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ARTICLE · 25 JULY 2024

CFPB Issues Interpretive Rule For Paycheck Advance Or ​"Earned Wage Access" Products

Kelley Drye & Warren LLP
Kelley Drye & Warren LLP
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Late last week, the Consumer Financial Protection Bureau (CFPB) released a proposed interpretive rule asserting that paycheck advance or earned wage access (EWA) products...

United StatesFinance and Banking
Donnelly L. McDowell
Donnelly L. McDowell
Katherine White
Katherine White
Salim Rashid
Salim Rashid

Late last week, the Consumer Financial Protection Bureau (CFPB) released a proposed interpretive rule asserting that paycheck advance or earned wage access (EWA) products are considered consumer loans and therefore subject to the Truth in Lending Act (TILA), irrespective of whether the products are provided through employer partnerships or marketed directly to borrowers. The new interpretive rule, which unlike substantive rules issued under the APA do not impose new legal requirements or have the force and effect of law, explains how existing law (TILA and Regulation Z, specifically) apply to the increasingly popular financing option and replaces a 2020 advisory opinion issued in the Trump administration.

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