| Old | New | Differences | |
|---|---|---|---|
| 1 | 1 | ||
| 2 | 2 | ||
| 3 | 3 | EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. | |
| 4 | 4 | [Brackets] indicate matter deleted from existing law. | |
| 5 | - | Underlining indicates amendments to bill. | |
| 6 | - | Strike out indicates matter stricken from the bill by amendment or deleted from the law by | |
| 7 | - | amendment. | |
| 8 | 5 | *hb1294* | |
| 9 | 6 | ||
| 10 | 7 | HOUSE BILL 1294 | |
| 11 | 8 | I2, I3 5lr1545 | |
| 12 | 9 | ||
| 13 | - | By: Delegate Wilson | |
| 10 | + | By: Delegate Wilson | |
| 14 | 11 | Introduced and read first time: February 7, 2025 | |
| 15 | 12 | Assigned to: Economic Matters | |
| 16 | - | Committee Report: Favorable with amendments | |
| 17 | - | House action: Adopted | |
| 18 | - | Read second time: March 4, 2025 | |
| 19 | 13 | ||
| 20 | - | ||
| 14 | + | A BILL ENTITLED | |
| 21 | 15 | ||
| 22 | 16 | AN ACT concerning 1 | |
| 23 | 17 | ||
| 24 | 18 | Commercial Law – Credit Regulation – Earned Wage Access and Credit 2 | |
| 25 | 19 | Modernization 3 | |
| 26 | 20 | ||
| 27 | 21 | FOR the purpose of subjecting certain earned wage access products to the Maryland 4 | |
| 28 | 22 | Consumer Loan Law and other provisions that regulate entities that provide 5 | |
| 29 | 23 | consumer credit, revolving credit, and closed end credit; restricting the acceptance of 6 | |
| 30 | 24 | tips by certain lenders under certain circumstances; providing for the licensing or 7 | |
| 31 | 25 | registration of certain entities offering earned wage access products with certain 8 | |
| 32 | 26 | exemptions; regulating earned wage access service agreements; limiting the costs 9 | |
| 33 | 27 | and fees associated with obtaining an earned wage access product; and generally 10 | |
| 34 | 28 | relating to consumer lending and earned wage access. 11 | |
| 35 | 29 | ||
| 36 | 30 | BY repealing and reenacting, with amendments, 12 | |
| 37 | 31 | Article – Commercial Law 13 | |
| 38 | - | Section 12–101, | |
| 32 | + | Section 12–101, 12–301, 12–901, and 12–1001 14 | |
| 39 | 33 | Annotated Code of Maryland 15 | |
| 40 | 34 | (2013 Replacement Volume and 2024 Supplement) 16 | |
| 41 | 35 | ||
| 42 | 36 | BY adding to 17 | |
| 43 | 37 | Article – Commercial Law 18 | |
| 44 | - | Section 12–128, 12–318, | |
| 38 | + | Section 12–128, 12–318, 12–319, 12–927, and 12–1031; and 12–1501 through 19 | |
| 45 | 39 | 12–1507 to be under the new subtitle “Subtitle 15. Earned Wage Access” 20 | |
| 46 | 40 | Annotated Code of Maryland 21 | |
| 47 | 41 | (2013 Replacement Volume and 2024 Supplement) 22 | |
| 48 | - | 2 HOUSE BILL 1294 | |
| 49 | 42 | ||
| 43 | + | SECTION 1. BE IT ENACTED BY THE GE NERAL ASSEMBLY OF MARYLAND, 23 | |
| 44 | + | That the Laws of Maryland read as follows: 24 | |
| 50 | 45 | ||
| 51 | - | SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1 | |
| 52 | - | That the Laws of Maryland read as follows: 2 | |
| 46 | + | Article – Commercial Law 25 | |
| 53 | 47 | ||
| 54 | - | Article – Commercial Law 3 | |
| 55 | - | ||
| 56 | - | 12–101. 4 | |
| 57 | - | ||
| 58 | - | (a) In this subtitle the following words have the meanings indicated. 5 | |
| 59 | - | ||
| 60 | - | (b) “Borrower” means a person who borrows money under this subtitle. 6 | |
| 61 | - | ||
| 62 | - | (c) “Commercial loan” means a loan which is made: 7 | |
| 63 | - | ||
| 64 | - | (1) Solely to acquire or carry on a business or commercial enterprise; or 8 | |
| 65 | - | ||
| 66 | - | (2) To any business or commercial organization. 9 | |
| 67 | - | ||
| 68 | - | (d) “Effective rate of simple interest” means the yield to maturity rate of interest 10 | |
| 69 | - | received or to be received by a lender on the face amount of a loan, computed in accordance 11 | |
| 70 | - | with § 12–107 of this subtitle. 12 | |
| 71 | - | ||
| 72 | - | (e) “Interest” means, except as specifically provided in § 12–105 of this subtitle 13 | |
| 73 | - | OR § 12–1501 OF THIS TITLE, any compensation directly or indirectly imposed by a lender 14 | |
| 74 | - | for the extension of credit for the use or forbearance of money, including any loan fee, 15 | |
| 75 | - | origination fee, service and carrying charge, investigator’s fee, time–price differential, and 16 | |
| 76 | - | any amount payable as a discount or point or otherwise payable for services. 17 | |
| 77 | - | ||
| 78 | - | (f) “Lender” means a licensee or a person who makes a loan subject to this 18 | |
| 79 | - | subtitle. 19 | |
| 80 | - | ||
| 81 | - | (g) “Licensee” means a person that is required to be licensed to make loans subject 20 | |
