24 LC 55 0312S
The Senate Committee on Banking and Financial Institutions offered the following
substitute to HB 84:
A BILL TO BE ENTITLED
AN ACT
To amend Part 2 of Article 15 of Chapter 1 of Title 10 of the Official Code of Georgia1
Annotated, the "Fair Business Practices Act of 1975," so as to provide requirements for2
earned wage access services; to provide for fees that may be charged for such services; to3
provide for prohibitions; to provide for consumer protections; to provide that earned wage4
access payments are nonrecourse; to provide that earned wage access services shall not be5
considered lending activity or money transmission; to provide that permitted fees are not6
interest; to provide for definitions; to provide for applicability; to provide for related matters;7
to repeal conflicting laws; and for other purposes.8
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:9
SECTION 1.10
Part 2 of Article 15 of Chapter 1 of Title 10 of the Official Code of Georgia Annotated, the11
"Fair Business Practices Act of 1975," is amended by adding a new Code section to read as12
follows:13
"10-1-393.20.14
(a) As used in this Code section, the term:15
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(1) 'Consumer' means an individual who indicates to a provider that he or she resides in16
the State of Georgia. A provider may use the mailing address or state of residence17
provided by a consumer to determine the consumer's state of residence for purposes of18
this Code section.19
(2) 'Consumer directed wage access services' means the business of offering or providing20
earned wage access services directly to a consumer based on the consumer's21
representation and the provider's reasonable determination of the consumer's earned but22
unpaid income, which may include, but is not limited to, time and attendance data,23
geolocation data, access to obligor systems, payroll systems, and paycheck history.24
(3) 'Earned but unpaid income' means salary, wages, compensation, or other income that25
a consumer or an employer has represented, and that a provider has reasonably26
determined, has been earned by or accrued to the benefit of the consumer in exchange for27
the consumer's provision of services to the employer or on behalf of the employer,28
including on an hourly, project based, piecework, or other basis and including when the29
consumer is acting as an independent contractor of the employer, but has not, at the time30
of the payment of proceeds, been paid to the consumer by the employer.31
(4) 'Earned wage access services' means the business of providing consumer directed32
wage access services, employer integrated wage access services, or both.33
(5) 'Earned wage access services provider' or 'provider' means a person that is in the34
business of offering or providing earned wage access services to consumers.35
(6) 'Employer' means:36
(A) A person who employs a consumer; or37
(B) Any other person who is contractually obligated to pay a consumer earned but38
unpaid income in exchange for a consumer's provision of services to the employer or39
on behalf of the employer, including on an hourly, project based, piecework, or other40
basis and including where the consumer is acting as an independent contractor with41
respect to the employer. Such term does not mean a customer of an employer or any42
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other person whose obligation to make a payment of salary, wages, compensation, or43
other income to a consumer is not based on the provision of services by that consumer44
for or on behalf of such person.45
(7) 'Employer integrated wage access services' means the business of delivering to46
consumers earned but unpaid income.47
(8) 'Fee' means:48
(A) A fee imposed by a provider for delivery or expedited delivery of proceeds to a49
consumer;50
(B) A subscription or membership fee imposed by a provider for a bona fide group of51
services that includes earned wage access services;52
(C) A tip or gratuity paid by a consumer; provided, however, that any default tips or53
gratuities shall be set to $0.00; or54
(D) An amount of money paid by an employer to a provider on a consumer's behalf,55
which entitles the consumer to receive proceeds at reduced or no cost to the consumer.56
(9) 'Outstanding proceeds' means a payment of proceeds to a consumer by a provider that57
has not yet been repaid to such provider.58
(10) 'Person' means a business entity other than an individual.59
(b) An earned wage access services provider shall:60
(1) Develop and implement policies and procedures to respond to questions raised by61
consumers and address complaints from consumers;62
(2) Whenever it offers a consumer the option to receive proceeds for a fee, offer such63
consumer at least one reasonable option to obtain proceeds at no cost and clearly explain64
