California to Begin Oversight of Earned Wage Access Companies

California’s new consumer finance watchdog will have the power to examine five of the largest U.S. earned wage access companies, setting the stage for a potential licensing regime in the state.

The California Department of Financial Protection and Innovation announced Wednesday that it had signed memorandums of understandingthat will allow access to the companies’ books and records. The move will allow the regulator to understand how the firms operate and spot potential red flags or violations of state and federal law.

“These first of their kind agreements reflect the type of balanced approach and oversight we strive to provide ...