H.R. 9330: Earned Wage Access Consumer Protection Act

This bill would create a federal set of rules for earned wage access services, which are products that let workers get money they have already earned before their normal payday.

What earned wage access providers would have to do

• If a provider offers early access to wages for a fee, it would also have to offer the same amount of wages for free.
• Before a consumer signs up, the provider would have to clearly explain:
  • any limits on how much or how often wages can be accessed,
  • all fees,
  • how to get the service without paying fees or tips, and
  • how tips are handled, if tips are accepted or suggested.
• Before each payout, the provider would have to disclose:
  • the consumer’s account number, if one is used,
  • the amount being sent,
  • any fees,
  • any tips selected by the consumer, and
  • when and how the provider expects to be repaid.
• If fees or tips are used, the consumer would need ongoing access to information showing how much they have already paid in the current pay period and year-to-date.
• If tips are solicited or accepted, the provider would have to say clearly that tips are voluntary, not required, and do not affect access to the service or the amount/frequency of wage advances.
• Providers would have to notify consumers of material changes to terms at least 30 days in advance, unless the consumer agrees to a shorter notice period.

Consumer protections

• Consumers using recurring services would have to be allowed to stop the service without paying a cancellation fee or penalty.
• Providers would have to have a process for handling complaints about unauthorized transfers, wrong amounts, missing payments, and unauthorized fees or tips.
• Providers generally could not collect the money by suing the consumer, using arbitration, sending the debt to a debt collector, or selling it to a debt buyer.
• An exception would apply if the consumer gave false information that they knew was false.
• If a provider takes payment from a bank account earlier than promised, or for a different amount than disclosed, and that causes an overdraft or NSF fee, the provider would have to reimburse the consumer for that fee.
• Providers could not share fees or tips with the consumer’s employer.
• Providers could not require payment by credit card unless the card was part of the service.
• Providers could not charge late fees, deferral fees, interest, or similar penalties for nonpayment of the advance, fees, or tips.
• Providers could not report this activity to consumer reporting agencies.
• Providers would be prohibited from discriminating based on race, color, religion, national origin, sex, marital status, age, pregnancy, childbirth, or related medical conditions.
• Providers would be treated as financial institutions for certain federal data privacy protections under the Gramm-Leach-Bliley Act.

How the law would work with state laws

• The bill would generally let state laws continue to apply unless they conflict with the federal rules.
• But states would not be allowed to treat compliant earned wage access services as credit, a loan, debt, or a similar product.
• States also could not substantially restrict compliant services just because they are earned wage access services.
• At the same time, states could still enforce general laws about fraud, deception, contracts, property, and taxes.

Other legal changes

• The Consumer Financial Protection Bureau would have to issue implementing rules within 180 days after enactment.
• The bill says that compliant earned wage access services, and any fees or tips connected to them, would not count as credit, loans, debt, interest, or finance charges under federal law.
• It also amends federal consumer finance laws so that earned wage access providers are not treated as creditors or lenders for those laws.

Relevant Companies

• ADP (ADP) — Payroll and workforce services companies that help process wages and may be involved in wage-access partnerships or data-sharing arrangements.
• INTU (INTU) — Payroll and financial software provider whose products could interact with wage-access features or employer payroll systems.
• MA (MA) — Payment network company that could be indirectly affected if wage-access products use card-based funding or related payment rails.
• V (V) — Payment network company that could be indirectly affected by changes in how earned wage access products move funds.