to the consumer how to choose such no-cost option;65
(3) Before entering into an agreement with a consumer for the provision of earned wage66
access services:67
(A) Inform the consumer of his or her rights under the agreement;68
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(B) Inform the consumer that the agreement is not intended to create a legal obligation69
for the consumer to repay advances; and70
(C) Fully and clearly disclose all fees or a schedule of fees associated with the earned71
wage access services;72
(4) Inform the consumer of the fact of any material changes to the terms and conditions73
of the earned wage access services before implementing those changes for such74
consumer;75
(5) Allow the consumer to cancel use of the provider's earned wage access services at76
any time, without incurring a cancellation fee imposed by the provider;77
(6) Provide proceeds to a consumer via any means mutually agreed upon by the78
consumer and the provider;79
(7) Comply with all local, state, and federal privacy and information security laws;80
(8) In any case in which such provider will seek repayment of outstanding earned wage81
access payments or payment of fees from a consumer, inform the consumer when the82
provider will make its first attempt to seek such repayment or payment; and83
(9) In any case in which such provider will seek repayment of outstanding proceeds or84
payment of fees in connection with the activities covered by this Code section from a85
consumer's depository institution account via electronic funds transfer:86
(A) Comply with the federal Electronic Funds Transfer Act , 15 U.S.C. Section 1693,87
et seq., and its implementing regulations; and88
(B) Reimburse the consumer for the full amount of any overdraft or insufficient funds89
fees imposed on a consumer by the consumer's depository institution that were caused90
by the provider attempting to seek payment of any outstanding proceeds or fees on a91
date before, or in an incorrect amount from, the date or amount disclosed to the92
consumer; provided, however, that a provider is not subject to the requirements in this93
subparagraph with respect to payments of outstanding proceeds or fees incurred by a94
consumer through fraudulent or other unlawful means.95
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(c) No earned wage access services provider shall:96
(1) Share with an employer a portion of any fees, tips, gratuities, or other donations that97
were received from or charged to a consumer for earned wage access services. Any98
payment from the employer to the earned wage access services provider set forth in an99
agreement between the employer and earned wage access services provider shall not be100
considered a violation of this paragraph;101
(2) Charge a consumer a fee in excess of $5.00 per transaction;102
(3) Charge a consumer a late fee, a deferral fee, interest, or any other penalty or charge103
for the consumer's failure to repay outstanding proceeds or fees;104
(4) Require a consumer's credit report or credit score issued by a consumer reporting105
agency to determine a consumer's eligibility for earned wage access services;106
(5) Accept repayment of outstanding proceeds or fees from a consumer via a credit card107
or charge card;108
(6) Report to a consumer credit reporting agency or a third-party debt collector any109
information about the consumer regarding the inability of the provider to be repaid110
outstanding proceeds or fees; or111
(7) Compel or attempt to compel payment by a consumer of any outstanding proceeds112
or fees to the provider through any of the following means:113
(A) A civil suit against the consumer;114
(B) Use of a third party to pursue collection from the consumer on the provider's115
behalf;116
(C) The sale of outstanding amounts to a third-party debt collector or debt buyer for117
collection from the consumer; or118
(D) Use of unsolicited outbound telephone calls.119
(d) No earned wage access services that comply with this Code section shall be considered120
lending activity or money transmission, nor shall earned wage access payments that comply121
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with this Code section be considered loans. No fees permitted under this Code section122
shall be considered interest.123
(e) Failure to comply with the provisions of this Code section shall be considered an unfair124
or deceptive act or practice which is unlawful and which shall be punishable by the125
provisions of this part."126
SECTION 2.127
This Act shall apply to agreements for earned wage access services that are entered into or128
renewed on or after July 1, 2024.129
SECTION 3.130
All laws and parts of laws in conflict with this Act are repealed.131
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