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Connecticut moves to regulate earned‑wage access apps: $4 per‑advance cap, $30 monthly cap, licensing and anti‑stacking rules
Summary
The House passed a Banking Committee bill to license earned‑wage access providers as small‑loan lenders, impose a $4 per‑advance cap and a $30 monthly cap on finance charges, require data reporting to the Department of Banking and prohibit certain collection practices; supporters called it the nation's strongest set of consumer protections for the product.
The Connecticut House on Wednesday approved a bipartisan package to regulate earned‑wage access (EWA) providers, the fintech apps that let employees obtain part of a forthcoming paycheck in advance. The measure licenses EWA providers under the state’s small‑loan framework, sets consumer safeguards and imposes limits intended to prevent high‑cost or predatory uses of the product.
Representative Mark Doucette, chair of the Banking Committee, described the bill as a negotiated compromise among providers, consumer advocates and regulators. The bill requires licensing, caps fees for EWA at $4 per advance with a $30 monthly cap, and includes…
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