Jared DeMatteis, Chief Legal & Strategy Officer, DailyPay has issued a statemenet regarding the CFPB Proposed Interpretive Rule.
Jared DeMatteis, Chief Legal & Strategy Officer, DailyPay said:
“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. 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, and no recourse to the consumer.”
As noted in the update:
“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.”
As covered, DailyPay, Inc., powered by its innovative technology platform, is on a mission to build a new financial system for everyone.
DailyPay says that it delivers “the industry’s leading on-demand pay solution with modern, insight-driven pay strategies that help America’s leading employers to activate their workforce and build stronger relationships with their employees, so they feel more engaged, work harder, and stay longer.”
DailyPay explains that it works “to ensure that money is always in the right place at the right time for employers, merchants, and financial institutions.”
DailyPay is headquartered in New York City, with operations based in Minneapolis and Belfast.
As covered last month, DailyPay, a worktech company, announced that its industry-leading earned wage access solution that supports the financial wellness of millions of workers nationwide has received Level 2 Certification based on the security requirements of the Texas Risk and Authorization Management Program (TX-RAMP).
As part of the Texas Department of Information Resources (DIR), the TX-RAMP program addresses the “security of commercial cloud computing products and services that process data for Texas state agencies.”
Identifying and deploying TX-RAMP-compliant technologies “helps state government officials manage risk in a cloud-based environment.”
Level 2 Certification is for confidential/regulated data “in moderate or high impact systems and is the highest level of TX-RAMP certification.”