| 82 | - | to this subtitle, regardless of whether the person is actually licensed. 21 | |
| 83 | - | ||
| 84 | - | (h) (1) “Loan” means a loan or an advance of money or credit subject to this 22 | |
| 85 | - | subtitle, regardless of whether the loan or advance of money or credit is or purports to be 23 | |
| 86 | - | made under this subtitle. 24 | |
| 87 | - | ||
| 88 | - | (2) “Loan” does not include: 25 | |
| 89 | - | ||
| 90 | - | (i) A loan or advance of money or credit subject to Subtitle 3 of this 26 | |
| 91 | - | title, unless a written election is made under § 12–101.1 of this subtitle; 27 | |
| 92 | - | ||
| 93 | - | (ii) A plan or loan for which a written election is made under Subtitle 28 | |
| 94 | - | 3, Subtitle 4, Subtitle 9, or Subtitle 10 of this title; or 29 | |
| 95 | - | ||
| 96 | - | (iii) An installment sale agreement as defined in § 12–601 of this 30 | |
| 97 | - | title. 31 HOUSE BILL 1294 3 | |
| 48 | + | 12–101. 26 2 HOUSE BILL 1294 | |
| 98 | 49 | ||
| 99 | 50 | ||
| 100 | 51 | ||
| 101 | - | [(h–1)] (I) “Mobile home” has the meaning stated in § 11–501 of the Financial 1 | |
| 102 | - | Institutions Article. 2 | |
| 52 | + | (a) In this subtitle the following words have the meanings indicated. 1 | |
| 103 | 53 | ||
| 104 | - | [(i)] (J) “Person” includes an individual, corporation, business trust, statutory 3 | |
| 105 | - | trust, estate, trust, partnership, association, two or more persons having a joint or common 4 | |
| 106 | - | interest, or any other legal or commercial entity. 5 | |
| 54 | + | (b) “Borrower” means a person who borrows money under this subtitle. 2 | |
| 107 | 55 | ||
| 108 | - | [(j)] (K) “Point” means a fee, premium, bonus, loan origination fee, service 6 | |
| 109 | - | charge, or any other charge equal to 1 percent of the principal amount of a loan which is 7 | |
| 110 | - | charged by the lender at or before the time the loan is made as additional compensation for 8 | |
| 111 | - | the loan. 9 | |
| 56 | + | (c) “Commercial loan” means a loan which is made: 3 | |
| 112 | 57 | ||
| 113 | - | [(k)] (L) “Simple interest” means interest charged on the principal amount 10 | |
| 114 | - | loaned to the borrower. 11 | |
| 58 | + | (1) Solely to acquire or carry on a business or commercial enterprise; or 4 | |
| 115 | 59 | ||
| 116 | - | [(l)] (M) “Stated rate of interest” means the annual rate of interest stated in 12 | |
| 117 | - | percentage which appears on the face of the bond, draft, mortgage, deed of trust, security 13 | |
| 118 | - | agreement, promissory note, or other instrument which evidences the indebtedness. 14 | |
| 60 | + | (2) To any business or commercial organization. 5 | |
| 119 | 61 | ||
| 120 | - | (N) (1) “TIP” MEANS A VOLUNTARY PA YMENT BY A CONSUMER TO A 15 | |
| 121 | - | LENDER OR THIRD PART Y WHO PROVIDES OR AR RANGES A LO AN: 16 | |
| 62 | + | (d) “Effective rate of simple interest” means the yield to maturity rate of interest 6 | |
| 63 | + | received or to be received by a lender on the face amount of a loan, computed in accordance 7 | |
| 64 | + | with § 12–107 of this subtitle. 8 | |
| 122 | 65 | ||
| 123 | - | (I) MADE AT THE TIME OF T HE TRANSACTION IN RE COGNITION 17 | |
| 124 | - | OF THE LENDER ’S OR THIRD PARTY ’S PROVISION OR ARRAN GEMENT OF THE LOAN ; 18 | |
| 66 | + | (e) “Interest” means, except as specifically provided in § 12–105 of this subtitle 9 | |
| 67 | + | OR § 12–1501 OF THIS TITLE, any compensation directly or indirectly imposed by a lender 10 | |
| 68 | + | for the extension of credit for the use or forbearance of money, including any loan fee, 11 | |
| 69 | + | origination fee, service and carrying charge, investigator’s fee, time–price differential, and 12 | |
| 70 | + | any amount payable as a discount or point or otherwise payable for services. 13 | |
| 125 | 71 | ||
| 126 | - | (II) MADE AT THE SOLE DISC RETION OF THE CONSUM ER; AND 19 | |
| 72 | + | (f) “Lender” means a licensee or a person who makes a loan subject to this 14 | |
| 73 | + | subtitle. 15 | |
| 127 | 74 | ||
| 128 | - | (III) THAT DOES NOT AFFECT THE WILLINGNESS OF T HE LENDER 20 | |
| 129 | - | OR THIRD PARTY TO PROVI DE OR ARRANGE THE LO AN OR ANY FUTURE LOA N OR 21 | |
| 130 | - | AFFECT THE TERMS OF ANY LOAN. 22 | |
| 75 | + | (g) “Licensee” means a person that is required to be licensed to make loans subject 16 | |
| 76 | + | to this subtitle, regardless of whether the person is actually licensed. 17 | |
| 131 | 77 | ||
| 132 | - | ( | |
| 133 | - | ||
| 134 | - | ||
| 78 | + | (h) (1) “Loan” means a loan or an advance of money or credit subject to this 18 | |
