Consumer Credit Offered to Borrowers in Advance of Expected Receipt of Compensation for Work

The Consumer Financial Protection Bureau (CFPB) is charged with promoting competition and innovation in consumer financial products and services. After careful study of emerging offerings in the paycheck advance marketplace, including those marketed as "earned wage advances" and "earned wage access," the CFPB is proposing this interpretive rule to help market participants determine when certain existing requirements under Federal law are triggered. The proposed interpretive rule would also address certain costs that are in substantial connection with extensions of such credit, such as expedited delivery fees and costs marketed as "tips."

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Data Spotlight: Developments in the Paycheck Advance Market

PRESS RELEASE

CFPB Proposes Interpretive Rule to Ensure Workers Know the Costs and Fees of Paycheck Advance Products