Colorado AG Challenges Earned Wage Access Provider Under State Lending Laws

On August 27, 2026, the Colorado Attorney General and the state's Uniform Consumer Credit Code Administrator announced a lawsuit against an earned wage access (EWA) provider, alleging that its direct-to-consumer cash advance product constitutes high-cost payday lending in violation of the Colorado Uniform Consumer Credit Code, the Deferred Deposit Loan Act, and the Colorado Consumer Protection Act. The complaint alleges that the provider characterized its advances as access to wages already earned rather than loans, while requiring consumers to authorize repayment from their bank accounts on or around payday. According to the state, the provider made more than 3.1 million advances totaling approximately $300 million to nearly 57,000 Colorado consumers between January 2023 and July 2025. The complaint alleges that tips and expedited-transfer fees resulted in an average APR of approximately 388%. Specifically, the state alleges that the provider: The state seeks injunctive relief, consumer restitution, disgorgement, civil penalties, attorneys' fees, and other relief. Putting It Into Practice: The lawsuit highlights the continuing divide over whether and under what circumstances EWA products should be regulated as credit. Several states have adopted EWA-specific frameworks that expressly exclude compliant products from traditional lending laws, as previously discussed (here and here). Colorado's complaint instead focuses on the substance of the product, including repayment practices, fees, tipping design, and the provider's ability to obtain repayment. EWA providers should review product structures, fee and tip practices, repayment mechanisms, disclosures, and state licensing requirements as states continue developing different approaches to EWA regulation.