| 79 | + | subtitle, regardless of whether the loan or advance of money or credit is or purports to be 19 | |
| 80 | + | made under this subtitle. 20 | |
| 135 | 81 | ||
| 136 | - | [(m)] (O) “Usury” means the charging of interest by a lender in an amount which 26 | |
| 137 | - | is greater than that allowed by this subtitle. 27 | |
| 82 | + | (2) “Loan” does not include: 21 | |
| 138 | 83 | ||
| 139 | - | [(n)] (P) “Wages” means all remuneration paid to any employee for the 28 | |
| 140 | - | employee’s employment, including the cash value of all remuneration paid in any medium 29 | |
| 141 | - | other than cash. 30 | |
| 84 | + | (i) A loan or advance of money or credit subject to Subtitle 3 of this 22 | |
| 85 | + | title, unless a written election is made under § 12–101.1 of this subtitle; 23 | |
| 142 | 86 | ||
| 143 | - | 12–128. 31 | |
| 87 | + | (ii) A plan or loan for which a written election is made under Subtitle 24 | |
| 88 | + | 3, Subtitle 4, Subtitle 9, or Subtitle 10 of this title; or 25 | |
| 89 | + | ||
| 90 | + | (iii) An installment sale agreement as defined in § 12–601 of this 26 | |
| 91 | + | title. 27 | |
| 92 | + | ||
| 93 | + | [(h–1)] (I) “Mobile home” has the meaning stated in § 11–501 of the Financial 28 | |
| 94 | + | Institutions Article. 29 | |
| 95 | + | HOUSE BILL 1294 3 | |
| 96 | + | ||
| 97 | + | ||
| 98 | + | [(i)] (J) “Person” includes an individual, corporation, business trust, statutory 1 | |
| 99 | + | trust, estate, trust, partnership, association, two or more persons having a joint or common 2 | |
| 100 | + | interest, or any other legal or commercial entity. 3 | |
| 101 | + | ||
| 102 | + | [(j)] (K) “Point” means a fee, premium, bonus, loan origination fee, service 4 | |
| 103 | + | charge, or any other charge equal to 1 percent of the principal amount of a loan which is 5 | |
| 104 | + | charged by the lender at or before the time the loan is made as additional compensation for 6 | |
| 105 | + | the loan. 7 | |
| 106 | + | ||
| 107 | + | [(k)] (L) “Simple interest” means interest charged on the principal amount 8 | |
| 108 | + | loaned to the borrower. 9 | |
| 109 | + | ||
| 110 | + | [(l)] (M) “Stated rate of interest” means the annual rate of interest stated in 10 | |
| 111 | + | percentage which appears on the face of the bond, draft, mortgage, deed of trust, security 11 | |
| 112 | + | agreement, promissory note, or other instrument which evidences the indebtedness. 12 | |
| 113 | + | ||
| 114 | + | (N) (1) “TIP” MEANS A VOLUNTARY PA YMENT BY A CONSUMER TO A 13 | |
| 115 | + | LENDER OR THIRD PART Y WHO PROVIDES OR AR RANGES A LOAN : 14 | |
| 116 | + | ||
| 117 | + | (I) MADE AT THE TIME OF T HE TRANSACTION IN RE COGNITION 15 | |
| 118 | + | OF THE LENDER ’S OR THIRD PARTY ’S PROVISION OR ARRAN GEMENT OF THE LOAN ; 16 | |
| 119 | + | ||
| 120 | + | (II) MADE AT THE SOLE DISC RETION OF THE CONSUM ER; AND 17 | |
| 121 | + | ||
| 122 | + | (III) THAT DOES NOT AFFECT THE WILLINGNESS OF T HE LENDER 18 | |
| 123 | + | OR THIRD PARTY TO PR OVIDE OR ARRANGE THE LOAN OR ANY FUTURE L OAN OR 19 | |
| 124 | + | AFFECT THE TE RMS OF ANY LOAN . 20 | |
| 125 | + | ||
| 126 | + | (2) “TIP” DOES NOT INCLUDE ANY PAYMENT MADE BY A CONSUMER 21 | |
| 127 | + | FOR EXPEDITED PROCES SING OR DISBURSEMENT OR FOR A MEMBERSHIP , 22 | |
| 128 | + | REGISTRATION , OR SUBSCRIPTION FEE . 23 | |
| 129 | + | ||
| 130 | + | [(m)] (O) “Usury” means the charging of interest by a lender in an amount which 24 | |
| 131 | + | is greater than that allowed by this subtitle. 25 | |
| 132 | + | ||
| 133 | + | [(n)] (P) “Wages” means all remuneration paid to any employee for the 26 | |
| 134 | + | employee’s employment, including the cash value of all remuneration paid in any medium 27 | |
| 135 | + | other than cash. 28 | |
| 136 | + | ||
| 137 | + | 12–128. 29 | |
| 138 | + | ||
| 139 | + | (A) A LENDER WHO GIVES CONSUMERS AN O PTION TO PROVIDE THE 30 | |
| 140 | + | LENDER A TIP SHALL : 31 | |
| 144 | 141 | 4 HOUSE BILL 1294 | |
| 145 | 142 | ||
| 146 | 143 | ||
| 147 | - | ( | |
| 148 | - | ||
| 144 | + | (1) DISCLOSE TO THE CONSU MER TO WHOM THE TIP WILL BE 1 | |
| 145 | + | ALLOCATED; AND 2 | |
| 149 | 146 | ||
| 150 | - | (1) DISCLOSE TO THE CONSU MER TO WHOM THE TIP WILL BE 3 | |
| 151 | - | ALLOCATED; AND 4 | |
| 147 | + | (2) SET THE DEFAULT TIP AT Z ERO. 3 | |
| 152 | 148 | ||
| 153 | - | (2) SET THE DEFAULT TIP AT Z ERO. 5 | |
| 149 | + | (B) A LENDER MAY NOT DIREC TLY OR INDIRECTLY SU GGEST THAT 4 | |
| 150 | + | PROVIDING A TIP WILL INFLUENCE: 5 | |
| 154 | 151 | ||
| 155 | - | ( | |
| 156 | - | ||
| 152 | + | (1) THE LENDER ’S WILLINGNESS TO PRO VIDE A LOAN TO A 6 | |
