In a letter to Treasury Secretary Scott Bessent and testimony around the country, AFC stands up for consumers who rely on EWA for critical financial flexibility‍

‍Urges fixes for “irresponsible and deficient” past CFPB rulemaking on EWA 

Washington, D.C. (February 3, 2025) – The American Fintech Council (AFC), the premier industry association representing responsible fintech companies, innovative banks, and the largest number of responsible Earned Wage Access (EWA) providers, is intensifying its efforts to ensure responsible EWA services remain accessible to American workers. Through federal engagement and testimony before eight state legislatures so far across the country, with two upcoming hearings in Nebraska and Utah, AFC is committed to supporting clear, pragmatic regulation for EWA to empower consumers and foster responsible innovation.

“Earned Wage Access is an essential financial tool for millions of American families, offering a safe and responsible alternative to the predatory credit products of the past,” said Phil Goldfeder, CEO of the American Fintech Council. “For generations, workers have been captive to an arbitrary pay period system that separates their work from their wages. EWA restores this connection, providing greater financial flexibility and stability for those who need it. AFC and responsible EWA providers are committed to establishing a regulatory framework that protects consumers and preserves access to EWA by recognizing that this product is not a loan, and should not be regulated as such.”

In a letter to Treasury Secretary Scott Bessent, who also serves as Acting Director of the Consumer Financial Protection Bureau (CFPB), AFC urged the pursuit of a formal rulemaking process that would allow consumers and industry participants to convey the nuances and benefits of responsible EWA products. AFC emphasized that responsible EWA providers offer a non-recourse, fee-transparent alternative to traditional credit products that helps workers access their earnings when needed, without late fees or penalties. AFC also highlighted the need for consistent federal regulation to address the patchwork of state laws that risk undermining the stability and availability of EWA services.

In a previous letter to the CFPB in February 2024, AFC asked for formal legislative rulemaking process, but the request went unheeded by then-Director Chopra. Instead, the CFPB issued a proposed informal interpretive rule, which discussed a novel and inaccurate interpretation of EWA and was never finalized. In addition, the CFPB rescinded its 2020 Advisory Opinion–the Bureau’s only official position on EWA–in the final moments of the previous administration, leaving industry participants without a clear understanding of the CFPB’s position.

In addition to federal advocacy, AFC representatives recently testified at hearings on EWA in Colorado, Indiana, New Mexico, North Dakota, Oregon, and Vermont, as well as two hearings in Washington state, with upcoming testimony in Nebraska and Utah, to speak about the consumer benefits of these offerings and the need to support responsible EWA practices. AFC will continue to monitor legislative and regulatory developments around EWA at the state level, and is prepared to engage collaboratively with any state considering guidance around this technology.

“A regulatory framework for Earned Wage Access must be grounded in a clear understanding of its role as an empowering tool for financial stability—not mischaracterized as traditional credit,” said Ian P. Moloney, SVP and Head of Policy and Regulatory Affairs at AFC. “EWA provides workers with immediate access to their hard-earned wages, helping them avoid the cycle of high-interest debt and predatory financial products. Misguided regulation risks sidelining this critical innovation, leaving millions of Americans without a safe, transparent alternative to address their financial needs. AFC is committed to ensuring that regulatory decisions are informed by facts and protect the unique consumer benefits EWA provides.”

A standards-based organization, AFC is the premier trade association representing the largest financial technology (Fintech) companies and innovative banks offering embedded finance solutions. AFC’s mission is to promote a transparent, inclusive, and customer-centric financial system by supporting responsible innovation in financial services and encouraging sound public policy. AFC members foster competition in consumer finance and pioneer products to better serve underserved consumer segments and geographies.

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