SB 1028

Under current law, the Department of Financial Institutions licenses and regulates providers of earned wage access (EWA) services. “Earned wage access service” is defined in part as the business of delivering to individuals residing in this state (consumers) access to their earned but unpaid income. “Earned but unpaid income” means salary, wages, or other compensation that has been earned by or accrued to the benefit of a consumer in exchange for the consumer’s services to an employer but that has not yet been paid to the consumer. “Proceeds” means a payment by a provider of EWA services to a consumer based on the consumer’s earned but unpaid income.

Current law imposes various requirements and restrictions on providers of EWA services. For example, a provider of EWA services must offer a consumer an option to obtain proceeds at no cost and must disclose to a consumer all fees associated with the EWA services. A provider of EWA services may not charge a late fee, deferral fee, interest, or other penalty for failure to repay outstanding proceeds.

This bill prohibits a provider of EWA services from charging a fee for delivery or expedited delivery of proceeds to a consumer exceeding $5 for an advance of proceeds of up to $75 or, if the advance is more than $75, exceeding $7.50. The $5 and $7.50 figures are adjusted for inflation at five-year intervals.

The bill also specifies that certain provisions of law—including portions of the Wisconsin Consumer Act and provisions relating to married persons’ credit transactions—do not apply to EWA services offered and provided by a licensed provider of EWA services.