{"id":3627,"date":"2024-07-18T07:00:55","date_gmt":"2024-07-18T14:00:55","guid":{"rendered":"https:\/\/economicintegrity.org\/?p=3627"},"modified":"2025-10-22T14:49:29","modified_gmt":"2025-10-22T21:49:29","slug":"cfpb-halts-worker-payday-loan-evasions","status":"publish","type":"post","link":"https:\/\/economicintegrity.org\/?p=3627","title":{"rendered":"CFPB Halts Worker Payday Loan Evasions"},"content":{"rendered":"\n<p><\/p>\n\n\n\n<a href=\"https:\/\/www.nclc.org\/cfpb-halts-worker-payday-loan-evasions\/\" target=\"_blank\" rel=\"noopener noreferrer\"><i class=\"fas fa-newspaper\" aria-hidden=\"true\"><\/i> Press release from NCLC | <span class=\"submitted-date\">July 18, 2024<\/span><\/a>\n\n\n\n<p>\u201cA payday advance that is repaid on payday is a payday loan, and fintech cash advance apps that call themselves \u2018earned wage access\u2019 are just high-cost lending in disguise,\u201d <strong>said Lauren Saunders, associate director of the National Consumer Law Center.<\/strong> \u201cThe CFPB has seen through fintech payday lenders\u2019 new clothes, making clear that worker payday loans that hide 300% APRs in coerced, so-called \u2018tips\u2019 and other junk fees must disclose their true costs just like other payday loans. A tip is paid to a human being who serves you; it is not a legitimate way to disguise the cost of predatory loans.\u201d<\/p>\n\n\n\n<p><\/p>\n\n\n\n<a href=\"https:\/\/www.responsiblelending.org\/media\/cfpbs-proposed-earned-wage-advance-rule-clarifies-high-cost-predatory-fintech-products-are\" target=\"_blank\" rel=\"noopener noreferrer\"><i class=\"fas fa-newspaper\" aria-hidden=\"true\"><\/i> Press release from CRL | <span class=\"submitted-date\">July 18, 2024<\/span><\/a>\n\n\n\n<p>\u201cThe CFPB has provided much-needed clarity that existing federal consumer protection laws, like TILA, apply to wage advance products,\u201d <strong>said Nadine Chabrier, senior policy and litigation counsel at the Center for Responsible Lending (CRL)<\/strong>. \u201cThis guidance will require EWA lenders to include all costs in the price of credit, promoting fair competition that will allow consumers to comparison shop for the best deal.\u201d<\/p>\n\n\n\n<p><\/p>\n\n\n\n<a href=\"https:\/\/consumerfed.org\/press_release\/cfa-statement-in-response-to-cfpb-interpretive-rule-on-paycheck-advance-products\/\" target=\"_blank\" rel=\"noopener noreferrer\"><i class=\"fas fa-newspaper\" aria-hidden=\"true\"><\/i> Press release from CFA | <span class=\"submitted-date\">July 18, 2024<\/span><\/a>\n\n\n\n<p>\u201cWorkers have always relied on wages to repay advances from lenders. At the end of the day, an advance on wages is still a loan that has to be repaid, and no amount of hair-splitting can change it,\u201d <strong>said Adam Rust, Director of Financial Services for the Consumer Federation of America.<\/strong> \u201cPolicymakers should be skeptical whenever lenders insist on regulatory exemptions from rules that apply to their competitors. The CFPB\u2019s interpretive rule will level the playing field and promote competition among short-term small-dollar lenders.\u201d<\/p>\n\n\n\n<p><\/p>\n\n\n\n<a href=\"https:\/\/www.consumerfinance.gov\/about-us\/newsroom\/cfpb-proposes-interpretive-rule-to-ensure-workers-know-the-costs-and-fees-of-paycheck-advance-products\/\" target=\"_blank\" rel=\"noopener noreferrer\"><i class=\"fas fa-newspaper\" aria-hidden=\"true\"><\/i> Press release from CFPB | <span class=\"submitted-date\">July 18, 2024<\/span><\/a>  |  <a href=\"https:\/\/www.consumerfinance.gov\/data-research\/research-reports\/data-spotlight-developments-in-the-paycheck-advance-market\/\" target=\"_blank\" rel=\"noopener noreferrer\"><i class=\"fas fa-newspaper\" aria-hidden=\"true\"><\/i> CFPB Data Spotlight | <span class=\"submitted-date\">July 18, 2024<\/span><\/a>\n\n\n\n<p><strong>WASHINGTON, D.C.<\/strong> &#8211; The Consumer Financial Protection Bureau (CFPB) today proposed an <a href=\"https:\/\/www.consumerfinance.gov\/rules-policy\/rules-under-development\/consumer-credit-offered-to-borrowers-in-advance-of-expected-receipt-of-compensation-for-work\/\">interpretive rule<\/a> explaining that many paycheck advance products, sometimes marketed as \u201cearned wage\u201d products, are consumer loans subject to the Truth in Lending Act.<\/p>\n\n\n\n<p>&#8230;continued&#8230;<\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button is-style-outline is-style-outline--1\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.consumerfinance.gov\/about-us\/newsroom\/cfpb-proposes-interpretive-rule-to-ensure-workers-know-the-costs-and-fees-of-paycheck-advance-products\/\" target=\"_blank\" rel=\"noreferrer noopener\">Read more<\/a><\/div>\n<\/div>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Press release from NCLC | July 18, 2024 \u201cA payday advance that is repaid on payday is a payday loan, and fintech cash advance apps [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"site-sidebar-layout":"default","site-content-layout":"default","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"default","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center 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center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[4],"tags":[10,24,25],"class_list":["post-3627","post","type-post","status-publish","format-standard","hentry","category-predatory-lending","tag-consumer-protection","tag-earned-wage-advance","tag-payday-loan-apps"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>CFPB Halts Worker Payday Loan Evasions - Southwest Center for Economic Integrity<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/economicintegrity.org\/?p=3627\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" 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