Letter Urging Veto of MD HB 1294, Earned Wage Advance

April 11, 2025

Testimony Opposing Maryland HB 1294 Earned Wage Access

March 21, 2025

Letter Opposing H.R. 7428 (Steil), Earned Wage Access Consumer Protection Act

April 16, 2024

Opposition to H.R. 7440 (McHenry) Financial Services Innovation Act of 2023

April 16, 2024

Testimony Before Maryland Senate on Amended HB 246: Earned Wage Access and Credit Modernization

March 26, 2024

Testimony Opposing Maryland HB 1425/SB 998 Earned Wage Access

March 1, 2024

Testimony in Support of Maryland HB 246

January 23, 2024

Letter Opposing Nevada Earned Wage Advance Bill

May 9, 2023

From the NCLC Digital Library

Consumer Credit Regulation

Innovative thinking and precise authority on predatory lending and other consumer credit, including analysis on other players in consumer accounts and payment systems.

Read Chapter One

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