On June 30, the House Financial Services Committee voted to advance H.R. 9330, the Earned Wage Access Consumer Protection Act. If enacted, the bill would establish a federal regulatory framework for earned wage access (EWA) services — defined as the delivery of earned wages to a consumer based on employment, income or attendance data, or on the consumer’s representations and the provider’s reasonable determination of earned wages. The bill requires that if a provider offers a consumer the option to receive earned wages in exchange for a fee, the provider must also offer the same amount at no cost to the consumer. Providers must make tiered disclosures covering access limits, fees, tips, and repayment expectations at the pre-agreement, pre-disbursement, and post-disbursement stages.

The bill prohibits providers from: (i) filing suit, initiating arbitration, or using debt collectors to compel payment for disbursed earned wages, fees, or tips (unless the consumer knowingly provided false information); (ii) charging late fees, deferral fees, interest, or other penalties for nonpayment; (iii) reporting EWA activity to consumer reporting agencies; or (iv) sharing fees or tips with a consumer’s employer. Providers must reimburse consumers for overdraft or NSF fees triggered by early or incorrect payment attempts. The bill also requires providers to allow consumers to cancel recurring EWA services without financial penalty and prohibits discrimination on the basis of race, color, religion, national origin, sex (including pregnancy, childbirth, or related medical conditions), marital status, or age.