Bill Summary for H 725 (2021-2022)
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View NCGA Bill Details | 2021 |
AN ACT TO ENACT THE EARNED WAGE ACCESS SERVICES ACT.Intro. by Moffitt, Humphrey, K. Hall, Wray.
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Bill summary
Enacts new Article 26, Earned Wage Access Services Act, in GS Chapter 53, 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, with the requirements and procedures for registration applicable to renewals. Sets out information that must be included in the application for registration, which must be submitted through the Nationwide Multistate Licensing System and Registry (NMLS) along with the payment of actual costs of obtaining a credit report and criminal background check and processing fees required by the NMLS. Provides for approval of an applicant's registration upon the Commissioner of Banks (Commissioner) making four specified findings. Deems registration not assignable.
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 to examine an EWA service provider, with the costs borne by the EWA service provider, including upon receipt of a consumer complaint. Specifies when the reimbursement of these expenses can be waived. Provides for confidentiality of information received by the Commissioner pursuant to the Article and authorized sharing of information. Allows the Commissioner to adopt rules to enforce the Article, with aggrieved parties permitted to appeal to the State Banking Commission for review as specified. Sets out actions that may be taken for violations of this Article or rules adopted thereunder by EWA service providers, 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, remitted as specified. Provides for the effect of registration under the Article with regards to service of process. Failure to comply with the Article is an unfair or deceptive trade practice. Requires registration through NMLS and authorizes the Commissioner to participate in NMLS.
Effective May 1, 2022.