On March 25, the governor of Utah signed into law HB 279, titled the “Earned Wage Access Services Act,” (the “Act”), which establishes regulations for earned wage access services that involve the payment of funds to consumers based on their earned but unpaid income. The Act mandates that providers of these services register with the state’s Division of Consumer Protection and renew their registration annually. It outlines specific requirements for providers, such as developing procedures for addressing consumer questions, disclosing fees and terms clearly, and offering at least one no-fee option for receiving funds.

Providers offering earned wage access services must adhere to several restrictions. They cannot compel or threaten consumers with civil lawsuits, calls, third-party collections, or debt sales. They also cannot threaten to report nonpayment to credit agencies or impose penalties like interest or late fees. Providers are prohibited from using a consumer’s credit report or score to determine eligibility for these services. Payments cannot be accepted via credit or charge cards, and funds cannot be conditioned on fees, tips or donations; also, consumers cannot be misled about the voluntary nature of these contributions. Additionally, providers cannot charge fees or penalties for nonrepayment of proceeds.

The Act exempts providers from certain financial regulations but requires compliance with privacy and information security laws. It also grants enforcement powers to the Division of Consumer Protection, including the ability to impose fines and bring legal actions. Penalties for violations are specified, and the Act provides for the denial, suspension or revocation of provider registrations under certain conditions. Finally, the Act clarifies that offering earned wage access services does not constitute a loan or credit service if the provider is not a creditor or lender. The Act is set to take effect on May 7.