On April 7, an earned wage access (EWA) provider filed a complaint seeking declaratory relief against the New York Office of the Attorney General (OAG) in U.S. SDNY. The plaintiff requested relief from the OAG’s enforcement actions that would have asserted several violations of state and federal law, as previewed for plaintiff in the OAG’s subpoenas, demands and notices. The plaintiff requested declaratory judgements on three issues: that a real and justiciable controversy exists, that plaintiff’s representations and product offerings do not violate the CFPA or New York State law.

According to the complaint, the plaintiff’s EWA program integrated with employers’ payroll systems to provide workers with real-time information about their earnings and allow workers to access their earnings before the company’s traditional payroll date. The OAG characterized plaintiff’s product as a loan subject to New York State usury law and other consumer protection statutes. The plaintiff disputed this characterization, asserting the product is not a loan under New York State law because workers have no obligation to repay the funds, and therefore the advance of funds cannot be a loan. In requesting declaratory relief, the plaintiff alleged the OAG’s investigation has adversely affected its business operations and financial planning.