The rise of ‘fringetech’: Regulatory risks in earned-wage access

In the absence of regulatory guardrails, some earned wage access programs can perpetuate, and in some instances exacerbate, the very risks providers claim to eliminate when displacing short-term creditors like payday lenders. This article proposes a federal-level regulatory framework based on lending laws that addresses some of these unmitigated risks through the imposition of consumer-protection requirements such as uniform price disclosure, ability-to-repay rules, optional amortization mechanics, mandatory credit reporting, and a right-to-rescind assignment.

  • Date: 18/04/2021
  • Sector: Any
  • Topics: Digital technology, Inclusive finance, Sustainable enterprises, Workers' rights
  • Regions: Americas
  • Resource type: Publications
  • Institutions: Northwestern University Law Review