“The CFPB’s new Advisory Opinion on earned wage access (EWA) is a constructive first step, and we appreciate Acting Director Vought and the Bureau’s effort to bring greater clarity to a product that millions of workers rely on to manage their finances. By formally rescinding the 2024 proposed interpretive rule, which never had legal standing, the CFPB is appropriately acknowledging the inaccuracies in that proposal and resetting the conversation around how EWA operates.

“Responsible EWA services provide workers access to the wages they are entitled to when they need it most. This Advisory Opinion properly and explicitly clarifies the core principles of EWA, accurately defining it as a product that allows workers early access to wages they’ve earned for work they’ve already performed. Importantly, the CFPB recognizes key features of EWA that distinguish it from credit, including a recognition that optional expedite fees or voluntary tips do not constitute finance charges.

“As this process moves forward, we will continue to work with regulators and policymakers to provide durable, consistent regulatory clarity. AFC will continue to advocate for thoughtful bipartisan federal EWA legislation that protects consumers, preserves access to safe and transparent products, and supports responsible innovation in modern financial services.”

The American Fintech Council is a standards-based organization representing the largest and most diverse earned wage access (EWA) companies fostering competition in consumer finance and pioneering products to better serve underserved consumer segments and geographies. 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.

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