Mountainside, New Jersey (PressExposure) November 30, 2012 -- The Consumer Financial Protection Bureau's "Project Catalyst" team invited FlexWage Solutions CEO Frank Dombroski, one of a select group of entrepreneurs with innovations, to its kickoff event in Northern California last week. Project Catalyst, an initiative to support consumer-friendly innovation in the public marketplace, is the CFPB's answer to developing better policy decisions by gathering entrepreneurs, innovators, consumer trends, and emerging technology. "The results will be demonstrative improvement in the fiscal health of the underbanked," Dombroski said. "FlexWage was built on the belief that technology could more quickly transform the lives of the country's 50 million underbanked workers than legislation. Clearly the CFPB has embraced the same belief. We're honored to be part of the CFPB's Project Catalyst."
Dombroski demonstrated FlexWage'sWageBank employee-managed debit card tool to access earned wages in advance of payday. "Employees who have access to wages earned today can pay bills tomorrow without ever visiting a check-cashing store, payday lender, or other predatory enterprise," Dombroski said. "It changes lives, and that's the mutual goal of the CFPB and FlexWage." The WageBank tool is availableboth on the web and via tailored mobile applications for Apple's iPhones and Android's smartphones. Consumers without smartphones can choose to use the WageBank toll-free voice-response system.
According to the Pew Safe Small-Dollar Loans Research Project, 2012, payday loan borrowers spend approximately $7.4 billion annually at 20,000 storefronts and hundreds of websites. 69% of borrowers use payday loans to cover ordinary living expenses, not unexpected emergencies. 16% turn to to these predatory products in emergencies, keeping them indebted for five months a year. The average payday borrower makes eight loans a year, spending up to $895 for a $325 loan according to Pew.
More information on the CFPB's Project Catalyst is available at: http://www.consumerfinance.gov/projectcatalyst/
More information on the Pew's Small Dollar Loans Research is available at:http://www.pewtrusts.org/our_work_report_detail.aspx?id=85899406010
FlexWage Solutions is based in Mountainside, New Jersey. For more information on FlexWage Solutions, please visit FlexWage.com, on Facebook at Facebook.com/flexwage, or on Twitter @flexwage.