This is a news story, published by CNBC, that relates primarily to The Consumer Financial Protection Bureau news.
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paycheck advance programsCNBC
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88% Informative
The Consumer Financial Protection Bureau proposed a rule that would label paycheck advance programs as loans.
Such programs allow workers to tap their paychecks before payday , often for a fee.
Under the proposed rule, users would see fees expressed as an APR , like credit-card interest rates.
More than 7 million workers accessed about $22 billion in wages before payday in 2022 .
Workers made 27 transactions a year and paid $ 106 in total fees, on average, CFPB says.
If finalized, the rule would allow the agency to bring enforcement actions against companies that don't make appropriate disclosures.
The rule doesn't prohibit providers from charging fees, but it merely requires them to disclose it, expert says.
VR Score
93
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