rich 1.0 Action Network https://actionnetwork.org <link href='https://actionnetwork.org/css/style-embed-v3.css' rel='stylesheet' type='text/css' /><script src='https://actionnetwork.org/widgets/v6/letter/big-tech-payday-lending-scam?format=js&source=widget'></script><div id='can-letter-area-big-tech-payday-lending-scam' style='width: 100%'><!-- this div is the target for our HTML insertion --></div> Americans for Financial Reform https://actionnetwork.org/groups/afr-advocacy-fund-c4 https://can2-prod.s3.amazonaws.com/groups/default_facebook_images/000/014/858/original/AFR_Action_Network_Default_(1).png?1738796429 Predatory payday lending in an app is still predatory lending. But not according to the American Legislative Exchange Council (ALEC), an ultraconservative superlobby group funded by morally questionable resources that works secretly to draft templates for bills that are then copied and introduced into state legislatures across the country. In the past, ALEC has written prototypes for federal and state laws that opposed gun control, crushed worker unions, and electioneering. Now, ALEC is working with workplace payday loan “earned wage access” providers to create legislation that enables them to rip off workers who get paycheck advances through a phone app under the guise of “earned wage access,” which enables employees to get their wages before the day they are paid. ALEC claims these advances do not qualify as “payday loans,” but their intent is to get around laws designed to protect consumers from predatory loans. Payday loans are regulated, and even banned in some states, due to high fees and harsh repayment plans that can result in damaged credit scores, repossessions, and court hearings. Marketed largely in Black, Brown, and low-income communities, these loans can capture victims in a spiral of debt, as they take out new loans to pay the exorbitant fees and interest on older ones. They’re the definition of a predatory loan. Since ALEC introduced its earned-wage access template in 2022, the language has appeared in both federal and state legislation, including laws passed in Kansas, Missouri, Nevada, South Carolina, and Wisconsin. Still we can work to overturn those laws and stop this from spreading nationwide. Click ‘START WRITING’ to sign and send a letter demanding your Governor and State Legislators don't fall for this payday lending scam and regulate “earned-wage access” products the same as payday loans to protect consumers from predatory lending now! https://actionnetwork.org/letters/big-tech-payday-lending-scam