Committee hears competing views on earned-wage access bill; set to be held for amendment

The House Financial Institutions Committee heard testimony on House Bill 1125, which would create a licensing and oversight framework for earned-wage access (EWA) providers operating in Indiana. Proponents told the committee the bill offers consumer protections and regulatory certainty; advocates and some consumer groups urged tighter fee limits, mandatory APR disclosure and stronger data-sharing safeguards. The committee announced it will hold the bill for amendment and possible vote next week.

Representative (Chairman) Teschka opened the discussion by describing EWA as a modern re-creation of daily pay access: "This bill really just creates the licensing structure for those EWA providers. It also gives the Department of Financial Institutions some clear oversight over the product," he said. The bill, as drafted, bans late fees and interest, prohibits credit checks and credit reporting, requires a no-cost option and bars recourse for providers.

Consumer advocates raised several concerns. Erin Macy, director of the Indiana…