Georgia Becomes Latest to Address Earned Wage Access Providers | Davis Wright Tremaine LLP jdsupra.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from jdsupra.com Daily Mail and Mail on Sunday newspapers.
March 1, 2021
The FinTech Industry Wants to Give Desperate Workers an Advance on Their Next Paycheck. It’s a Trap.
Employers love so-called earned-wage access apps. Their employees, not so much.
Illustration by An Chen
In a video filmed for his millions of Twitter followers, the celebrity preacher T.D. Jakes, posing in a double-breasted suit with a conspicuous gold watch on his wrist, asks his audience, “Do you realize 78 percent of Americans in this country live paycheck to paycheck?” Then he shares the good news: An app called Earnin can help. “It is possible to stretch your check,” he says, explaining that Earnin advances money to the user from their next paycheck, allowing them to cover unforeseen, urgent expenses. “Car back on the road. Refrigerator working,” he says. “Life goes on.”
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The California Department of Financial Protection and Innovations (DFPI) has issued an invitation for comments to seek input from stakeholders as the DFPI develops regulations to implement the California Consumer Financial Protection Law (CCFPL) that California enacted last year. Comments must be submitted by March 8, 2021.
The invitation for comments lists potential topics for rulemaking, but also notes that stakeholders are not limited by those areas and may comment on any potential rulemaking area. Some of the potential rulemaking topics listed by the DFPI include:
Exemptions – whether regulations are needed to clarify the CCFLP exemptions;
Dive Brief:
Last week, California ordered Burgerim to pay almost $4 million in fines to refund franchisee fees because the burger chain violated several of the state s franchise regulations, according to an order from California s Department of Financial Protection and Innovation. It was reported first by Restaurant Business. The company sold franchises to 1,550 operators who paid $57.7 million in fees from 2015 to July 2019.
The order states that Burgerim created a successor company, called the Burgerim Group, to commit fraud against and shield assets from franchisees. Burgerim Group received almost $400,000 in rebates from third-party vendors between August 2019 and August 2020. California has also ordered Burgerim to refund the franchisee fees within 30 days of an operator s request and to offer to rescind franchise agreements.
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(Reuters) - California’s financial regulatory agency underwent a rebrand this year after a new law not only gave it authority over the fintech industry and other previously unregulated businesses, but also a mandate to responsibly spur innovation in consumer finance.
Manuel Alvarez, the commissioner of California’s Department of Financial Protection and Innovation, is overseeing that shift. Alvarez has led the agency since he was appointed by the state’s Democratic Governor Gavin Newsom in 2019. Before that, he was the general counsel at fintech company Affirm Inc and an attorney at the U.S. Consumer Financial Protection Bureau and the California Department of Justice.