| 153 | + | CONSUMER AT ANY TIME ; OR 7 | |
| 157 | 154 | ||
| 158 | - | ( | |
| 159 | - | ||
| 155 | + | (2) THE TERMS OF ANY LOAN OFFERED TO THE CONSU MER BY THAT 8 | |
| 156 | + | LENDER. 9 | |
| 160 | 157 | ||
| 161 | - | (2) THE TERMS OF ANY LOAN OFFERED TO THE CONSU MER BY THAT 10 | |
| 162 | - | LENDER. 11 | |
| 158 | + | (C) A LENDER WHO RECEIVES A TIP THAT WOULD OTH ERWISE CREATE A 10 | |
| 159 | + | RATE OF INTEREST ABO VE THAT ALLOWED UNDER THIS SUBTITLE MAY NOT BE 11 | |
| 160 | + | FOUND IN VIOLATION O F THIS SUBTITLE IF T HE LENDER RETURNS AL L OF THE TIP 12 | |
| 161 | + | OR THAT PORTION OF T HE TIP NECESSARY TO REDUCE THE RATE OF I NTEREST TO 13 | |
| 162 | + | AN AMOUNT ALLOWED UN DER THIS SUBTITLE WI THIN 30 CALENDAR DAYS AFTER 14 | |
| 163 | + | RECEIVING THE TIP. 15 | |
| 163 | 164 | ||
| 164 | - | (C) A LENDER WHO RECEIVES A TIP THAT WOULD OTHER WISE CREATE A 12 | |
| 165 | - | RATE OF INTEREST ABO VE THAT ALLOWED UNDE R THIS SUBTITLE MAY NOT BE 13 | |
| 166 | - | FOUND IN VIOLATION O F THIS SUBTITLE IF T HE LENDER RETURNS AL L OF THE TIP 14 | |
| 167 | - | OR THAT PORTION OF T HE TIP NECESSARY TO REDUCE THE RATE OF I NTEREST TO 15 | |
| 168 | - | AN AMOUNT A LLOWED UNDER THIS SU BTITLE WITHIN 30 CALENDAR DAYS AFTER 16 | |
| 169 | - | RECEIVING THE TIP . 17 | |
| 165 | + | (D) A LENDER SHALL PROMINE NTLY DISCLOSE THAT : 16 | |
| 170 | 166 | ||
| 171 | - | (D) A LENDER SHALL PROMINE NTLY DISCLOSE THAT : 18 | |
| 167 | + | (1) PROVIDING A TIP DOES NOT INFLUENCE THE LE NDER’S 17 | |
| 168 | + | WILLINGNESS TO PROVI DE A LOAN TO THE CON SUMER AT ANY TIME ; AND 18 | |
| 172 | 169 | ||
| 173 | - | ( | |
| 174 | - | ||
| 170 | + | (2) ANY TIP PAID BY THE CONSUMER DOES NOT INU RE TO THE DIRECT 19 | |
| 171 | + | BENEFIT OF ANY SPECIFIC EMPLOYEE OF THE LENDER OR ANY OT HER INDIVIDUAL . 20 | |
| 175 | 172 | ||
| 176 | - | (2) ANY TIP PAID BY THE CONSUMER DOES NOT INURE TO TH E DIRECT 21 | |
| 177 | - | BENEFIT OF ANY SPECI FIC EMPLOYEE OF THE LENDER OR ANY OTHER INDIVIDUAL. 22 | |
| 173 | + | 12–301. 21 | |
| 178 | 174 | ||
| 179 | - | ||
| 175 | + | (a) In this subtitle the following words have the meanings indicated. 22 | |
| 180 | 176 | ||
| 181 | - | ( | |
| 177 | + | (b) “Commissioner” means the Commissioner of Financial Regulation. 23 | |
| 182 | 178 | ||
| 183 | - | ( | |
| 179 | + | (C) “INTEREST” HAS THE MEANING STAT ED IN § 12–101 OF THIS TITLE. 24 | |
| 184 | 180 | ||
| 185 | - | (C) “INTEREST” HAS THE MEANING STAT ED IN § 12–101 OF THIS TITLE. 26 | |
| 181 | + | [(c)] (D) “Lender” means a licensee or a person who makes a loan subject to this 25 | |
| 182 | + | subtitle. 26 | |
| 186 | 183 | ||
| 187 | - | [(c)] (D) “Lender” means a licensee or a person who makes a loan subject to this 27 | |
| 188 | - | subtitle. 28 | |
| 184 | + | [(d)] (E) “Licensee” means a person who is required to be licensed under Title 27 | |
| 185 | + | 11, Subtitle 2 of the Financial Institutions Article, the Maryland Consumer Loan Law 28 | |
| 186 | + | – Licensing Provisions, regardless of whether the person is actually licensed. 29 | |
| 189 | 187 | HOUSE BILL 1294 5 | |
| 190 | 188 | ||
| 191 | 189 | ||
| 192 | - | [( | |
| 193 | - | ||
| 194 | - | ||
| 190 | + | [(e)] (F) (1) “Loan” means any loan or advance of money or credit subject to 1 | |
| 191 | + | this subtitle, regardless of whether the loan or advance of money or credit is or purports to 2 | |
| 192 | + | be made under this subtitle. 3 | |
| 195 | 193 | ||
| 196 | - | [(e)] (F) (1) “Loan” means any loan or advance of money or credit subject to 4 | |
| 197 | - | this subtitle, regardless of whether the loan or advance of money or credit is or purports to 5 | |
| 198 | - | be made under this subtitle. 6 | |
| 194 | + | (2) “Loan” does not include an installment sale agreement as defined in § 4 | |
| 195 | + | 12–601 of this title. 5 | |
| 199 | 196 | ||
| 200 | - | (2) “Loan” does not include an installment sale agreement as defined in § 7 | |
| 201 | - | 12–601 of this title. 8 | |
| 197 | + | [(f)] (G) “Person” includes an individual, corporation, business trust, statutory 6 | |
| 198 | + | trust, estate, trust, partnership, association, two or more persons having a joint or common 7 | |
| 199 | + | interest, or any other legal or commercial entity. 8 | |
| 202 | 200 | ||
| 203 | - | [(f)] (G) “Person” includes an individual, corporation, business trust, statutory 9 | |
| 204 | - | trust, estate, trust, partnership, association, two or more persons having a joint or common 10 | |
| 205 | - | interest, or any other legal or commercial entity. 11 | |
