§ 39-5-840 — Compliance with requirements for providers.

A provider shall comply with all of the following requirements: (1) The provider shall develop and implement policies and procedures to respond to questions raised by consumers and address complaints from consumers in an expedient manner. (2) The provider shall offer to the consumer at least one reasonable option to obtain proceeds at no cost to the consumer and clearly explain how to elect that no-cost option. (3) Before providing a consumer with earned wage access services, the provider shall provide a consumer with a written paper or electronic document, which can be included as part of the contract to provide earned wage access services, and which meets all of the following requirements: (a) informs the consumer of the terms and conditions of the earned wage access services; (b) clearly and conspicuously describes how the consumer may obtain proceeds at no cost to that consumer; (c) provides a phone number or a website through which consumers can submit complaints about the provider's earned wage access services to the provider and the website and telephone number for the department; (d) is written in a font and using language intended to be easily understood by a layperson; (e) discloses any fees that may be directly imposed by the provider in connection with the provision of earned wage access services. (4) The provider must inform the consumer of the fact of any material changes to the terms and conditions of the earned wage access services before implementing those changes for that consumer, using a font and language intended to be easily understood by a layperson. (5) The provider shall provide proceeds to a consumer via any means mutually agreed upon by the consumer and provider. (6) The provider shall comply with all local, state, and federal privacy and information security laws. (7) If the provider solicits, charges, or receives a tip, gratuity, or other donation from a consumer, the provider shall: (a) clearly and conspicuously disclose to the consumer immediately prior to each transaction that a tip, gratuity, or other donation amount may be zero and is voluntary; (b) clearly and conspicuously disclose in its service contract with the consumer and elsewhere that tips, gratuities, or donations are voluntary and that the offering of earned wage access services, including the amount of proceeds a consumer is eligible to request and the frequency with which proceeds are provided to a consumer, is not contingent on whether the consumer pays any tip, gratuity, or other donation or on the size of the tip, gratuity, or other donation; (c) not mislead or deceive consumers about the voluntary nature of such tips, gratuities, or other donations; and (d) make no representations that tips, gratuities, or other donations will benefit any specific individuals. (8) In any case in which a provider will seek repayment of outstanding proceeds, fees, or other payments, in connection with the activities covered by this article, including voluntary tips, gratuities, or other donations from a consumer's account at a depository institution including via electronic transfer, the provider shall: (a) comply with applicable provisions of the federal Electronic Fund Transfer Act and its implementing regulations; (b) reimburse the consumer for the full amount of any overdraft or non-sufficient funds fees imposed on a consumer by the consumer's depository institution that were caused by the provider attempting to seek payment of any outstanding proceeds, fees, or other payments, in connection with the activities covered by this article, including voluntary tips, gratuities, or other donations, on a date before, or in an incorrect amount from, the date or amount disclosed to the consumer; and (c) not be subject to the requirements in subitem (b) with respect to payments of outstanding amounts or fees incurred by a consumer through fraudulent or other unlawful means. (9) In any case in which a provider will seek repayment of outstanding proceeds, fees, or other payments in connection with the activities covered by this article, including voluntary tips, gratuities, or other donations from a consumer via payroll deduction, the provider's terms and conditions shall inform the consumer that by using the provider's earned wage access services, the consumer consents to repayment from the consumer's employer or its payroll services provider. (10) A provider shall allow a consumer to discontinue receiving services at any time, without imposing a financial penalty on that consumer.

Legislative History

HISTORY: 2024 Act No. 190 (S.700), SECTION 1, eff November 21, 2024.