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ARTICLE · 08 SEPTEMBER 2026

Colorado AG Challenges Earned Wage Access Provider Under State Lending Laws

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Colorado's Attorney General has filed a lawsuit against an earned wage access provider, alleging its cash advance product violates state payday lending and consumer credit laws. The case centers on whether the provider's direct-to-consumer advances constitute high-cost loans subject to licensing requirements and rate limitations, with the state claiming an average APR of approximately 388% through tips and fees. This enforcement action underscores the ongoing regulatory debate over how EWA products should b

United StatesConsumer Protection
A.J. Dhaliwal
A.J. Dhaliwal
Mehul Madia
Mehul Madia
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On August 27, 2026, the Colorado Attorney General and the state’s Uniform Consumer Credit Code Administrator announced a lawsuit against an earned wage access (EWA) provider, alleging that its direct-to-consumer cash advance product constitutes high-cost payday lending in violation of the Colorado Uniform Consumer Credit Code, the Deferred Deposit Loan Act, and the Colorado Consumer Protection Act.

The complaint alleges that the provider characterized its advances as access to wages already earned rather than loans, while requiring consumers to authorize repayment from their bank accounts on or around payday. According to the state, the provider made more than 3.1 million advances totaling approximately $300 million to nearly 57,000 Colorado consumers between January 2023 and July 2025. The complaint alleges that tips and expedited-transfer fees resulted in an average APR of approximately 388%. Specifically, the state alleges that the provider:

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