Bill > SB01396

This bill establishes comprehensive regulations for earned but unpaid wage or salary income advances in Connecticut, creating new definitions and strict guidelines for providers of these financial services. The bill defines an earned but unpaid wage or salary income advance as a small loan advance to a Connecticut borrower for wages not yet paid, with a maximum amount of $750 per pay period. Providers must offer at least one no-cost option for advances and can only charge a maximum finance charge of $4 per advance or $30 per month. Key requirements include verifying the borrower's earned income, clearly disclosing all fees and terms, allowing borrowers to cancel services without penalty, and prohibiting providers from sharing finance charges with employers or using aggressive collection tactics. The bill also mandates that providers implement measures to prevent borrowers from obtaining multiple advances for the same pay period from different providers, protect borrowers from excessive fees, and provide transparent reporting of advance details. Providers are restricted from requesting repayment via credit card, reporting to credit agencies, or compelling repayment through lawsuits or third-party collection agencies. The regulations aim to protect workers by creating a more transparent and consumer-friendly framework for accessing earned wage advances.

Budget and Finance, Business and Industry

Banking Committee (J)

https://www.cga.ct.gov/asp/cgabillstatus/cgabillstatus.asp?selBillType=Bill&bill_num=SB01396&which_year=2025