Consumer Advocates Seek Tighter Calif. Earned-Wage Access Rule

Consumer advocates are pushing California regulators to toughen proposed regulations on future paycheck-dependent cash advances and and student loans, bemoaning what they consider to be exorbitant fees that amount to abuse.

Despite the proposals, the firms’ fees and interest rates are still too high, and some of these emerging products would dodge the state’s oversight through exemptions, the National Consumer Law Center and the Center for Responsible Lending said in a May 17 comment letter to the state’s financial regulator.

The advocacy groups largely support the proposed regulations. But the proposal is still “too loose to sufficiently rein in ...