| 201 | + | (H) “TIP” HAS THE MEANING STAT ED IN § 12–101 OF THIS TITLE. 9 | |
| 206 | 202 | ||
| 207 | - | (H) “TIP” HAS THE MEANING STAT ED IN § 12–101 OF THIS TITLE. 12 | |
| 203 | + | [(g)] (I) “Wages” means all remuneration paid to any employee for the 10 | |
| 204 | + | employee’s employment, including the cash value of all remuneration paid in any medium 11 | |
| 205 | + | other than cash. 12 | |
| 208 | 206 | ||
| 209 | - | [(g)] (I) “Wages” means all remuneration paid to any employee for the 13 | |
| 210 | - | employee’s employment, including the cash value of all remuneration paid in any medium 14 | |
| 211 | - | other than cash. 15 | |
| 207 | + | 12–318. 13 | |
| 212 | 208 | ||
| 213 | - | 12–318. 16 | |
| 209 | + | (A) A LENDER WHO GIVES CON SUMERS AN OPTION TO PROVIDE THE 14 | |
| 210 | + | LENDER A TIP SHALL : 15 | |
| 214 | 211 | ||
| 215 | - | ( | |
| 216 | - | ||
| 212 | + | (1) DISCLOSE TO THE CONSU MER TO WHOM THE TIP WILL BE 16 | |
| 213 | + | ALLOCATED; AND 17 | |
| 217 | 214 | ||
| 218 | - | (1) DISCLOSE TO THE CONSU MER TO WHOM THE TIP WILL BE 19 | |
| 219 | - | ALLOCATED; AND 20 | |
| 215 | + | (2) SET THE DEFAULT TIP AT Z ERO. 18 | |
| 220 | 216 | ||
| 221 | - | (2) SET THE DEFAULT TIP AT Z ERO. 21 | |
| 217 | + | (B) A LENDER MAY NOT DIREC TLY OR INDIRECTLY SU GGEST THAT 19 | |
| 218 | + | PROVIDING A TIP WILL INFLUENCE: 20 | |
| 222 | 219 | ||
| 223 | - | (B) A LENDER MAY NOT DIREC TLY OR INDIRECTLY SU GGEST THAT 22 | |
| 224 | - | PROVIDING A TIP WILL INFLUENCE: 23 | |
| 220 | + | (1) THE LENDER ’S WILLINGNESS TO PRO VIDE A LOAN TO A 21 | |
| 221 | + | CONSUMER AT ANY TIME ; OR 22 | |
| 222 | + | ||
| 223 | + | (2) THE TERMS OF ANY LOAN OFFERED TO T HE CONSUMER BY THAT 23 | |
| 224 | + | LENDER. 24 | |
| 225 | + | ||
| 226 | + | (C) A LENDER WHO RECEIVES A TIP THAT WOULD OTH ERWISE CREATE A 25 | |
| 227 | + | RATE OF INTEREST ABO VE THAT ALLOWED UNDE R THIS SUBTITLE MAY NOT BE 26 | |
| 228 | + | FOUND IN VIOLATION O F THIS SUBTITLE IF T HE LENDER RETURNS AL L OF THE TIP 27 | |
| 229 | + | OR THAT PORTION OF T HE TIP NECESSARY TO RED UCE THE RATE OF INTE REST TO 28 | |
| 230 | + | AN AMOUNT ALLOWED UN DER THIS SUBTITLE WI THIN 30 CALENDAR DAYS AFTER 29 | |
| 231 | + | RECEIVING THE TIP . 30 | |
| 232 | + | ||
| 233 | + | (D) A LENDER SHALL PROMINE NTLY DISCLOSE THAT : 31 | |
| 234 | + | 6 HOUSE BILL 1294 | |
| 235 | + | ||
| 236 | + | ||
| 237 | + | (1) PROVIDING A TIP DOES NOT INFLUENCE THE LE NDER’S 1 | |
| 238 | + | WILLINGNESS TO PRO VIDE A LOAN TO THE C ONSUMER AT ANY TIME ; AND 2 | |
| 239 | + | ||
| 240 | + | (2) ANY TIP PAID BY THE CONSUMER DOES NOT INU RE TO THE DIRECT 3 | |
| 241 | + | BENEFIT OF ANY SPECI FIC EMPLOYEE OF THE LENDER OR ANY OTHER INDIVIDUAL. 4 | |
| 242 | + | ||
| 243 | + | 12–319. 5 | |
| 244 | + | ||
| 245 | + | NOTWITHSTANDING ANY O THER PROVISION OF TH IS TITLE, A LOAN SHALL BE 6 | |
| 246 | + | SUBJECT TO THIS SUBT ITLE, WHETHER OR NOT ELECT ED, IF THE LOAN IS 7 | |
| 247 | + | CONSUMER –DIRECTED EARNED WAGE ACCESS U NDER SUBTITLE 15 OF THIS TITLE. 8 | |
| 248 | + | ||
| 249 | + | 12–901. 9 | |
| 250 | + | ||
| 251 | + | (a) In this subtitle the following words have the meanings indicated. 10 | |
| 252 | + | ||
| 253 | + | (b) “Borrower” means a corporation, partnership, association, government or 11 | |
| 254 | + | governmental subdivision or agency, trust, individual, or other entity receiving a loan or 12 | |
| 255 | + | other extension of credit under this subtitle. 13 | |
| 256 | + | ||
| 257 | + | (c) “Commercial loan” and “extension of credit for a commercial purpose” mean 14 | |
| 258 | + | an extension of credit made: 15 | |
| 259 | + | ||
| 260 | + | (1) Solely to acquire an interest in or to carry on a business or commercial 16 | |
| 261 | + | enterprise; or 17 | |
| 262 | + | ||
| 263 | + | (2) To any business or commercial organization. 18 | |
| 264 | + | ||
| 265 | + | (d) “Consumer borrower” means an individual receiving a loan or other extension 19 | |
| 266 | + | of credit under this subtitle for personal, household, or family purposes or an individual 20 | |
| 267 | + | receiving a commercial loan or other extension of credit for any commercial purpose not in 21 | |
| 268 | + | excess of $75,000, secured by residential real property. 22 | |
| 269 | + | ||
| 270 | + | (e) “Credit device” means any card, plate, check, draft, identification code, or 23 | |
| 271 | + | other means of identification contemplated by the agreement governing the plan. 24 | |
| 272 | + | ||
| 273 | + | (f) (1) “Credit grantor” means any individual, corporation, business trust, 25 | |
