The Consumer Finance Podcast Regulatory Rollback: Legal Challenges and Opportunities in Earned-Wage Access
Jul 24, 2025
This discussion features Keith Barnett, host of the Payments Pros podcast, and Mark Furletti, a partner at Troutman Pepper Locke, who specializes in Consumer Financial Services. They explore the recent changes in regulatory guidance on earned-wage access (EWA) products, especially after the CFPB's withdrawal. The conversation highlights the history of EWA, the challenges posed by varying state laws, and the importance of compliance for fintechs. They also touch on the rising trend of litigation surrounding EWA, emphasizing the need for clarity in legal frameworks.
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EWA Product Evolution Insight
- Earned wage access (EWA) products evolved as employer-based solutions giving employees early access to earned wages without credit.
- The defining feature is no absolute obligation to repay, distinguishing them from traditional credit under consumer finance laws.
CFPB's EWA Regulatory Flip-Flop
- CFPB guidance on EWA has flip-flopped, with prior opinions distinguishing employer-based EWA as non-credit.
- The most recent rescission leaves no binding federal guidance, adding uncertainty for providers.
Avoid Direct Employee Contracting
- Fintechs and payroll processors should contract only with employers, not directly with employees, to avoid lending law obligations.
- They must ensure fee structures do not create absolute repayment obligations to avoid classification as credit.