Rachel Strohm
748 days ago
Tulloch is one of a growing number of US workers turning their personal data over to private companies in exchange for paycheck advances, fueling an industry potentially worth up to $12 billion, by some estimates. In 2020, $9.5 billion in wages were accessed early, according to the research firm Aite-Novarica Group, up from $6.3 billion in 2019. These early payouts can be habit-forming; a 2021 report from the Financial Health Network found that more than 70 percent of pay advance users took out consecutive advances.
wired.com
By the time Dave Tulloch signed up for the paycheck advance app B9 late last year, he was far behind on his bills. A recruiter who financially supports his family, Tulloch had been laid off twice during the pandemic and was in need of fast money as soon as he found another job.