The Consumer Financial Protection Bureau (CFPB) issued an advisory opinion on December 23, 2025, that resolves significant regulatory uncertainty surrounding whether earned wage access (EWA) products and are “credit” for purposes of Regulation Z, the Truth in Lending Act’s (TILA) implementing regulation.
The advisory opinion establishes four critical characteristics that define “Covered EWA”—products it clarifies are not considered credit under Regulation Z: (i) transactions must be based on accrued wages using actual payroll data; (ii) use payroll process deductions; (iii) include no recourse against the worker if deductions are insufficient; (iv) and involve no credit risk assessment of individual workers.
According to the advisory opinion, Covered EWA is not credit because it does not provide workers with the right to defer payment of debt or to incur debt and defer its payment. The worker incurs no financial liability or obligation because Covered EWA facilitates access to wage amounts that workers have already earned and to which they are already entitled. The payroll process deduction serves to ensure the consumer is not effectively compensated twice for the same work, rather than representing repayment of a debt.
The opinion also notes that expedited delivery fees are generally not finance charges when consumers have a reasonable means for receiving payment without paying a fee, such as standard ACH transfer. However, if a provider makes it too difficult for consumers to select un-expedited delivery, the resulting fees may effectively be imposed and could qualify as finance charges.
Bona fide tips provided voluntarily by consumers cannot be finance charges, as it is inherent in the meaning of “tip” that it is not imposed. However, if tipping is not truly voluntary—for example, if the provider makes it too difficult to avoid tipping—the resulting payment may be imposed and qualify as a finance charge.
This advisory opinion does not state that EWA products outside the Covered EWA definition are necessarily credit under Regulation Z. By establishing clear criteria, the CFPB has created a framework allowing providers to structure products with greater regulatory certainty while preserving the ability to address emerging consumer protection issues in this rapidly evolving space.
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