Letters from Our Readers

"On December 23rd, Vought's bureau issued an advisory opinion concluding that certain earned-wage-access products are not considered 'credit' under the Truth in Lending Act, allowing companies to avoid disclosure of fees."

"Twelve courts have ruled that plaintiffs have sufficiently pleaded that these companies' products constitute credit and that their accompanying fees are subject to the act's protections, contradicting Vought's opinion."

"The Supreme Court's 2024 decision in Loper Bright Enterprises v. Raimondo held that federal courts must exercise independent judgment on questions of statutory interpretation rather than deferring to agency readings of the law."

Russell Vought, director of the Office of Management and Budget, is undermining the Consumer Financial Protection Bureau's role by exempting certain earned-wage-access products from being classified as 'credit' under the Truth in Lending Act. This exemption allows companies to avoid disclosing fees, which contradicts recent federal court rulings that affirm these products should be considered credit. The Supreme Court's decision in Loper Bright Enterprises v. Raimondo emphasizes that courts should not defer to agency interpretations, indicating a potential conflict between Vought's advisory opinion and judicial authority.

Read at The New Yorker