The American Fintech Council (AFC) has intensified its advocacy efforts for Earned Wage Access (EWA), a financial service that allows workers to access their earned wages before the traditional payday. The AFC, which represents fintech companies and banks, is working towards ensuring EWA services remain accessible and responsibly regulated at both federal and state levels.
Phil Goldfeder, CEO of the AFC, highlighted the importance of EWA: “Earned Wage Access is an essential financial tool for millions of American families, offering a safe and responsible alternative to the predatory credit products of the past.” He emphasized that EWA connects workers with their wages more effectively than traditional pay systems.
In a letter addressed to Treasury Secretary Scott Bessent, who also serves as Acting Director of the Consumer Financial Protection Bureau (CFPB), the AFC called for formal rulemaking to better regulate EWA services. The organization criticized previous CFPB actions under then-Director Chopra as “irresponsible and deficient,” noting that past interpretations mischaracterized EWA products.
The AFC's recent testimony before eight state legislatures further underscores its commitment. Upcoming hearings in Nebraska and Utah will continue these efforts. Ian P. Moloney, SVP and Head of Policy and Regulatory Affairs at AFC, stated: “A regulatory framework for Earned Wage Access must be grounded in a clear understanding of its role as an empowering tool for financial stability—not mischaracterized as traditional credit.”
The organization remains dedicated to fostering a transparent financial system through responsible innovation while engaging with states considering guidance on EWA technology.