California will treat products that allow people to collect portions of their paychecks early as loans subject to the state’s lending law, although providers can opt to operate under a legal regime that doesn’t limit interest rates and fees.
Earned-wage access providers such as Dave Inc., EarnIn, and Payactiv Inc. will also be required to apply for a license or registration to operate in the country’s largest consumer finance market, subjecting them to regular examinations by the state’s financial regulator and data submission requirements, according to a rule announced Tuesday by California’s Department of Financial Protection and Innovation.
Although the ...
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