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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7428 Reported in House (RH)]

<DOC>

                                                 Union Calendar No. 650
118th CONGRESS
  2d Session
                                H. R. 7428

                          [Report No. 118-787]

 To regulate the business of offering and providing earned wage access 
             services to consumers, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           February 20, 2024

  Mr. Steil (for himself and Mr. Hill) introduced the following bill; 
       which was referred to the Committee on Financial Services

                            December 3, 2024

      Additional sponsors: Mr. Donalds, Mr. Meuser, Mr. Barr, Mr. 
                     Luetkemeyer, and Mr. Sessions

                            December 3, 2024

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
    [For text of introduced bill, see copy of bill as introduced on 
                           February 20, 2024]

_______________________________________________________________________

                                 A BILL

 
 To regulate the business of offering and providing earned wage access 
             services to consumers, and for other purposes.

 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Earned Wage Access Consumer 
Protection Act''.

SEC. 2. EARNED WAGE ACCESS SERVICES.

    (a) Provision of Earned Wage Access Services.--
            (1) No-cost option required.--If an earned wage access 
        provider offers a consumer the option to receive earned wages 
        in exchange for a fee, such earned wage access provider shall 
        also offer such consumer the option to obtain the same amount 
        of earned wages at no cost to the consumer.
            (2) Required disclosures.--
                    (A) Disclosures preceding agreement.--Each earned 
                wage access provider shall disclose the following 
                before entering into an agreement with a consumer:
                            (i) Any limits on the amount of earned 
                        wages a customer may request from such 
                        provider, including--
                                    (I) any limits on the amount of 
                                earned wages a consumer may request 
                                from the provider each day;
                                    (II) any limits on the amount of 
                                earned wages a consumer may request 
                                from the provider each pay period; and
                                    (III) any limits on the amount of 
                                earned wages a consumer may request 
                                from the provider that are based on a 
                                determination by the provider of the 
                                ratio between the amount of earned 
                                wages requested by the consumer and the 
                                total wages earned by the consumer, and 
                                how such determination is made.
                            (ii) Any fees that such provider may apply, 
                        and the amount of such fees, including fees 
                        relating to expedited disbursement and 
                        subscriptions.
                            (iii) A description of how the consumer may 
                        obtain earned wages without paying a fee.
                            (iv) An overview of such provider's use of 
                        voluntary payments that describes--
                                    (I) whether such provider will 
                                accept voluntary payments from the 
                                consumer and in what amounts; and
                                    (II) whether such provider will 
                                suggest the consumer provide voluntary 
                                payments and in what amounts.
                    (B) Disclosures preceding approval of request.--
                Each earned wage access provider shall disclose the 
                following after approving any request from a consumer 
                for access to earned wages but before disbursing such 
                earned wages to such consumer:
                            (i) The account number such provider has 
                        assigned to the consumer, if applicable.
                            (ii) The amount of earned wages that will 
                        be provided to the consumer by such provider.
                            (iii) The total amount of any fees applied 
                        by such provider.
                            (iv) A list of any voluntary payments the 
                        consumer has agreed to provide.
                            (v) The amount that such provider intends 
                        to collect as repayment after disbursing the 
                        earned wages, the date on which such provider 
                        intends to collect such amount or a description 
                        of when such provider intends to collect such 
                        amount, and the manner in which such provider 
                        intends to collect such amount.
                    (C) Additional disclosures relating to voluntary 
                payments.--If an earned wage access provider solicits, 
                charges, or receives a voluntary payment from a 
                consumer, such provider--
                            (i) shall clearly and conspicuously 
                        disclose to the consumer, before the provider 