| 274 | + | statutory trust, estate, trust, partnership, association, two or more persons having a joint 26 | |
| 275 | + | or common interest, or any other legal or commercial entity making a loan or other 27 | |
| 276 | + | extension of credit under this subtitle which is incorporated, chartered, or licensed 28 | |
| 277 | + | pursuant to State or federal law, the lending operations of which are subject to supervision, 29 | |
| 278 | + | examination, and regulation by a State or federal agency or which is licensed under Title 30 | |
| 279 | + | 12, Subtitle 4 of the Financial Institutions Article or is a retailer. 31 | |
| 280 | + | ||
| 281 | + | (2) “Credit grantor” includes: 32 | |
| 282 | + | HOUSE BILL 1294 7 | |
| 283 | + | ||
| 284 | + | ||
| 285 | + | (i) Any bank, trust company, depository institution, or savings bank 1 | |
| 286 | + | having a branch in this State; 2 | |
| 287 | + | ||
| 288 | + | (ii) Any subsidiary of a bank holding company, as defined in the 3 | |
| 289 | + | federal Bank Holding Company Act of 1956, as amended, which is domiciled, doing 4 | |
| 290 | + | business, and offering a revolving credit plan involving the issuance of credit devices in this 5 | |
| 291 | + | State; and 6 | |
| 292 | + | ||
| 293 | + | (iii) Any person who acquires or obtains the assignment of a revolving 7 | |
| 294 | + | credit plan made under this subtitle. 8 | |
| 295 | + | ||
| 296 | + | (G) “INTEREST” HAS THE MEANING STAT ED IN § 12–101 OF THIS TITLE. 9 | |
| 297 | + | ||
| 298 | + | [(g)] (H) (1) “Loan” means a cash advance to be paid to or for the account of 10 | |
| 299 | + | the borrower. 11 | |
| 300 | + | ||
| 301 | + | (2) “Loan” includes an advance made in accordance with the terms of a 12 | |
| 302 | + | shared appreciation agreement. 13 | |
| 303 | + | ||
| 304 | + | [(h)] (I) “Mobile home” has the meaning stated in § 11–501 of the Financial 14 | |
| 305 | + | Institutions Article. 15 | |
| 306 | + | ||
| 307 | + | [(i)] (J) “Nonconsumer borrower” means any borrower other than a consumer 16 | |
| 308 | + | borrower. 17 | |
| 309 | + | ||
| 310 | + | [(j)] (K) (1) “Outstanding unpaid indebtedness” means on any day the total 18 | |
| 311 | + | amount of purchases and loans charged to the borrower’s account under the plan which is 19 | |
| 312 | + | outstanding and unpaid at the end of the day, after adding the aggregate amount of any 20 | |
| 313 | + | new purchases and loans charged to the account that day and deducting the aggregate 21 | |
| 314 | + | amount of any payments and credits applied to the account that day. 22 | |
| 315 | + | ||
| 316 | + | (2) If the agreement governing the plan permits, “outstanding unpaid 23 | |
| 317 | + | indebtedness” may include the amount of any interest, finance charges, and additional 24 | |
| 318 | + | charges, including late or delinquency charges, that have accrued in the account and are 25 | |
| 319 | + | unpaid at the end of the day. 26 | |
| 320 | + | ||
| 321 | + | [(k)] (L) “Purchase” means an extension of credit for a purchase of real or 27 | |
| 322 | + | personal, tangible or intangible property, or an extension of credit for services, licenses, 28 | |
| 323 | + | taxes, official fees, fines, private or governmental obligations, or any other thing of value, 29 | |
| 324 | + | including a charitable contribution. 30 | |
| 325 | + | ||
| 326 | + | [(l)] (M) “Residential real property” means owner–occupied real property having 31 | |
| 327 | + | a dwelling on it designated principally as a residence with accommodations for not more 32 | |
| 328 | + | than four families. 33 | |
| 329 | + | 8 HOUSE BILL 1294 | |
| 330 | + | ||
| 331 | + | ||
| 332 | + | [(m)] (N) “Revolving credit plan” or “plan” means a plan that contemplates the 1 | |
| 333 | + | extension of credit under an account governed by an agreement between a credit grantor 2 | |
| 334 | + | and a borrower under which: 3 | |
| 335 | + | ||
| 336 | + | (1) The credit grantor permits the borrower and, if the agreement 4 | |
| 337 | + | governing the plan permits, persons acting on behalf of or with authorization from the 5 | |
| 338 | + | borrower to make purchases or obtain loans from time to time; 6 | |
| 339 | + | ||
| 340 | + | (2) The amounts of purchases and loans are charged to the borrower’s 7 | |
| 341 | + | account; 8 | |
| 342 | + | ||
| 343 | + | (3) The borrower is required to pay the credit grantor the amounts of all 9 | |
| 344 | + | purchases and loans charged to the borrower’s account under the plan but has the privilege 10 | |
| 345 | + | of paying amounts due from time to time as agreed; and 11 | |
| 346 | + | ||
