Regulatory Landscape for EWA
As EWA has become more widespread, Payactiv and other EWA providers have worked with policymakers at the federal and state levels to influence regulations that would codify guardrails for consumers, while at the same time promoting growth in the industry.
At the federal level, the Consumer Financial Protection Bureau (CFPB) released an Advisory Opinion in November 2020 to provide important clarification on how the agency viewed Earned Wage Access. The Advisory Opinion outlined a narrow employer-based EWA model with several criteria, and determined that model was not credit or a loan. That means that regulation under TILA would not apply to EWA models that incorporate those criteria.