In a letter to the Center for Responsible Lending (CRL) and National Consumer Law Center (NCLC), AFC calls for evidence-based policymaking and emphasizes need for responsible data, sound methodology and modern financial inclusion policies

Washington, D.C. (October 22, 2025) – The American Fintech Council (AFC), the premier industry association representing responsible fintech companies, innovative banks, and the largest number of responsible Earned Wage Access (EWA) providers, sent a letter to the Center for Responsible Lending (CRL) and the National Consumer Law Center (NCLC) challenging the flawed methodology and conclusions of their recently released report on EWA products. AFC outlined fundamental deficiencies in the report’s data sampling, analytical approach, and policy recommendations, which confound its conclusions and fail to accurately represent the true EWA landscape.

“Millions of workers use responsible EWA to bridge pay periods and avoid other costly alternatives, including predatory loans and overdraft fees. The CRL report unfortunately recycles the same mischaracterizations we’ve seen before, failing to distinguish between transparent, responsible products and those that pose legitimate concerns,” said Phil Goldfeder, CEO of the American Fintech Council. “We are proud of our members’ commitment to consumer protection and regulatory compliance and we will continue to advocate for evidence-based policymaking that actually improves financial outcomes for working families.”

AFC’s letter catalogues numerous flaws in the report, which focuses on a limited sample of financially strained users to draw conclusions about the entire EWA industry while ignoring broader usage patterns, product distinctions, and socioeconomic context. AFC also flagged the misrepresentation of one-time or voluntary fees as annualized APRs—an apples-to-oranges comparison that misleads policymakers and the public.

The letter also notes that well-designed EWA solutions often incorporate structural safeguards such as payroll integration, withdrawal caps, and built-in controls to mitigate overdrafts and prevent misuse. AFC warns that CRL’s recommendation to classify nonrecourse wage access as a form of credit would inappropriately restrict access to one of the most promising financial inclusion tools for workers.

“This kind of research—built on biased samples, faulty assumptions, and ideological framing—doesn’t move the conversation forward. It risks misleading policymakers and hurting the very communities we all aim to serve,” said Ian P. Moloney, SVP and Head of Policy and Regulatory Affairs at AFC. “We call on CRL and NCLC to engage constructively with industry leaders and regulators in developing fair, modern rules that recognize responsible innovation can be a force for good.”

A standards-based organization, AFC is the premier trade association representing the largest financial technology (Fintech) companies and innovative banks offering embedded finance solutions. AFC’s mission is to promote 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.

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