Proactive approach to regulation creates space for responsible, emerging financial innovation
Even, the responsible earned wage access platform, announced that it has signed a memorandum of understanding (MOU) with the California Department of Financial Protection and Innovation (DFPI). The memorandum of understanding reflects the California agency’s proactive approach to oversight, which seeks to both protect consumers and foster innovation in financial services.
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Even’s responsible earned wage access platform is provided as a benefit by forward-thinking employers who want to improve the financial health of their employees and boost productivity and retention. It combines the convenience and flexibility of on-demand pay, which helps employees cover unexpected expenses and bills that might be due before payday, with a suite of proven tools for planning, budgeting, and saving.
As part of the memorandum of understanding with the DFPI, Even will continue to embrace policies that protect consumers and share data about the impact of Even’s on-demand pay platform on the individuals who use it. “There are so many different business models and approaches to on-demand pay,” said Even General Counsel Priya Pai. “We applaud the DFPI’s desire to understand how different models affect consumers so they can ensure people benefit from on-demand pay.”
The California Consumer Financial Protection Law (CCFPL), which went into effect Jan. 1, 2021, allows the DFPI to oversee previously unregulated financial products and services and enforce laws prohibiting financial service providers from using unlawful, unfair, deceptive, and abusive practices.
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