Statement from DailyPay Regarding CFPB Proposed Interpretive Rule

We strongly disagree with the CFPB’s proposed interpretive rule.

Characterizing employer-integrated earned wage access products as loans or credit displays a fundamental misunderstanding of what we do.

Click here to view DailyPay’s comment on the CFPB’s proposed interpretative rule.

DailyPay’s EWA does not have the hallmarks of a loan:

No origination fees
No consumer credit checks or approvals
No applications or underwriting
No risk-based pricing
No interest or charges based on the time value of money
No late fees
No reporting to consumer credit agencies
No recourse against the consumer

Instead, DailyPay keeps millions of American workers out of a cycle of predatory payday loans, overdraft fees, and missed payments by enabling them to access their pay when they earn it.

We will continue to work with our employer partners to improve workers’ financial well-being.

DailyPay’s employer-integrated model saves users from predatory payday loans and other predatory credit products.

DailyPay has none of the characteristics or attributes of a loan. DailyPay does not conduct credit checks, does not report to credit agencies, there are no interest charges, or late fees, and DailyPay does not debit bank accounts.

A study commissioned by DailyPay and conducted by Aite Novarica Group showed that 95% of those who were previously reliant on payday loans in any way either stopped using payday loans (81%) or reduced use (15%) after using DailyPay. Nearly nine out of 10 (88%) of those responding said that they stopped or reduced the use of such loans because of DailyPay.