Apps that pay you early might now be treated like loans

The US consumer protection agency just removed its guidance that said early wage access products were not loans. This means companies offering these apps might now have to follow the same disclosure and fee rules as credit card companies.

Many apps let people get paid a portion of their earned wages before payday, often for a fee. Because these apps were not considered loans, they avoided federal rules that protect consumers from hidden costs and high interest. The agency can now apply those protections, which could force companies to be more transparent about fees and limit what they can charge.