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Lawmakers hear split testimony on earned‑wage access: supporters call it a safety valve; critics call it payday lending by another name
Summary
Providers, trade groups and employers backed bills to license earned‑wage access (EWA) apps and require no‑cost options; consumer advocates and the National Consumer Law Center warned apps often mimic payday lending and can impose high effective costs.
The Joint Committee on Financial Services heard competing testimony on bills to create a regulatory framework for earned‑wage access (EWA) services, which allow workers to access wages they have already earned before payday.
Proponents from EWA providers and trade groups said that EWA is a non‑credit product that helps workers avoid overdrafts, late fees and payday loans. “Earned wage access offers a responsible option, by allowing workers to access their wages, when they have already earned them without interest, debt collection, or credit reporting,” said Elise Hicks, senior manager of public policy at DailyPay. Industry witnesses and employer‑integrated providers such as PayActiv and Ernan testified that the proposed bills (House 1119 and Senate 725) would preserve access…
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