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House committee hears competing views on regulating earned-wage access; bill held for amendments
Summary
The House Financial Institutions Committee heard two competing narratives on House Bill 1125: industry witnesses urged licensing and clarity for earned-wage access services, while consumer advocates asked for rate caps, APR disclosure and stronger data safeguards to prevent overextension.
The House Financial Institutions Committee heard more than two hours of testimony on House Bill 1125, a proposal to license and regulate earned-wage access (EWA) services that let workers access wages they have already earned before a scheduled payday.
Chairman Teschka introduced the bill as a narrowly tailored licensing framework that would require EWA providers to offer at least one no-cost option, bar credit checks and credit reporting, ban interest and late fees, and give the Department of Financial Institutions (DFI) supervisory authority over providers. "This bill really just creates the licensing structure for those EWA providers," Teschka said, adding that the bill includes transparency requirements and a free option for consumers.
Proponents: Representatives of major EWA providers and fintech trade groups testified in support. Ben LaRocco, senior director of government…
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