Regulators are painting several types of lending products with a broad brush, bringing an ever-widening swath of lenders under federal purview. Under the new rule, these lenders would have to disclose more information to borrowers, more extensively detailing fees, interest and the total costs inherent in accessing wages early.
In a statement emailed to PYMNTS, the Innovative Payments Association said that the CFPB’s changes “misclassify” EWA products and “could affect nearly 56 million Americans who rely on EWA services to securely access a portion or all of their already earned wages before payday.” The CFPB’s research has been limited to only eight firms.