The Consumer Financial Protection Bureau (CFPB) has occupied many headlines lately, but the change in leadership largely reflects a different approach to consumer empowerment than a departure in priorities. Among the many ways that the Trump Administration can improve on the status quo is the treatment of earned wage access (EWA) products by the Consumer Financial Protection Bureau (CFPB). EWA products allow employees to access a portion of their earned wages before payday, often for a small fee or free. The cost to employees is significantly lower than other options, including payday loans that often carry annual percentage rates (APRs) exceeding 300%. EWA fees typically range from $1 to $5 per transaction or are covered through alternative funding mechanisms like merchant interchange fees.
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