Today’s podcast, which repurposes a recent webinar, is the conclusion of a two-part examination of the CFPB’s use of a proposed interpretive rule, rather than a legislative rule, to expand regulatory requirements for earned wage access (EWA) products. Part One, which was released last week, focused on the CFPB’s use of an interpretive rule to expand regulatory requirements for buy-now, pay-later (BNPL) products.… Continue Reading
CFPB files and prosecutes yet another enforcement lawsuit using funds obtained in violation of the CFPB’s enabling statute (Dodd-Frank Act) and the Constitution
By Alan S. Kaplinsky on
The Introduction to the Complaint which was filed by the CFPB on May 17, 2024 against Solo Funding, Inc. in the United States District Court for the Central District of California – Western Division Los Angeles (Judge R. Gary Klausner) describes the CFPB’s claims as follows:
INTRODUCTION
- The Consumer Financial Protection Bureau (“Bureau”) brings this action under §§ 1031, 1036(a), 1054, and 1055 of the Consumer Financial Protection Act of 2010 (CFPA), 12 U.S.C.
Michael Guerrero Presents at ABA Consumer Financial Services Committee Meeting on CFPB Rulemaking and Non-Rulemaking Efforts During Biden Administration
By Alan S. Kaplinsky on
Posted in CFPB Rulemaking
On January 9th, Michael Guerrero, Partner in Ballard Spahr’s Consumer Financial Services Group, presented at a program titled “Has the CFPB Offered Simpler Rules of the Road? Successes and Challenges with the CFPB’s Rulemaking and Non-Rulemaking Efforts During the Biden Administration”.
Panelists discussed the CFPB’s rulemaking and non-rulemaking guidance after Director Rohit Chopra’s June 2022 blog post titled “Rethinking the Approach to Regulations” in which he shared the CFPB’s aspiration to more clearly communicate the CFPB’s regulatory expectations in simple and straight-forward terms.… Continue Reading
Earned Wage Access Products Are Not Loans, According to the AG of Montana
By John A. Kimble & Ballard CFS Group on
On December 22, 2023, the Attorney General of Montana released an opinion (the “Opinion”) concluding that certain earned wage access (EWA) products are not “consumer loans” or “deferred deposit loans” under Montana law and do not, therefore, require licensure by the Montana Division of Banking and Financial Institutions. The Opinion only applies to EWA products that are:
- fully non-recourse, meaning providers do not: have any legal or contractual right to repayment from consumers, engage in any debt collection activities, sell or assign any balances, or report any non-payment to a consumer reporting agency;
- not conditioned on payment of any mandatory interest, fee, or other compensation; and
- limited in amount to the consumer’s accrued income.
This week’s podcast episode: A close look at earned wage access (EWA) products, with special guest Molly Jones, Vice President for Government Affairs, PayActiv
By Barbara S. Mishkin on
Posted in Earned Wage Access, Podcasts
PayActiv, which as the first EWA provider began an EWA program about 13 years ago, partners with employers to offer their employees EWA. We first discuss what EWA is, the structure of the employer model used by PayActiv and other EWA providers, and how employers participate in and employees access their wages in the employer model. … Continue Reading
CA Dept. of Financial Protection and Innovation signs MOUs with five earned wage access companies
By Ballard CFS Group on
Since the California Consumer Financial Protection Law (CCFPL) became effective on January 1, the state’s Department of Financial Protection and Innovation (DFPI) has wasted no time in asserting its expanded jurisdiction over consumer financial services providers. (The DFPI is the new name given to the state’s Department of Business Oversight (DBO) by the CCFPL.)… Continue Reading