Why can’t Connecticut residents use EarnIn?

Update for Connecticut Residents

EarnIn launched the EarnIn Customer Support Fund with a $50,000 donation to alleviate the financial burden facing Connecticut residents caused by the state’s lack of EWA access. 

Through the program, which is facilitated by The Hispanic Coalition of Greater Waterbury (HCGW), EarnIn is donating $50,000 to help Connecticut residents who used an EWA product (including EarnIn) in 2023 and have endured harm since January 1, 2024 because of an inability to access their earned wages. This money will be used to reimburse Connecticut residents for fees such as a bank overdraft fee, credit card late fee, or late fee on a utility or phone bill.

Any Connecticut resident who used an EWA product (including EarnIn) in 2023 can apply to have EarnIn reimburse up to $105 for any overdraft or late fees they were charged in 2024. Simply fill out the short application here! It takes 5 minutes, and the HCGW will review your application quickly.

 

Why can’t Connecticut residents use EarnIn? 

On January 1, 2024, a new Connecticut law is set to go into effect that changes how Connecticut treats our Earned Wage Access products (Cash Out & Balance Shield) and prevents us from offering it across the state. As a result, Cash Out & Balance Shield transfers will no longer be available starting 4 p.m. ET on 12/31/2023. 

We’ve tried collaborating with the Connecticut Department of Banking (whose regulation interpreting the law creates the deadline) to clarify that Earned Wage Access is not lending to allow us to provide you uninterrupted service but, the DOB insists on misclassifying Cash Outs as loans.

If you are blocked from using EarnIn, but do not live in Connecticut, please contact support so we can verify your residence and update your account. 

Every day, hundreds of thousands of customers, like you, use EarnIn to access their hard-earned pay. We believe your pay should be available when and where you need it, so you have more options, wherever life takes you.

For EarnIn Card holders

For EarnIn Card holders, EarnIn will temporarily offer free Lightning Speed transfers starting January 1st. Unfortunately, EarnIn Card for those in Connecticut is at risk because we can’t permanently offer the service for free.

How Connecticut’s New Law Impacts EarnIn

The Connecticut Department of Banking has issued a response to some community members stating EarnIn can continue to operate in Connecticut if we do not impose fees and other finance charges resulting in an annual percentage rate (APR) of greater than 36%. 

In the new guidance, the Connecticut government addresses you as “Borrower,” asserting that access to pay you’ve already earned is a loan. Unlike a loan, EarnIn does not require a credit check, does not accrue interest and never sends customers to collections. Same-day pay is a very different product than a loan. Sadly, Connecticut’s actions limit your access to financial products and ultimately takes the power of choice away from Connecticut consumers.

In the communication by the Connecticut government, it said that as long as we offer our products below a 36% cap on imposed fees and finance charges, we can continue to operate. But, as we’ve told them, we do not impose fees or finance charges–we give consumers choices.  And, frankly, APR's work for loans, but not products like EarnIn.

In fact, this requirement confuses consumers even more given that we do not charge interest and we do not impose mandatory fees or finance charges. In addition, many loan products contain hidden fees and late fees that can be charged outside of a 36% cap. If EarnIn were to operate the way Connecticut wants us to, you’d be stuck with other products that do not offer you the  kind of choice that earned wage access provides.  

EarnIn’s goal is to always provide products that add value to customers' lives. We are working to update our business model, so we can serve you in a manner that fits within the new law that the Department of Banking has imposed. However, the Department of Banking has set an arbitrary deadline that we are unable to currently meet.