Free subscription to the Capitol Journal keeps you current on legislative and regulatory news.
CT Senate Passes Sweeping Consumer Protection Bill The Connecticut Senate passed an expansive consumer protection bill ( SB 5 ). Among other things, the measure would require service providers such as...
Social Media Warning Label Legislation Catching on in States Although Congress hasn’t responded to former U.S. Surgeon General Vivek Murthy’s call last June to take up legislation requiring...
OR Lawmakers Pass Age Discrimination Bill Oregon’s legislature passed a bill ( HB 3187 ) that would prohibit an employer from requesting an applicant’s age, date of birth or date of graduation...
WI Assembly Passes Multiple Healthcare Bills Wisconsin’s Assembly passed multiple healthcare-related bills with broad bipartisan support. One ( AB 43 ) would allow pharmacists to prescribe birth...
A nightmare may be coming to life for social media companies in Minnesota. There, Democrats in the state Legislature have embraced a pioneering bill, SB 3197 , which seeks to levy the nation’s...
In recent years earned wage access apps, which allow workers to obtain access to their earnings before they receive their paychecks, have exploded in popularity. And providers including DailyPay, Dave, EarnIn and Payactiv, have been lobbying aggressively for state laws regulating the products as a new financial service that isn’t subject to interest rate limits or annual percentage rate disclosure requirements.
So far, they’ve been successful. In the past year and a half state lawmakers in Kansas, Missouri, Nevada, South Carolina and Wisconsin have all passed industry-friendly bills, which impose licensing and other requirements on providers.
Consumer groups, however, contend the products are just another form of payday loan. The only state that has taken that position is Connecticut, where the Department of Banking issued guidance defining earned wage access advances as small loans.
But that could change next year, as a result of new draft regulations from the federal Consumer Financial Protection Bureau, which determined that earned wage access apps are consumer loans subject to the Truth in Lending Act.
“The CFPB interpretive rule signals to state lawmakers and regulators that: We looked at this product, we analyzed how it operates, we analyzed it against legal standards, and we see it as a loan,” said Monica Burks, policy counsel for the Center for Responsible Lending. “It’s a signal to our state lawmakers that they should look at their own code and probably come to the same conclusion.” (PLURIBUS NEWS)
The Biden administration sided with banks suing Illinois over its first-in-the-nation law curtailing “interchange fees” on the tax and tip portion of debt and credit card transactions. In a legal brief, the federal Office of the Comptroller of the Currency, an independent bureau within the Treasury Department, wrote that the Illinois Interchange Fee Prohibition Act—passed as part of the state’s budget process earlier this year and scheduled to take effect next summer—is “bad policy” and conflicts with federal law. (CAPITOL NEWS ILLINOIS)
—Compiled by SNCJ Managing Editor KOREY CLARK
Visit our webpage to connect with a LexisNexis® State Net® representative and learn how the State Net legislative and regulatory tracking service can help you identify, track, analyze and report on relevant legislative and regulatory developments.
* The views expressed in externally authored materials linked or published on this site do not necessarily reflect the views of LexisNexis Legal & Professional.