                        commences the transaction to which the 
                        voluntary payment is related, that such 
                        voluntary payment--
                                    (I) is voluntary;
                                    (II) is not a requirement for 
                                receiving earned wage access services; 
                                and
                                    (III) will not impact the frequency 
                                with which such earned wages are 
                                disbursed to such consumer; and
                            (ii) may not state that such voluntary 
                        payment will benefit any specific individual.
                    (D) Changes to terms.--Each earned wage access 
                provider shall notify each consumer with which such 
                earned wage access provider has entered an agreement to 
                offer earned wage access services of any material 
                changes to the terms and conditions of service used by 
                such provider not less than 30 days before such 
                material changes take effect.
                    (E) Regulations.--The Bureau shall, not less than 
                180 days after the date of the enactment of this 
                section, issue rules that govern the form and manner in 
                which the disclosures described in this section are 
                provided to consumers.
            (3) Cancellation of services.--If an earned wage access 
        provider makes earned wage access services available to a 
        consumer on a recurring basis, such earned wage access 
        provider--
                    (A) shall allow such consumer to discontinue such 
                services if such consumer provides reasonable notice to 
                such earned wage access provider that such consumer 
                desires to discontinue such services; and
                    (B) may not impose any financial penalty on such 
                consumer as a result of any discontinuation of 
                services.
            (4) Dispute process required.--Each earned wage access 
        provider shall develop and implement policies and procedures to 
        respond to questions and complaints from consumers relating 
        to--
                    (A) unauthorized disbursement of earned wages;
                    (B) disbursement of earned wages in an incorrect 
                amount;
                    (C) disbursed earned wages that were not received;
                    (D) repayment of disbursed earned wages that is not 
                received or was made in an incorrect amount; and
                    (E) voluntary payments that were not authorized or 
                were made in an incorrect amount.
            (5) Compelling repayment of disbursed wages.--
                    (A) In general.--An earned wage access provider may 
                not seek repayment of earned wages disbursed to a 
                consumer by such provider by--
                            (i) filing a civil suit;
                            (ii) initiating arbitration proceedings;
                            (iii) using the services of a debt 
                        collector (as such term is defined in section 
                        803 of the Fair Debt Collection Practices Act); 
                        or
                            (iv) selling the rights to the repayment of 
                        the disbursed earned wages to a third-party 
                        debt buyer.
                    (B) Exceptions.--Subparagraph (A) shall not apply 
                if an earned wage access provider is--
                            (i) seeking repayment of earned wages 
                        disbursed to a consumer based on information 
                        provided by the consumer that the consumer knew 
                        was false; or
                            (ii) pursuing the employer of the consumer 
                        to which such provider disbursed earned wages 
                        for breach of its contractual obligations to 
                        the provider.
            (6) Reimbursement required.--If an earned wage access 
        provider seeks repayment of disbursed earned wages, payment of 
        a fee, or a voluntary payment directly from a deposit account 
        of a consumer, on an incorrect date or in an incorrect amount, 
        and such attempt triggers an overdraft fee or non-sufficient 
        funds fee from the financial institution of the consumer, the 
        earned wage access provider shall reimburse such consumer for 
        such fee.
            (7) Additional limitations.--An earned wage access provider 
        may not--
                    (A) share any fees, tips, gratuities, or other 
                donations that were received from or charged to a 
                consumer for earned wage access services with the 
                employer of such consumer;
                    (B) accept payment of fees or voluntary payments 
                from a consumer though a credit card of the consumer, 
                unless such credit card is provided to the consumer as 
                a part of the earned wage access service; or
                    (C) require a consumer to pay a late fee, deferral 
                fee, interest, or any other penalty or charge as a 
                result of a failure by the consumer to pay a fee, tip, 
                gratuity, or other donation requested or applied by 
                such provider.
            (8) Disclosure to employer.--An earned wage access provider 
        may disclose, to an employer with which such provider has a 
