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Committee hears bill to regulate earned-wage-access apps; advocates urge caps, data reporting
Summary
House Bill 1125 would create a licensing and oversight framework for earned-wage-access (EWA) providers in Indiana. Supporters—including major providers—say the bill protects workers and provides regulatory certainty; consumer advocates urged fee caps, APR disclosure and stronger data reporting to prevent repeat borrowing and harms.
Representative Tescha (presenting the bill to the committee) described House Bill 1125 as a regulatory framework for earned-wage-access (EWA) services, which let workers access wages they have already earned before payday. The bill would require licensing, ban interest and late fees, prohibit credit checks and negative credit reporting, require a free transfer option (typically ACH) and allow the Department of Financial Institutions oversight of providers.
Major EWA providers and fintech trade groups testified in favor. Ben LaRocco of EarnIn and Andrew Welch of DailyPay described how their platforms verify wages and provide low- or no-cost transfers; both said the products reduce overdraft, late fees and reliance on higher-cost credit options. Witnesses said many users access modest amounts (testimony cited an average DailyPay advance of about $150) and that a substantial share of app users never take an…
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