WA: Testimony in Support WA HB 1063

TO: Washington House Committee on Consumer Protection & Business
FROM: Phil Goldfeder, CEO, American Fintech Council (AFC)
DATE: January 22, 2025
SUBJECT: House Bill 1063

Position: Support.

Testimony:

Thank you Chair Walen, Vice-Chair Hackney, Ranking Members McClintock and Dufault, and members of the House Consumer Protection & Business Committee for providing me the opportunity to testify before you in support of House Bill 1063 (HB 1063). My name is Phil Goldfeder, and I am a former state legislator from the state of New York and now continue in my public service as the CEO of the American Fintech Council (AFC). We appreciated the opportunity to collaborate last session and thank you for allowing AFC to appear again before the committee this year.

AFC is the premier trade association representing the largest financial technology (Fintech) companies, including the biggest providers and largest number of Earned Wage Access (EWA) companies. Our mission is to promote a transparent, inclusive, and customer-centric financial system by supporting responsible innovation in financial services and encouraging sound public policy.

Washingtonians are already reaping the benefits of EWA services. AFC member companies providing EWA have served more than 400,000 users within the state. To ensure that EWA providers safely and effectively serve consumers, AFC has established clear standards on what constitutes responsible EWA. Our standards require that a voluntary no-cost option be made available to all users; strong fee disclosures represented in a clear and transparent manner; and the ability for users to cancel the EWA service at any time. The provisions of HB 1063 reflect those standards, and we thank you for your nuanced and thoughtful approach to regulating this industry.

Establishing the regulatory framework enumerated in HB 1063 will provide a critical financial choice for Washington workers and allow responsible EWA services to flourish in this state. This bill will help workers access their pay by giving EWA providers a clear and functional regulatory path that recognizes the nuances of the service. In turn, workers will be able to engage with responsible EWA providers in a manner that fits their lifestyle best, whether they access services offered through an employer, as stand-alone product, or as part of a subscription.

In closing, I applaud the Washington legislature for taking up this issue in a timely manner and seeking a pragmatic solution to regulation through HB 1063. I thank you again for the opportunity to offer my support for this bill and am happy to answer any questions you may have.

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