        contract relating to earned wage access services, only such 
        information about earned wage access services used by consumers 
        who are employees of such employer as is necessary for such 
        earned wage access provider to recover disbursed wages.
            (9) Non-discrimination.--It shall be unlawful for any 
        earned wage access provider to discriminate against any 
        consumer on the basis of race, color, religion, national 
        origin, sex, pregnancy, marital status, or age when offering 
        earned wage access services.
    (b) Rulemaking.--The Bureau may issue such rules as the Bureau 
determines appropriate to carry out this section.
    (c) Definitions.--In this section:
            (1) Bureau.--The term ``Bureau'' means the Bureau of 
        Consumer Financial Protection.
            (2) Consumer.--The term ``consumer'' means a natural 
        person.
            (3) Earned wages.--
                    (A) In general.--The term ``earned wages'' means 
                salary, wages, compensation, or other income that a 
                consumer or an employer has represented and that an 
                earned wage access provider has reasonably determined 
                have been earned or have accrued to the benefit of the 
                consumer in exchange for the services provided by the 
                consumer, but that have not yet been paid to the 
                consumer by an employer.
                    (B) Services provided.--Services provided by the 
                consumer to the employer include any services 
                provided--
                            (i) on an hourly, project-based, piecework, 
                        or other basis; or
                            (ii) when the consumer is acting as a 
                        contractor of the employer.
            (4) Earned wage access services.--The term ``earned wage 
        access services'' means the delivery of earned wages to a 
        consumer based on--
                    (A) employment, income, or attendance data provided 
                by the employer of such consumer or a payroll service 
                vendor contracted by the employer of such consumer; or
                    (B) representations made by the consumer and the 
                reasonable determination of the earned proceeds of such 
                consumer by an earned wage access provider.
            (5) Earned wage access provider.--
                    (A) In general.--The term ``earned wage access 
                provider'' means a person who provides earned wage 
                access services to consumers.
                    (B) Exclusions.--The term ``earned wage access 
                provider'' does not include--
                            (i) a person who is not obligated to 
                        provide access to earned wages as part of an 
                        earned wage access service;
                            (ii) an employer that offers a portion of 
                        salary, wages, or compensation earned by a 
                        consumer directly to such consumer prior to a 
                        normally scheduled pay date;
                            (iii) a financial institution that permits 
                        a consumer to access amounts associated with an 
                        electronic fund transfer from the employer of 
                        the consumer for which the financial 
                        institution has received information but which 
                        has not yet settled; or
                            (iv) a payroll service vendor that 
                        facilitates payments to a consumer of wages 
                        earned by such consumer.
            (6) Payroll service vendor.--The term ``payroll service 
        vendor'' means a vendor contracted by an employer to facilitate 
        payment of employee wages in accordance with Federal, State, 
        and local law, including the Fair Labor Standards Act of 1938.
            (7) Voluntary payment.--The term ``voluntary payment'' 
        means any payment voluntarily made by a consumer to an earned 
        wage access provider when accessing earned wage services, 
        including a tip, gratuity, or donation.
    (d) Rule of Construction.--Voluntary payments and any fees paid by 
a consumer to an earned wage access provider may not be construed to be 
a ``finance charge'' as such term is defined in the Truth in Lending 
Act.

SEC. 3. CONFORMING AMENDMENTS.

    Section 103 of the Truth in Lending Act (15 U.S.C. 1602) is 
amended--
            (1) in subsection (f), by striking ``defer its payment'' 
        and inserting ``defer its payment, but does not include earned 
        wage access services as defined in the Earned Wage Access 
        Consumer Protection Act''; and
            (2) in subsection (g), by adding at the end the following: 
        ``The term creditor does not include earned wage access 
        providers as such term is defined in the Earned Wage Access 
        Consumer Protection Act.''.
                                                 Union Calendar No. 650

118th CONGRESS

  2d Session

                               H. R. 7428

                          [Report No. 118-787]

_______________________________________________________________________

                                 A BILL

 To regulate the business of offering and providing earned wage access 
             services to consumers, and for other purposes.

_______________________________________________________________________

                            December 3, 2024

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
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