Bill > SB938

This bill establishes the Texas Earned Wage Access Services Act, which creates a comprehensive regulatory framework for companies providing earned wage access services (services that allow workers to access their earned but not-yet-paid wages before their regular payday). The bill defines key terms like "earned but unpaid income" and "earned wage access services provider" and sets specific requirements for these providers. Providers must give consumers clear, easy-to-understand disclosures about fees, contract terms, and their rights, including offering at least one no-cost option for accessing wages. The legislation prohibits providers from engaging in predatory practices such as charging late fees, using credit reports to determine eligibility, compelling payment through aggressive collection methods, or sharing consumer fees with employers. Providers are also barred from using credit cards for repayment and from reporting consumers to credit agencies if they cannot collect payment. The bill requires providers to have transparent fee structures, allow consumers to cancel services without penalty, and ensure that any tips or donations are truly voluntary. Additionally, the bill empowers the Texas finance commissioner to assess administrative penalties against providers who violate these regulations and allows for potential restitution to consumers. The new regulations will apply to earned wage access service contracts entered into on or after September 1, 2025.