The CFPB proposed rule aims to regulate Earned Wage Access apps, comparing them to payday lending, with concern over high interest rates and fees, impacting workers, many earning less than $50,000 yearly.
Earned Wage Access apps offer short-term loans between paychecks, but with high interest rates and frequent usage, they resemble a revolving credit card balance, potentially burdening users with over 100% APR.
#consumer-financial-protection-bureau #earned-wage-access-apps #truth-in-lending-act #payday-lending #financial-regulations
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