The American Fintech Council (AFC), an industry association representing Fintech companies, including the largest earned wage access (EWA) providers, has joined with members in a letter to the South Carolina House Committee on Labor, Commerce and Industry endorsing legislation to regulate the burgeoning financial service product. This bipartisan legislation will implement key safeguards, ensure transparency and apply important standards for EWA providers to protect South Carolina consumers. The industry letter follows the in-person testimony by Elizabeth Gorz, the American Fintech Council’s chief strategy officer and head of legislative affairs before the House Subcommittee on Business Commerce in April.
“Our members are united in their desire to create and offer safe innovative financial services to families long forgotten by traditional financial institution,” said Phil Goldfeder, chief executive officer of the American Fintech Council. “AFC differentiates itself as an association by developing industry best practices and regulatory gold standards for emerging innovative products and companies.
“Responsible EWA providers offer a safe alternative to higher priced alternatives and are utilized by more than 500,000 South Carolina families ensuring they have low or no cost access to their pay when they need it most.”
In a recent letter to the South Carolina House Committee on Labor, Commerce, and Industry in support of bipartisan legislation (S.700), the American Fintech Council, together with eight members expressed strong support for the legislation. Urging immediate passage, the letter states that this legislation properly balances responsible innovation with a pragmatic, consumer-protected regulatory framework that fits the EWA industry. The American Fintech Council said the new legislation establishes clear standards for acceptable EWA services regulated under its registration regime in a manner that reflects the nuances and optionality of the EWA industry while also protecting consumers from irresponsible actors.
“S.700 establishes clear standards for acceptable EWA services regulated under its registration regime in a manner that reflects the nuances and optionality of the EWA industry while also protecting consumers from irresponsible actors,” wrote AFC and members in their letter to the South Carolina House Committee. “Specifically, the bill’s provisions requiring strong fee disclosures represented clearly and transparently; and the ability for users to cancel the EWA service at any time present strong consumer protections for South Carolinians that will ensure they can continue to use EWA services in a safe and secure manner.”
The American Fintech Council said it has publicly advocated for a clear and consistent regulatory framework for EWA that avoids duplicative or diverging requirements and accurately reflects the nuances of the financial service.
“Our mission at AFC is to promote an innovative, transparent, inclusive, and customer-centric financial system by supporting responsible innovation in financial technology (Fintech) and encouraging sound public policy,” said Gorz in her April testimony before the committee. “AFC represents the largest and the most providers of Earned Wage Access products and services. As such, we have a responsibility to the industry, but even more importantly, to the South Carolinian consumers they serve. AFC has developed comprehensive standards for what constitutes best practice for responsible EWA service providers, which our members adhere to in their offerings both nationally and in South Carolina.”
