Employers and PEOs can sign up to offer payroll advances for their employees, replacing employer-sponsored advances or the need to go to a payday loan store, according to the announcement.
Randy Humphrey, CEO of the Hampden Group, said in the announcement, “This service establishes a unilateral company policy for granting cash advances, eliminates the employer’s cash outlays to fund these loans, and also reduces the write-offs associated with uncollected payroll advances. He added, “Using the PrePay Cash Advance Web site to request a loan eliminates what can often be a stressful conversation between employee and employer and provides a safe and secure alternative to storefront payroll advance operations.”
Humphrey also said he expects the default rate on cash advances to be lower since the company will work directly with employers’ payroll processors, which will lower fees for the employer.
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