Branch Engages with California Department of Financial Protection and Innovation (DFPI) on Memorandum of Understanding
Share Article MINNEAPOLIS (PRWEB) January 28, 2021
Branch, the employer payments platform, announced it has proactively signed a memorandum of understanding (MOU) with the California Department of Financial Protection and Innovation (DFPI). Through the agreement, Branch will collaborate with the DFPI to balance consumer protection with financial innovation.
Branch is among five earned wage access (EWA) providers to enter this agreement, believed to be the first in the nation between earned wage access companies and a state regulator. Under the MOU, the companies have agreed to deliver quarterly reports intended to provide the department with a better understanding of the products and services being offered and their impact on California consumers.
The California Department of Financial Protection and Innovation (
DFPI) announced in its
January 2021 monthly bulletin that it will begin exercising its enhanced powers under the California Consumer Financial Protection Law (CCFPL) that came into effect January 1.
As we reported in
September and covered in a webinar in
December, the CCFPL, in addition to renaming the former California Department of Business Oversight (DBO) as the DFPI, expanded the scope of the renamed agency’s powers by (1) giving the DFPI the option of regulating nonbank small business lenders, many of which are fintech companies; (2) authorizing the DFPI to bring enforcement actions for unlawful, unfair, deceptive, or abusive acts or practices (UDAAPs) by any person offering or providing consumer financial products or services in the state; and (3) giving the DFPI rulemaking and enforcement authority relating to UDAAP by “covered persons,” which is defined broadly to include entities not subject to
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Though the January 1, 2021, effective date of the California Consumer Financial Protection Law (CCFPL) has now passed, financial institutions continue to work through the intricacies of.
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Every so often, the extent of state laws providing for the licensing of collection agencies needs to be re-examined. As every state, including two of the most prominent states, California and New York, historically had not licensed collection agencies,
1 the state licensing of collection agencies has not been given as much attention as has been given to the state licensing of other consumer finance activities. This changed in September 2020, when the California legislature, shortly before adjournment, enacted Senate Bill 908 to license debt collectors under a new law called the Debt Collection Licensing Act (the “DCLA”).