New analysis details serious privacy risks, higher consumer costs, and technical failures tied to Catalis’ efforts to expand state databases to Earned Wage Access products

Washington, D.C. (January 22, 2026) – The American Fintech Council (AFC), the premier industry association representing responsible fintech companies, innovative banks, and the largest number of leading earned wage access (EWA) providers, released a new white paper  warning state policymakers and regulators against proposals to expand state-mandated lending databases to non-loan responsible Earned Wage Access (EWA) products. The paper, entitled Company Profits Over Consumer Protections: Catalis’ Efforts to Expand Harmful Databases, finds that these mandates would jeopardize consumer privacy and fail to deliver meaningful consumer protection.

The white paper details the overwhelming deficiencies of existing database systems, which were designed and implemented in a few states specifically for payday loans. These shortcomings for their intended purpose underscore that the systems are poorly equipped to handle EWA products. Attempting to fit responsible and affordable modern financial tools into outdated systems could create higher costs for workers, operational inefficiencies, and technical challenges that make effective regulatory oversight difficult. AFC also notes that expanding the databases would require the collection of additional sensitive personal information, increasing the risk of fraud, data misuse, and privacy breaches.

“Including earned wage access services, which are not loans, in a database of lenders is counter to all principles of transparency, regulatory clarity, and consumer protection,” said Phil Goldfeder, CEO of the American Fintech Council. “These proposals would not help consumers; in fact, they would increase confusion in the marketplace and threaten to limit the very benefits EWA services provide to workers—all while creating extra costs and regulatory hurdles for responsible providers. What EWA users and providers need are clear and transparent rules that respect EWA’s fundamental differences from traditional credit products and account for the significant benefits responsible EWA offers.”

The white paper also outlines how Catalis, the sole operator of all existing state payday lending databases, has aggressively lobbied to preserve and expand its exclusive control of these systems, despite widespread doubts about their efficacy. According to AFC, this conflict of interest has resulted in wasted taxpayer dollars, higher compliance costs, and significant privacy concerns, without reducing cycles of debt or improving regulatory outcomes.

“Expanding state-mandated databases to cover EWA products would put workers at risk and do little to enhance consumer protections. Catalis has poured over half a million dollars into lobbying efforts under the guise of consumer protection, when, in fact, it is seeking to increase its revenue,” said Ian P. Moloney, Chief Policy Officer at the American Fintech Council. “Sound consumer protection policy should be evidence-based and focused on real outcomes, not on entrenching a single vendor’s business model.”

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.

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