LA: Testimony in Support of LA HB 368

TO: Louisiana House Commerce Committee
FROM: Phil Goldfeder, CEO, American Fintech Council (AFC)
DATE: May 12, 2025
SUBJECT: House Bill 368

Position: Support.

Testimony:

Thank you Chair Deshotel, Vice-Chair Polly, and members of the House Commerce Committee. My name is Phil Goldfeder, I am former state legislator and continue my public service as the CEO of the American Fintech Council (AFC). I am here to testify in support of House Bill 368 (HB 368).

AFC is the premier trade association representing the largest financial technology (Fintech) companies and innovative banks, including the biggest providers and largest number of Earned Wage Access (EWA) companies. Our mission is to promote a transparent, inclusive, and customer-centric financial system by supporting responsible innovation in financial services and encouraging sound public policy.

EWA is a fintech product that allows workers to access the wages they have already earned in the current pay period before their employer’s designated pay day. This bill shapes a regulatory framework for companies to safely and responsibly offer EWA in Louisiana. EWA is an innovative financial tool that empowers workers to access their wages in a way that best fits their lifestyle rather than keeping them tethered to arbitrary payroll cycles. Users can opt to access EWA through their employers, as stand-alone products, or as part of a subscription. The EWA industry supports HB 368 to legally differentiate EWA from legacy financial products, including payday loans.

To ensure that EWA providers safely and effectively serve consumers, AFC has established clear standards on what constitutes responsible EWA. Our standards require

• A voluntary no-cost option be made available for all users;

• Strong fee disclosures represented in a clear and transparent manner;

• No underwriting or credit checks and

• Ability for users to cancel the EWA service at any time, meaning it does not have to be repaid.

The provisions of HB 368 reflect those standards, and we are grateful to Representative St. Blanc for introducing this bill as a nuanced and thoughtful approach to regulating this nascent industry.

Establishing the regulatory framework enumerated in HB 368 will provide a critical financial choice for Louisiana workers and allow responsible EWA services to flourish in the Bayou State. This bill will help workers access their pay by giving EWA providers a clear and functional regulatory path that recognizes the nuances of the service.

In closing, I applaud the Louisiana legislature for taking up this issue in a timely manner and seeking a pragmatic solution to regulation. I am happy to answer any questions you may have.

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