Washington, D.C. (February 6, 2026) - The American Fintech Council (AFC) and the Financial Technology Association (FTA) today submitted joint Amicus Briefs in Vickery v. Empower Finance, Inc. and Moss v. Cleo AI, Inc., outlining how Earned Wage Access (EWA) is a consumer-friendly financial tool that is distinct from a loan and provides workers access to their already earned wages. The trade groups urged the Ninth Circuit Court of Appeals to reverse flawed district court decisions that mischaracterize EWA as extensions of credit, potentially jeopardizing access to this valued financial product.

“EWA allows workers to access wages they've already earned from work they've already done, serving as an important alternative to high-interest predatory loans,” said Phil Goldfeder, CEO of the American Fintech Council. “When courts misapply lending laws to non-loan products, they risk cutting off access to safe, transparent financial tools and pushing consumers toward harmful alternatives. We encourage the court to recognize the nuances of EWA products and ensure the regulatory structure reflects how these products truly work.”

“Earned wage access frees workers from an arbitrary and rigid payroll cycle that doesn’t meet their financial needs,” said Penny Lee, President and CEO of the Financial Technology Association. “These products are not loans and should be regulated in a way that reflects their unique characteristics. We respectfully urge the Ninth Circuit Court of Appeals to follow the text of the law and protect access to these valued financial tools.”

EWA allows workers to obtain a portion of their earned wages ahead of the regular payroll schedule, empowering them to use their own wages to cover regular expenses and emergency needs. These products offer a safe and easy-to-use alternative to high-interest loans or predatory payday lending. Critically, EWA does not charge interest, late fees, or penalties, and there is no legal obligation to repay a transfer. If a user declines to repay, the only effect is that they cannot obtain further transfers until they repay the current transfer.

In both Vickery v. Empower Finance, Inc. and Moss v. Cleo AI Inc., district courts held that the plaintiffs had plausibly alleged violations of the Truth in Lending Act and the Military Lending Act. However, those decisions are severely flawed because those laws only apply to credit products, and they define “credit” as the right “to incur debt and defer its payment.” But EWA users incur no debt because they have no obligation to repay a transfer. Furthermore, optional expedited transfer fees are not finance charges, because they are optional fees selected by users, not mandatory fees imposed by EWA providers.

Federal courts should not disrupt the ongoing, nationwide EWA policymaking process by applying ill-fitting laws designed for credit to EWA products. EWA is classified as a service distinct from loans in 11 states, and Congress is considering bipartisan legislation to regulate EWA and appropriately recognize it as such. In 2025, the Consumer Financial Protection Bureau issued an Advisory Opinion that similarly recognized EWA as a product separate from extensions of credit.

Read the joint trades’ full amicus briefs in Vickery v. Empower Finance, Inc. and Moss v. Cleo AI, Inc. To learn more, read “Just the Facts: Earned Wage Access.”

ABOUT AFC
A standards-based organization, the American Fintech Council (AFC) is the largest and most diverse trade association representing financial technology (fintech) companies and innovative banks. On behalf of over 150 member companies and partners, AFC promotes a transparent, inclusive, and customer-centric financial system by supporting responsible innovation in financial services and encouraging sound public policy. AFC members foster competition in consumer finance and pioneer products to better serve underserved consumer segments and geographies.

ABOUT FTA
The Financial Technology Association (FTA) is a network of fintech leaders shaping the future of finance. We champion the power of technology-driven financial services to catalyze innovation and advocate for modernized policies and regulations that reflect the digital transformation.

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