American Fintech Council (AFC) Leads Industry Support for South Carolina Legislation to Create Safe Regulatory Structure for Earned Wage Access (EWA)

Industry letter to The South Carolina House Committee on Labor, Commerce, and Industry strongly endorses bipartisan legislation (S.700) to create regulatory framework for EWA

Letter follows in-person testimony by AFC before the House Subcommittee on Business and Commerce the testimony in April in support of proposed legislation

‍

Columbia, SC (May 2, 2024) – The American Fintech Council (AFC), the premier industry association representing responsible fintech companies including the largest Earned Wage Access (EWA) providers has joined with members in a letter to the South Carolina House Committee on Labor, Commerce and Industry endorsing legislation to regulate the burgeoning financial service product. This bipartisan legislation will implement key safeguards, ensure transparency and apply important standards for EWA providers to protect South Carolina consumers. The industry letter follows the in-person testimony by Elizabeth Gorz, AFC Chief Strategy Officer and Head of Legislative Affairs before the House Subcommittee on Business Commerce in April.

“Our members are united in their desire to create and offer safe innovative financial services to families long forgotten by traditional financial institution.” said Phil Goldfeder, Chief Executive Officer of the American Fintech Council. “AFC differentiates itself as an association by developing industry best practice and regulatory gold standards for emerging innovative products and companies. Responsible EWA providers offer a safe alternative to higher priced alternatives and are utilized by more than 500,000 South Carolina families ensuring they have low or no cost access to their pay when they need it most.”

In a recent letter to the South Carolina House Committee on Labor, Commerce, and Industry in support of bipartisan legislation (S.700), AFC, together with eight members expressed strong support for the legislation. Urging immediate passage, the letter reinforces that this legislation properly balances responsible innovation with a pragmatic, consumer protected regulatory framework that fits the EWA industry. The new legislation establishes clear standards for acceptable EWA services regulated under its registration regime in a manner that reflects the nuances and optionality of the EWA industry while also protecting consumers from irresponsible actors.

“S.700 establishes clear standards for acceptable EWA services regulated under its registration regime in a manner that reflects the nuances and optionality of the EWA industry while also protecting consumers from irresponsible actors,” wrote AFC and members in their letter to the South Carolina House Committee. “Specifically, the bill’s provisions requiring strong fee disclosures represented in a clear and transparent manner; and the ability for users to cancel the EWA service at anytime present strong consumer protections for South Carolinians that will ensure they can continue to use EWA services in a safe and secure manner.”

AFC has publicly advocated for a clear and consistent regulatory framework for EWA that avoids duplicative or diverging requirements and accurately reflects the nuances of the financial service.

“Our mission at AFC is to promote an innovative, transparent, inclusive, and customer-centric financial system by supporting responsible innovation in financial technology (Fintech) and encouraging sound public policy,” said Elizabeth Gorz in her April testimony before the committee. “AFC represents the largest and the most providers of Earned Wage Access products and services. As such, we have a responsibility to the industry, but even more importantly, to the South Carolinian consumers they serve. AFC has developed comprehensive standards for what constitutes best practice for responsible EWA service provider, which our members adhere to in their offerings both nationally and in South Carolina.”

###