CFA Statement in Response to CFPB Interpretive Rule for EWA Products

Washington, D.C. - The Consumer Federation of America released the following statement in response to the Consumer Financial Protection Bureau's (CFPB) new interpretive rule for earned wage advance products.

"The CFPB's interpretive rule is simply an opinion," said Adam Rust, Director of Financial Services at the Consumer Federation of America. "Loper Bright makes clear that courts, not agencies, have the final say in interpreting the law, and so far six different courts have found that earned wage advances are credit, that their fees are finance charges, and that EWA loans fall squarely under the Truth in Lending Act. Years ago, prudent regulators rejected similar attempts by payday lenders to dodge being defined as creditors. The CFPB is out of step with both the law and common sense."