summary
Introduced
01/08/2025
01/08/2025
In Committee
04/10/2025
04/10/2025
Crossed Over
02/11/2025
02/11/2025
Passed
04/16/2025
04/16/2025
Dead
Signed/Enacted/Adopted
05/06/2025
05/06/2025
Introduced Session
2025 Regular Session
Bill Summary
Earned wage access services. Provides that under certain circumstances, a lender may contract for and receive a nonrefundable prepaid finance charge of 3% (instead of 2%, under current law) of the loan amount on a loan that is secured by an interest in land and is not made under a revolving loan account. Provides that under certain circumstances, a lender may contract for and receive a nonrefundable prepaid finance charge of 3% (instead of 2%, under current law) of the line of credit on a loan that is secured by an interest in land and is made under a revolving loan account. Provides that: (1) if a joint agreement of merger is approved by the department of financial institutions, any credit union whose existence will terminate as a result of the merger shall submit the joint agreement to a vote of its shareholders as directed by the resolution of the board of directors; and (2) a majority of shareholders voting may approve the joint agreement. Establishes within the Indiana Code a new chapter, to be known as the Indiana Earned Wage Access Act (Act), governing the offering and provision of earned wage access services to Indiana consumers. Provides that the Act is to be administered by the division of consumer credit within the department of financial institutions (department). Sets forth provisions that address the following: (1) Definitions of terms. (2) Exemptions from the Act's requirements. (3) The department's supervisory authority under the Act. (4) The licensing of providers of earned wage access services (providers). (5) The acquisition of control of a licensee. (6) Reporting and record keeping requirements for licensees. (7) Duties of providers under the Act. (8) Prohibited acts by providers. (9) The department's enforcement authority under the Act. (10) Criminal liability for certain prohibited acts. (11) Statutory construction of the Act's provisions. Makes conforming changes to sections of the Indiana Code codified outside the Act.
AI Summary
This bill establishes the Indiana Earned Wage Access Act, creating a comprehensive regulatory framework for earned wage access services in the state. The legislation introduces licensing requirements for providers of these services, defining key terms such as "earned but unpaid income" and "consumer directed wage access services." Providers must obtain a license from the Department of Financial Institutions, submit to background checks, and maintain a surety bond ranging from $100,000 to $250,000. The bill mandates strict consumer protection provisions, including requiring providers to offer at least one no-cost option for accessing wages, clearly disclose all fees, and ensure voluntary nature of tips or donations. Providers are prohibited from sharing consumer data with employers, using credit scores to determine service eligibility, or charging late fees. The legislation also specifies that earned wage access services are not considered loans, credit, or money transmission. Providers must comply with various reporting and record-keeping requirements, and the department is granted broad administrative authority to enforce the act, including the ability to impose civil penalties up to $10,000 per violation. The bill additionally makes conforming amendments to several existing statutes, including those related to the Department of Financial Institutions' membership and licensing procedures.
Committee Categories
Business and Industry
Sponsors (6)
Jake Teshka (R)*,
Scott Baldwin (R),
Matt Lehman (R),
Kyle Miller (D),
Lonnie Randolph (D),
Kyle Walker (R),
Last Action
Public Law 222 (on 05/06/2025)
Official Document
bill text
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