visimoney
TLDR:
- The Financial Technology Association (FTA) is urging the Connecticut General Assembly to modify House Bill 5140, which categorizes earned wage access services as loans, potentially harming workers.
- Most Americans want to get paid more frequently than once or twice a month, and they opt for Earned Wage Access services to tap into their already-earned wages with no mandatory fees, interest, or impact on credit scores.
The Financial Technology Association (FTA) is urging the Connecticut General Assembly to modify House Bill 5140, which categorizes earned wage access services as loans and could potentially harm workers who cannot access this option from their employers. The FTA President and CEO, Penny Lee, stated that several Earned Wage Access providers have already left Connecticut due to restrictive guidelines, leaving workers without a no-cost option to access their wages.
A major priority for American workers is pay flexibility, as they face challenges handling routine or emergency expenses between pay cycles. Earned Wage Access allows individuals to access their already-earned wages without mandatory fees, interest, or impact on credit scores. FTA has endorsed legislation at the state and federal levels to properly categorize Earned Wage Access as a non-credit product and establish consumer protection requirements.
Unfortunately, House Bill 5140 does not provide a workable standard for the thousands of Connecticut residents who choose their own Earned Wage Access provider. The legislation takes away workers’ choice and reduces financial services competition in the state. FTA has raised concerns with the General Assembly Banking Committee and is advocating for modifications to support workers’ access to Earned Wage Access services.
