Bill > HF2874

This bill establishes a comprehensive regulatory framework for earned wage access services in Minnesota, defining key terms and setting strict requirements for providers. The legislation defines "earned wage access services" as methods that allow consumers to access their earned but unpaid income before their regular payday, and requires providers to obtain a license from the state commissioner. Providers must develop consumer-friendly policies, offer at least one no-cost option for accessing funds, clearly disclose all fees and terms, and allow consumers to cancel services without penalty. The bill limits fees to a maximum of $7 per transaction, prohibits providers from sharing consumer fees with employers, and bars providers from using credit reports to determine eligibility or accepting payment via credit card. Providers are also forbidden from reporting consumers to credit agencies, pursuing legal action for unpaid amounts, or misrepresenting voluntary tips. The legislation explicitly states that these services are not considered loans, credit, or money transmission, and providers cannot charge late fees or interest. Providers must submit annual reports to the commissioner detailing their business operations and are subject to state oversight, with potential license suspension or revocation for non-compliance. The law aims to protect consumers while providing a regulated framework for innovative wage access services.

Business and Industry

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF2874&ssn=0&y=2025