The American Fintech Council (AFC) is urging Kansas Governor Laura Kelly to sign House Bill 2560, which aims to establish a regulatory framework for Earned Wage Access (EWA) services. The bill seeks to implement safeguards and standards for EWA providers, ensuring consumer protection in Kansas.
Phil Goldfeder, CEO of the AFC, praised the Kansas legislature for their work on the bill. "We commend the Kansas state legislature for their thoughtful review of this emerging industry and for siding with Kansas families when crafting and passing this law," he stated. Goldfeder emphasized that responsible EWA providers offer a safe alternative to predatory loans, allowing families access to their earnings without high costs.
In February, AFC testified before the Kansas Senate Committee on Financial Institutions and Insurance in support of the proposed legislation. They argue that HB 2560 balances innovation with consumer protection by establishing clear standards for EWA services under a registration regime.
A letter from AFC and its members urged Governor Kelly to sign the bill, highlighting its bipartisan support. "At every stage of the legislative process, EWA has received broad bipartisan support, with nearly all members of the Kansas Legislature voting in favor of the bill," they wrote. The letter noted that over 50,000 Kansans have used an EWA product through various means.
The AFC advocates for a consistent regulatory framework that reflects the nuances of financial services like EWA. In 2023, they released industry standards emphasizing best practices and clarifying that EWA is not a loan but rather access to earned wages before standard pay periods.
These standards include transparency, no interest or fees, no debt collection activities, and a requirement for a "no cost" option for users. As an association representing major EWA providers, AFC continues to promote best practices and consumer protections within the industry.