Workers for Wage Access

Working Families Across America Support Earned Wage Access

Click on any state to see the public comments submitted on the EWA issue. Click here to read through the nearly 150,000 comments from American workers.

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The Issue

Earned Wage Access (EWA) has become a popular financial tool for millions of workers to have immediate access to portions of their earned income before payday and help maintain choice over how they manage their finances. However, a proposed interpretive rule by the Consumer Financial Protection Bureau (CFPB) would limit consumers choice and could make it more difficult and expensive to access EWA. These changes will limit workers' choice of accessing their money when they need it most. The proposed changes would treat EWA as a loan – and could come with all the restrictions that come with loans – mandatory fees, interest, and impact to one's credit report. We can't go back to a time when consumers have fewer, more expensive financial options.

Consumers agree. Americans submitted nearly 150,000 comments opposing this proposed interpretive rule, sharing their stories using EWA and the potentially devastation effects the rules would have on their financial choice.

The CFPB must listen to consumer stories.

Join the fight to preserve financial choice with Earned Wage Access!

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FAQ

How does Earned Wage Access Work?
Earned Wage Access (EWA) allows working Americans the ability to access a portion of their paycheck before payday, providing immediate financial flexibility without the need for high-interest loans or credit cards. Through a mobile app, workers can request a portion of their funds they've already earned, and the amount is typically transferred to their bank account within minutes.

Is EWA considered a loan?
‍No, EWA is not considered a loan. Unlike traditional loans, EWA does not charge mandatory fees, interest, or require a credit card check. More importantly, there is no risk of debt collection, late fees, or negative impacts on you credit score. Workers are simply accessing money they've already earned. Regulating EWA as a loan could limit its availability, making it harder for employees to access their wages when they need them most.

How does EWA help workers?
It is estimated that $1 trillion dollars is held up in payroll systems every two weeks, leaving many employees struggling to cover daily expenses. EWA bridges this gap, giving workers access to their earned income when they need it, helping them avoid costly alternatives like payday loans, overdraft fees, and high-interest credit cards.

How does the CFPB's proposed rule impact EWA?
The Consumer Financial Protection Bureau (CFPB) is considering new regulations that would regulate EWA as if it were a loan. This change would subject EWA to outdated rules that apply outdated regulatory frameworks to a new financial product– which does not work. Connecticut recently implemented similar restrictions, which led to devastating consequences from many residents who had previously relied on the service.

What are the alternatives to EWA if it becomes less accessible?
Without EWA, many workers may have to turn to high-interest payday loans, credit cards, or are left to overdraft and pay late fees, which comes with higher costs and greater risks. These alternatives can trap individuals in a cycle of debt– a reality that EWA can potentially help prevent by offering a more flexible and low-cost way to access earned wages.