Payactiv was featured in American Banker recently, with the magazine commenting on the CFPB’s* Approval Order for our EWA program. Here are some excerpts, including a quote from our CLO David Reidy:
“Two recent moves by the Consumer Financial Protection Bureau can be viewed as tentative steps toward resolving the regulatory uncertainty [surrounding EWA]. In late November, the agency issued an advisory opinion that provides a road map for companies that want an assurance that they will not be deemed credit providers…
And last week, the CFPB granted that imprimatur to one such company: San Jose, Calif.-based Payactiv.”
“We view this as good news for the industry, and frankly for employers and employees,” said David Reidy, Payactiv’s chief legal officer. “The more clarity and certainty that we can get, the more we feel this will be a standard benefit offered to working people.”
“The CFPB recently granted [non-loan] status to Payactiv, as long as its products remain within certain parameters. Under one model that got the agency’s blessing, Payactiv charges a $1 fee when employees access earned wages, with fees capped at $5 during each two-week pay period. The bureau said in its earlier advisory opinion that companies that charge “nominal” fees and meet certain additional standards can similarly seek its approval.”
* The CFPB Approval Order relates only to Payactiv’s Payroll Deduction EWA Programs and not to all Payactiv products or services. The Approval Order is a public document, and may be reviewed here.
