The American Fintech Council (AFC) has taken a leading role in supporting the South Carolina legislation aimed at creating a safe regulatory structure for Earned Wage Access (EWA). In a letter addressed to The South Carolina House Committee on Labor, Commerce, and Industry, AFC and its members strongly endorsed the bipartisan legislation (S.700) that seeks to regulate the growing financial service product.
Phil Goldfeder, Chief Executive Officer of the American Fintech Council, emphasized the industry's commitment to providing safe financial services to underserved families, stating, "Our members are united in their desire to create and offer safe innovative financial services to families long forgotten by traditional financial institution." Goldfeder highlighted the importance of responsible EWA providers in offering a secure alternative to higher-cost options, benefiting over 500,000 South Carolina families.
The industry letter, which follows AFC's in-person testimony by Elizabeth Gorz, AFC Chief Strategy Officer and Head of Legislative Affairs, before the House Subcommittee on Business Commerce in April, expressed strong support for the legislation. The letter stressed the need for immediate passage of the legislation, noting that it strikes a balance between responsible innovation and consumer protection, tailored to fit the EWA industry.
The letter to the South Carolina House Committee outlined the key provisions of the legislation, including clear standards for acceptable EWA services, robust fee disclosures, and the flexibility for users to cancel the service at any time. AFC and its members emphasized that these provisions are essential in ensuring that South Carolinians can access EWA services in a safe and secure manner.
Elizabeth Gorz reiterated AFC's commitment to promoting innovation and transparency in the financial system, stating, "Our mission at AFC is to promote an innovative, transparent, inclusive, and customer-centric financial system by supporting responsible innovation in financial technology (Fintech) and encouraging sound public policy." Gorz emphasized AFC's role in setting industry standards for responsible EWA services, which members adhere to both nationally and in South Carolina.
AFC's advocacy for a clear and consistent regulatory framework for EWA aims to avoid duplicative or conflicting requirements while accurately reflecting the nuances of the financial service. The industry association continues to champion the development of best practices and regulatory standards to ensure the responsible provision of EWA services in South Carolina.