| 347 | + | (4) Interest or finance charges may be charged and collected by the credit 12 | |
| 348 | + | grantor from time to time on the amounts due under the plan. 13 | |
| 349 | + | ||
| 350 | + | [(n)] (O) “Shared appreciation agreement” has the meaning stated in § 11–501 14 | |
| 351 | + | of the Financial Institutions Article. 15 | |
| 352 | + | ||
| 353 | + | (P) “TIP” HAS THE MEANING STAT ED IN § 12–101 OF THIS TITLE. 16 | |
| 354 | + | ||
| 355 | + | 12–927. 17 | |
| 356 | + | ||
| 357 | + | (A) A LENDER WHO GIVES CON SUMERS AN OPTION TO PROVIDE THE 18 | |
| 358 | + | LENDER A TIP SHALL : 19 | |
| 359 | + | ||
| 360 | + | (1) DISCLOSE TO T HE CONSUMER TO WHOM THE TIP WILL BE 20 | |
| 361 | + | ALLOCATED; AND 21 | |
| 362 | + | ||
| 363 | + | (2) SET THE DEFAULT TIP AT Z ERO. 22 | |
| 364 | + | ||
| 365 | + | (B) A LENDER MAY NOT SUGGE ST THAT PROVIDING A TIP WILL INFLUENCE : 23 | |
| 225 | 366 | ||
| 226 | 367 | (1) THE LENDER ’S WILLINGNESS TO PRO VIDE A LOAN TO A 24 | |
| 227 | 368 | CONSUMER AT ANY TIME ; OR 25 | |
| 228 | 369 | ||
| 229 | - | (2) THE TERMS OF | |
| 230 | - | ||
| 370 | + | (2) THE TERMS OF A NY EARNED WAGE ACCES S OFFERED TO THE 26 | |
| 371 | + | CONSUMER BY THAT LEN DER. 27 | |
| 231 | 372 | ||
| 232 | 373 | (C) A LENDER WHO RECEIVES A TIP THAT WOULD OTH ERWISE CREATE A 28 | |
| 233 | 374 | RATE OF INTEREST ABO VE THAT ALLOWED UNDE R THIS SUBTITLE MAY NOT BE 29 | |
| 234 | 375 | FOUND IN VIOLATION O F THIS SUBTITLE IF T HE LENDER RETURNS AL L OF THE TIP 30 | |
| 235 | - | OR THAT PORTION OF T HE TIP NECESSARY TO REDUCE THE RATE OF I NTEREST TO 31 | |
| 376 | + | OR THAT PORTION OF T HE TIP NECESSARY TO REDUCE THE RATE OF I NTEREST TO 31 HOUSE BILL 1294 9 | |
| 236 | 377 | ||
| 237 | 378 | ||
| 238 | 379 | AN AMOUNT ALLOWED UN DER THIS SUBTITLE WI THIN 30 CALENDAR DAYS AFTER 1 | |
| 239 | 380 | RECEIVING THE TIP . 2 | |
| 240 | 381 | ||
| 241 | 382 | (D) A LENDER SHALL PROMINE NTLY DISCLOSE THAT : 3 | |
| 242 | 383 | ||
| 243 | 384 | (1) PROVIDING A TIP DOES NOT INFLUENC E THE LENDER ’S 4 | |
| 244 | 385 | WILLINGNESS TO PROVI DE A LOAN TO THE CON SUMER AT ANY TIME ; AND 5 | |
| 245 | 386 | ||
| 246 | 387 | (2) ANY TIP PAID BY THE CONSUMER DOES NOT INU RE TO THE DIRECT 6 | |
| 247 | 388 | BENEFIT OF ANY SPECI FIC EMPLOYEE OF THE LENDER OR ANY OTHER INDIVIDUAL. 7 | |
| 248 | 389 | ||
| 249 | - | 12– | |
| 390 | + | 12–1001. 8 | |
| 250 | 391 | ||
| 251 | - | NOTWITHSTANDING ANY O THER PROVISION OF TH IS TITLE, A LOAN SHALL BE 9 | |
| 252 | - | SUBJECT TO THIS SUBT ITLE, WHETHER OR NOT ELECT ED, IF THE LOAN IS 10 | |
| 253 | - | CONSUMER –DIRECTED EARNED WAGE ACCESS UNDER SUBTITLE 15 OF THIS TITLE. 11 | |
| 392 | + | (a) In this subtitle the following words have the meanings indicated. 9 | |
| 254 | 393 | ||
| 255 | - | 12–901. 12 | |
| 394 | + | (b) (1) “Balloon payment” means any scheduled payment on an installment 10 | |
| 395 | + | loan that is more than 2 times the average of all other payments scheduled to repay the 11 | |
| 396 | + | installment loan. 12 | |
| 256 | 397 | ||
| 257 | - | ( | |
| 398 | + | (2) “Balloon payment” does not include a down payment. 13 | |
| 258 | 399 | ||
| 259 | - | ( | |
| 400 | + | (c) “Borrower” means a corporation, partnership, association, government, or 14 | |
| 260 | 401 | governmental subdivision or agency, trust, individual, or other entity receiving a loan or 15 | |
| 261 | 402 | other extension of credit under this subtitle. 16 | |
| 262 | 403 | ||
| 263 | - | (c) “Commercial loan” and “extension of credit for a commercial purpose” mean 17 | |
| 264 | - | an extension of credit made: 18 | |
| 404 | + | (d) “Closed end credit” means the extension of credit by a credit grantor to a 17 | |
| 405 | + | borrower under an arrangement or agreement which is not a revolving credit plan as 18 | |
| 406 | + | defined in Subtitle 9 of this title. 19 | |
| 265 | 407 | ||
| 266 | - | ( | |
| 267 | - | ||
| 408 | + | (e) “Commercial loan” and “extension of credit for a commercial purpose” mean 20 | |
| 409 | + | an extension of credit made: 21 | |
| 268 | 410 | ||
| 269 | - | (2) To any business or commercial organization. 21 | |
| 411 | + | (1) Solely to acquire an interest in or to carry on a business or commercial 22 | |
| 412 | + | enterprise; or 23 | |
| 270 | 413 | ||
| 271 | - | (d) “Consumer borrower” means an individual receiving a loan or other extension 22 | |
| 272 | - | of credit under this subtitle for personal, household, or family purposes or an individual 23 | |
| 273 | - | receiving a commercial loan or other extension of credit for any commercial purpose not in 24 | |
