Every week at All Saints Church we put our faith into action. This week we urge regulation of harmful financial products and practices that have recently been pushed on communities of color and low-income communities in the name of “access to credit” and “financial innovation.” These products are nothing more than traditional predatory financial products cloaked in a digital veneer. Please sign a petition to the Consumer Financial Protection Bureau urging that the purveyors of these predatory products be held accountable and regulated.

Financial tech (fintech) companies like EarnIn and PayActiv push loans right through phone apps, calling them “advances” on paychecks, with fees loaded on top–all the same predatory hallmarks of payday loans.

These apps are being falsely marketed to people, especially working women of color, as a risk-free, low-cost way to deal with an emergency expense.  They hide the true cost behind “tips” or expedite fees, but end up collecting these fees from users at predatory lending levels. Recently, California’s financial regulator found these cash advance apps carry annual interest rates over 300%, making them as costly as predatory payday loans. And just like payday lenders, these apps trap working people in a cycle of debt that they struggle to get out of.

Why is this possible? Fintech companies have found loopholes in state consumer credit laws designed to protect borrowers—claiming that earned wage advances are not loans or that the companies themselves don’t count as lenders as defined by law, and by disguising the true cost of their products to side step interest rate caps.

Silicon Valley companies are working to codify their predatory lending models. We can’t let them get away with this, we need to keep all Americans from being exploited by digital payday lenders.

Sign the petition: We cannot allow fintech companies to undo efforts to protect consumers. Hold Silicon Valley accountable. Regulate digital payday lenders.

~ National Consumer Law Center

Options to Take Action:

1. Sign a letter at the Action Table on Sunday.
2. Download, sign and mail an action letter here:
   Action Letter to the Consumer Financial Protection Bureau
3. Click here and go to the Union of Concerned Scientists action.

Information from the National Consumer Law Center:
California Moves to Regulate Cash Advance Apps, Cal Matters, June 5, 2023
Will California crack down on cash apps that trap women in debt?, Los Angeles Times, 2023 May 25
Earned Wage Advance: States Should Regulate as Credit, Protect Consumers
Center for Responsible Lending, Apr2023

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If you ever need to look up your member of the U.S. House of Representatives or your U.S. Senators check here: www.house.gov and www.senate.gov.

To find contact information for your California State Senator or California State Assemblymember check here: www.senate.ca.gov and www.assembly.ca.gov.