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Earned‑Wage Access Bill Divides Industry: Operators Warn Limits Could Harm Users; Payday Lenders Call for Database
Summary
House Bill 1393 would create licensing and a transaction database for earned wage access providers. Supporters from the payday‑lending and pawnbroker sectors said a real‑time database is needed to prevent overextension; large EWA providers cautioned the draft’s caps and APR requirements would over‑regulate a low‑fee product.
Representative Jason Doctor introduced House Bill 1393, saying the measure would establish a licensing and regulatory framework for earned‑wage access (EWA) providers and create a statewide transaction database to prevent consumer overextension.
Why it matters: EWA services let workers access wages they have already earned before payday. Supporters told the committee that online EWA products operate outside the state’s existing payday loan reporting system and that a transaction database and licensing are necessary to prevent consumers from taking multiple advances across platforms against the same paycheck.
Support and concerns: Bill Klinek (presenting on behalf of industry groups) told the committee HB1393 would “prevent consumers from overextending earned wage access advances” by requiring providers to submit every transaction to a statewide database. He cited California research showing heavy use in some cases and said a…
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