New York Credit Unions Push to Treat Wage-Advance Apps as Loans
Nearly 30 New York credit unions urged state lawmakers on May 28, 2026 to pass the Stop Taking Our Pay (STOP) Act, which would regulate earned-wage-access (EWA) apps as loans under the state's usury cap.
Key takeaways
- 29 credit unions across New York are backing the bill — S8939 (Sen. Samra Brouk, Rochester) and A9644 (Assemblymember Steven Raga, Queens).
- The STOP Act would classify EWA cash advances as loans subject to New York's usury cap (about 25% APR).
- It would count fees, subscriptions, and "tips" as finance charges, closing a common workaround.
- Backers say nearly $700 million has been drained from New Yorkers' paychecks since 2019.
What the bill would do
The STOP Act would define any wage or cash advance as a loan so that providers cannot sidestep New York's lending law. Supporters point to the state attorney general's finding that one common product carries an effective APR above 750%. "Credit unions were founded to combat usury. It is in our DNA," said Emma Smalley, chief executive of Good Neighbors Credit Union.
Where it fits
The push follows an April 2026 federal court ruling that one app's advances are payday loans. If enacted, New York would join Connecticut and Maryland in treating EWA as credit. Industry groups oppose the change, arguing EWA is not a loan and that capping fees could cut off a lower-cost alternative to overdraft or payday borrowing.
What it means for New York workers
If the bill passes, EWA apps operating in New York would face interest-rate limits and loan-style disclosures. For now the products remain widely available while the legislation is debated in Albany.