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View NCGA Bill Details2021
Senate Bill 467 (Public) Filed Thursday, April 1, 2021
Intro. by Johnson, Perry.

Status: Ref To Com On Rules and Operations of the Senate (Senate action) (Apr 5 2021)

Bill History:

S 467

Bill Summaries:

  • Summary date: Apr 1 2021 - View Summary

    Enacts new Article 26, Earned Wage Access Services Act, providing as follows. Requires registration as an earned wage access (EWA) service provider before providing earned wage access services. Sets the registration and renewal fee at $1,000; registration must be renewed every three years. Sets out information that must be included in the application for registration.

    Allows a registered EWA service provider to provide earned wage access services through a contract with an obligor or service provider to an obligor if: (1) the EWA service provider verifies the consumer's earned wages based on data relating directly to the consumer's earnings in that pay period; (2) the EWA service provider informs the consumer in writing that the consumer has a right to receive the full amount of the obligor's next payment of wages on the next date on which the obligor is scheduled to pay the consumer if the consumer chooses to not use earned wage access services; and (3) the consumer authorizes in writing that the amount of the payment of earned wages from the EWA service provider is to be deducted from the obligor's next payment of wages to the consumer. Prohibits an obligor from sharing information with an EWA service provider relating to the obligor's accrued and expected obligations to the consumer unless the obligor has entered into a contract for earned wage access services with the EWA service provider and the consumer has given advance consent to sharing the information. Allows an EWA service provider to charge a fee for earned wage access services if they are disclosed in writing to the consumer before the consumer chooses to use the services. Provides that if an EWA service provider complies with this Article, then the EWA service provider's earned wage access services are not lending activity and its payments pursuant to those services are not loans, and any fees for the EWA service provider's earned wage access services are not interest. Allows the Commissioner of Banks (Commissioner) to examine an EWA service provider, with the costs borne by the EWA service provider. Specifies when the reimbursement of these expenses can be waived. Allows the Commissioner to adopt rules to enforce the Article. Sets out actions that may be taken for violations of this Article, after notice and opportunity for hearing, to include (1) revoking, suspending, or refusing to renew an EWA service provider's registration; (2) ordering an EWA service provider to cease and desist from providing earned wage access services; and (3) assessing a civil penalty of not more than $10,000 for each willful violation. Failure to comply with the Article is an unfair or deceptive trade practice.

    Effective October 1, 2021.