Consumer Protection for Earned Wage Access Services
This act introduces new rules for companies offering early access to earned but unpaid wages. It aims to protect consumers by requiring no-cost options, clear disclosures of fees and limits, and easier service cancellation and dispute resolution. This gives citizens more control over their finances and helps them avoid hidden costs.
Key points
Providers must offer a no-cost option for accessing earned wages if they charge fees for expedited access.
Clear disclosure of all fees, withdrawal limits, and voluntary payment (tip) policies is required before service agreement.
Consumers can easily cancel services without financial penalties.
Providers cannot sue consumers or use debt collectors to recover disbursed wages, unless the consumer provided false information.
Consumers will be reimbursed for overdraft or non-sufficient funds fees caused by incorrect collection attempts by the provider.
Prohibition of discrimination against consumers based on race, color, religion, national origin, sex, pregnancy, marital status, or age.
Expired
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