Washington, D.C. – The Consumer Federation of America released the following statement in response to the interpretive rule issued by the Consumer Financial Protection Bureau on paycheck advance products.

“Workers have always relied on wages to repay advances from lenders. At the end of the day, an advance on wages is still a loan that has to be repaid, and no amount of hair-splitting can change it,” said Adam Rust, Director of Financial Services for the Consumer Federation of America. “Policymakers should be skeptical whenever lenders insist on regulatory exemptions from rules that apply to their competitors. The CFPB’s interpretive rule will level the playing field and promote competition among short-term small-dollar lenders.”