McGuireWoods Fintech Trio Pens Law360 Article on CFPB Earned Wage Access Order

February 24, 2021

McGuireWoods partner Carolee Anne Hoover, counsel Joseph Reilly and associate Alexander Gershen — all lawyers on the firm’s fintech industry team — wrote a Feb. 9, 2021, article in Law360 titled “How CFPB Earned Wage Access OrderBenefits Fintech Companies.” In the article, the authors discussed how the Consumer Financial Protection Bureau’s first-of-its-kind earned wage access (EWA) approval order under the compliance assistance sandbox policy signals the agency’s willingness to consider some fintech products that provide consumers with greater financial flexibility and lower-cost alternatives to credit.

In the article, the authors analyzed the implications of the CFPB’s EWA advisory opinion, the sandbox policy, and how the CFPB’s approval order impacts EWA programs.

Underscoring the importance of these developments, the authors wrote, “The CFPB’s decision also comes at a critical time, as many consumers experience significant financial challenges as a result of the COVID-19 pandemic, which could cause a rise in the use of short-term, high-interest loans, as well as increased demand for EWA products.”

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