Earned Wage Access in the Crosshairs of the Center for Responsible Lending

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In this episode of the Consumer Finance Monitor Podcast, we examine one of the most closely watched and increasingly controversial developments in consumer finance: earned wage access (EWA) products.

EWA products allow workers to access a portion of wages they have already earned before their scheduled payday. Proponents describe these products as a valuable financial tool that helps consumers manage cash-flow shortfalls without resorting to traditional payday loans. Critics, including the Center for Responsible Lending (CRL), argue that EWA products function as high-cost credit, often involving opaque fees that can trap consumers in cycles of debt.

Our panel brings together industry and advocacy perspectives to explore the research, legal arguments, and regulatory uncertainty surrounding EWA, a market that has grown rapidly but remains unevenly regulated.

Meet the Speakers

• Alan Kaplinsky – Host and moderator. Founder and former Practice Group Leader of Ballard Spahr’s Consumer Financial Services Group; now Senior Counsel.
• Lucia Constantine – Senior Researcher at the Center for Responsible Lending, focusing on mortgage lending and predatory debt practices.
• Yasmin Farahi – Deputy Director of State Policy and Senior Policy Counsel at CRL, specializing in small-dollar lending and state consumer protection initiatives.
• Joseph Schuster – Partner in Consumer Financial Services Group at Ballard Spahr, with extensive experience advising on earned wage access products and their legal and regulatory treatment.

Key Topics Covered in the Episode

• What Is Earned Wage Access?
  An overview of EWA products, how they operate, and why they have become a focal point for regulators and consumer advocates.
• Consumer Protection vs. Industry Innovation
  CRL presents research suggesting that EWA products operate as high-cost credit and may contribute to debt accumulation, while industry participants argue the products provide needed liquidity and differ fundamentally from traditional loans.
• Fees, Tips, and Consumer Understanding
  A discussion of common pricing models, including expedited access fees and voluntary “tips,” and whether consumers fully understand the true cost of using EWA services.
• Research Findings
  CRL reviews studies conducted by it based on anonymized transaction data indicating frequent repeat usage, escalating fees, and increased overdraft activity among some users.
• The Regulatory and Legal Landscape
  An examination of ongoing litigation, divergent state approaches, and federal regulatory ambiguity. While some states regulate EWA as credit, others have carved out exemptions. Courts are increasingly being asked to determine whether EWA products constitute “loans” under existing law.
• Industry Responses and Safeguards
  Discussion of non-recourse structures, voluntary fee models, and industry-led efforts to mitigate consumer harm.
• Policy Outlook
  Consideration of congressional interest, state-level reform efforts, and the likelihood of future regulatory intervention.

Why This Episode Matters

The debate over earned wage access is still in its early stages, but the outcome will have significant implications for fintech providers, employers, consumers, and regulators. This episode provides essential context and analysis for financial services professionals seeking to understand how EWA fits within existing consumer credit frameworks, and how that framework may change.

Consumer Finance Monitor is hosted by Alan Kaplinsky, Senior Counsel at Ballard Spahr and founder and former chair of the firm’s Consumer Financial Services Group. We invite you to subscribe on your preferred podcast platform for weekly insights into key developments in consumer financial services law and regulation.

Episode Notes

Since its recording, there have been a few developments relevant to this episode. For instance, on December 22, 2025, the Consumer Financial Protection Bureau issued an advisory opinion that states the Truth In Lending Act (TILA) does not apply to certain “earned wage access (EWA) products,” and it rescinds a proposed interpretive rule issued under former CFPB Director Chopra that classified these products as credit subject to TILA with their fees considered finance charges. The Center for Responsible Lending expressed opposition to this latest advisory opinion. On January 13, 2025, the House Financial Services Committee held a hearing on financial technology that included consideration of draft legislation on “Earned Wage Access,” which CRL refers to as “payday loan apps.” Around 200 nonprofits have written to Congress about their opposition to the version of this bill as introduced last session of congress.

View the recording transcript here.

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