Re:Move to Pull Consumer Protection Rule Heightens Debate ov...
by SegFaultx64 on Thursday March 07, 2019 @10:54AM
(#19329021)
Yep, absolutely. However there are ways to bring that into "the system" and regulate and monitor it just like other payroll functions. There is no reason that payday advances couldn't be done without those negative externalities if they we setup and structured correctly, rather than just your boss slipping you cash.
Re:Move to Pull Consumer Protection Rule Heightens Debate ov...
by dragonwriter on Thursday March 07, 2019 @11:21AM
(#19329285)
> However there are ways to bring that into "the system" and regulate and monitor it just like other payroll functions.
Sure, but it's not free to the employer (aside from making cash flow timing less predictable, regulating and monitoring are not free) and the contribution to the bottom line is dubious (it may even be negative: the employees for whom such a benefit would be most attractive may not be the employees a business most wants), so the business case for doing it rather than leaving employees to existing credit mechanisms is weak.
OTOH, there seems an obvious social benefit to having either this or same-day pay (which is also not free compared to status quo alternatives) as a norm, so that's maybe a role for government rules (either mandates or incentives.)
No, it's really hard because systems (technology secondarily, primarily policy and administrative controls) are set up to prevent the discretion that practice relied on because it was a giant and frequently exploited opportunity for embezzlement, favoritism, and unlawful discrimination (including quid pro quo sexual harassment) by line and middle managers.
It's not just an incidentally unsupported function.