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Bill > HB0279


UT HB0279

UT HB0279
Earned Wage Access Services Act


summary

Introduced
01/21/2025
In Committee
02/28/2025
Crossed Over
02/25/2025
Passed
03/13/2025
Dead
Signed/Enacted/Adopted
03/25/2025

Introduced Session

2025 General Session

Bill Summary

General Description: This bill enacts the Earned Wage Access Services Act.

AI Summary

This bill establishes the Earned Wage Access Services Act, which creates a regulatory framework for providers offering early access to earned wages. The bill defines key terms such as "earned wage access services" as payments to consumers based on their representation of earned but unpaid income, and establishes a registration process for providers through the Division of Consumer Protection. Providers must register annually, submit to background checks, and comply with strict consumer protection requirements, including clear fee disclosures, offering at least one no-fee fund transfer option, and allowing consumers to cancel services without penalty. The law prohibits providers from using aggressive collection tactics, charging interest or penalties for non-payment, using credit scores to determine eligibility, or conditioning services on tips or donations. Providers are exempt from certain financial regulations but must follow privacy and information security laws. The Division of Consumer Protection is empowered to enforce the act, with the ability to impose administrative fines up to $2,500 per violation, bring court actions, and potentially revoke a provider's registration for various infractions, such as fraudulent activities or failure to meet regulatory requirements. The bill aims to protect consumers while providing a regulated framework for innovative wage access services, with an effective date of May 7, 2025.

Committee Categories

Business and Industry

Sponsors (2)

Last Action

Governor Signed in Lieutenant Governor's office for filing (on 03/25/2025)

bill text


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