In a Nutshell: Earned wage access and cash advance loans appeal to workers who need financial flexibility to tide them over until their next paycheck. According to a recent Center for Responsible Lending analysis, these small-dollar, short-term loans carry costs and risks similar to payday lending products, including high interest, fees, and account overdrafts. The Center for Responsible Lending is a research and advocacy nonprofit dedicated to creating a fairer financial marketplace with opportunities for all families and individuals. This study reveals the expensive and counterproductive cycle that can arise when workers repeatedly use direct-to-consumer earned wage and cash advance products.
