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  • Summary date: Apr 26 2023 - View Summary

    Creates new Article 26 (Earned Wage Access Services) in GS Chapter 53, regulating businesses that provide access to earned income or wages that have not yet been paid to the employee. Provides definitions for the Article. Requires all providers of earned wage access services to register with the Commissioner of Banks (Commissioner). Requires the Commissioner to adopt regulations regarding registration and applicable fees. 

    Establishes requirements on providers of earned wage access services, including the requirement that all payments be on a non-recourse basis, and that the provider must inform the consumer of all fees associated with the service. Prohibits providers from taking certain actions against consumers, including charging late fees, reporting failed repayments to credit reporting agencies and debt collectors, and disclosing information about the consumer to a third party except as necessary to provide services. 

    Requires annual reporting by providers to the Commissioner, and establishes requirements for the annual reports. Permits the Commissioner to examine providers as necessary to confirm compliance, and requires providers to reimburse the reasonable costs and expenses of an examination. 

    Makes all information obtained by the Commissioner under the Article confidential, but permits sharing of confidential information with other governmental agencies and the Conference of State Bank Supervisors pursuant to agreement. 

    Permits the Commissioner to adopt rules as necessary to enforce the Article. Allows an appeal from any rule or order issued by the Commissioner to the State Banking Commission. 

    Provides for penalties and enforcement for violations of the Article. Makes violations an unfair or deceptive trade practice. Establishes that a registered provider under the Article has consented to the jurisdiction of North Carolina courts and has appointed the Secretary of State as agent for accepting service of process for an action under the Article. Allows the Commissioner to serve a provider by mailing certified mail to the last known address on file with the Commissioner. 

    Effective October 1, 2024.