The Earned Wage Access Consumer Protection Act creates the first federal regulations for earned wage access services, which allow workers to receive portions of their paychecks before payday. The bill requires providers to offer at least one no-cost option, make clear disclosures about fees and terms, and prohibits them from suing workers to recover advanced wages or imposing late fees and credit reporting penalties. The law bars practices like charging overdraft fees when early payments cause account problems and requires dispute resolution processes for consumer complaints. The Consumer Financial Protection Bureau will oversee and enforce these protections, and the legislation clarifies that earned wage access services are not loans or credit products subject to traditional lending regulations. The bill exempts employers that offer early pay directly to their employees and financial institutions that simply process payroll transfers.
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