What Payactiv’s TILA Exemption Means for Innovation in Earned Wage Access
Date: January 19, 2021
We are proud to announce the Consumer Financial Protection Bureau’s Approval Order recognizing Payactiv’s Earned Wage Access (EWA) Program as an important innovation and a true credit alternative for employees! In a first for the EWA industry—and for the CFPB’s Office of Innovation—the Bureau has confirmed that Payactiv’s EWA Program as described in the order is exempt from federal Truth in Lending Act (TILA) and Regulation Z rules governing creditors.
Join David Reidy, Chief Legal Officer, for a discussion of Payactiv’s groundbreaking Approval Order; learn what this means for the future of EWA, and lessons for innovation in fintech.
David is Payactiv’s Chief Legal & Compliance Officer. Prior to joining Payactiv, he was a partner at McGuireWoods where he founded the firm’s San Francisco office and led the Silicon Valley-focused fintech practice. David is a longstanding supporter and Board member of the San Francisco Justice & Diversity Center, providing pro bono legal services and promoting diversity and inclusion in the legal profession. He has received awards and recognition from the Legal 500, National Law Journal, Law360, Bloomberg Law, Chambers & Partners, the Recorder newspaper and the San Francisco Bar Association.
*The Payactiv Visa Prepaid Card is issued by Central Bank of Kansas City, Member FDIC, pursuant to a license from Visa U.S.A. Inc. Certain fees, terms, and conditions are associated with the approval, maintenance, and use of the Card. You should consult your Cardholder Agreement and the Fee Schedule at payactiv.com/card411. If you have questions regarding the Card or such fees, terms, and conditions, you can contact us toll-free at 877-747-5862, 24 hours a day, 7 days a week.
1 Many (but not all) employers, government benefits providers, and other originators send direct deposits early with an effective of 1-2 days later. Beginning with your second direct deposit of at least $5 from the same source, Central Bank of Kansas City (CBKC) will post the funds to your Payactiv Visa Card when we receive it, rather than on the effective date. This may result in your having access to the funds sooner. The date CBKC receives your direct deposit and the effective date are controlled by the originator.