| 274 | - | excess of $75,000, secured by residential real property. 25 | |
| 414 | + | (2) To any business or commercial organization. 24 | |
| 275 | 415 | ||
| 276 | - | (e) “Credit device” means any card, plate, check, draft, identification code, or 26 | |
| 277 | - | other means of identification contemplated by the agreement governing the plan. 27 | |
| 416 | + | (f) “Consumer borrower” means an individual receiving a loan or other extension 25 | |
| 417 | + | of credit under this subtitle for personal, household, or family purposes or an individual 26 | |
| 418 | + | receiving a commercial loan or other extension of credit for any commercial purpose not in 27 | |
| 419 | + | excess of $75,000, secured by residential real property. 28 | |
| 278 | 420 | ||
| 279 | - | (f) (1) “Credit grantor” means any individual, corporation, business trust, 28 | |
| 280 | - | statutory trust, estate, trust, partnership, association, two or more persons having a joint 29 | |
| 281 | - | or common interest, or any other legal or commercial entity making a loan or other 30 | |
| 282 | - | extension of credit under this subtitle which is incorporated, chartered, or licensed 31 | |
| 283 | - | pursuant to State or federal law, the lending operations of which are subject to supervision, 32 HOUSE BILL 1294 7 | |
| 421 | + | (g) (1) “Credit grantor” means any individual, corporation, business trust, 29 | |
| 422 | + | statutory trust, estate, trust, partnership, association, two or more persons having a joint 30 | |
| 423 | + | or common interest, or any other legal or commercial entity making a loan or other 31 | |
| 424 | + | extension of credit under this subtitle which is incorporated, chartered, or licensed 32 10 HOUSE BILL 1294 | |
| 284 | 425 | ||
| 285 | 426 | ||
| 286 | - | examination, and regulation by a State or federal agency or which is licensed under Title 1 | |
| 287 | - | 12, Subtitle 4 of the Financial Institutions Article or is a retailer. 2 | |
| 427 | + | pursuant to State or federal law, the lending operations of which are subject to supervision, 1 | |
| 428 | + | examination, and regulation by a State or federal agency or which is licensed under Title 2 | |
| 429 | + | 12, Subtitle 4 of the Financial Institutions Article or is a retailer. 3 | |
| 288 | 430 | ||
| 289 | - | (2) “Credit grantor” includes: | |
| 431 | + | (2) “Credit grantor” includes: 4 | |
| 290 | 432 | ||
| 291 | - | (i) Any bank, trust company, depository institution, or savings bank | |
| 292 | - | having a branch in this State; | |
| 433 | + | (i) Any bank, trust company, depository institution, or savings bank 5 | |
| 434 | + | having a branch in this State; 6 | |
| 293 | 435 | ||
| 294 | - | (ii) | |
| 295 | - | ||
| 296 | - | ||
| 297 | - | ||
| 436 | + | (ii) A person not required to be licensed under this subtitle, who is 7 | |
| 437 | + | exempt from the licensing provisions of Title 11, Subtitle 5 of the Financial Institutions 8 | |
| 438 | + | Article, who makes a loan or extension of credit under this subtitle secured by a secondary 9 | |
| 439 | + | mortgage on residential real property; and 10 | |
| 298 | 440 | ||
| 299 | - | (iii) Any person who acquires or obtains the assignment of | |
| 300 | - | credit | |
| 441 | + | (iii) Any person who acquires or obtains the assignment of an 11 | |
| 442 | + | agreement for an extension of credit made under this subtitle. 12 | |
| 301 | 443 | ||
| 302 | - | (G) “INTEREST” HAS THE MEANING STAT ED IN § 12–101 OF THIS TITLE. 12 | |
| 444 | + | (h) “Debt cancellation agreement” means an agreement between a credit grantor 13 | |
| 445 | + | and a borrower which provides for cancellation of the remaining loan balance in the event 14 | |
| 446 | + | of theft or total destruction of the collateral for the loan minus the proceeds of any insurance 15 | |
| 447 | + | maintained on the collateral for the loan or, if the borrower does not have insurance, the 16 | |
| 448 | + | actual cash value of the collateral at the time of loss, determined as provided in the 17 | |
| 449 | + | agreement. 18 | |
| 303 | 450 | ||
| 304 | - | ||
| 305 | - | ||
| 451 | + | (i) “Installment loan” means a loan repayable in scheduled periodic payments of 19 | |
| 452 | + | principal and interest. 20 | |
| 306 | 453 | ||
| 307 | - | (2) “Loan” includes an advance made in accordance with the terms of a 15 | |
| 308 | - | shared appreciation agreement. 16 | |
| 454 | + | (J) “INTEREST” HAS THE MEANING STAT ED IN § 12–101 OF THIS TITLE. 21 | |
| 309 | 455 | ||
| 310 | - | [(h)] (I) “Mobile home” has the meaning stated in § 11–501 of the Financial 17 | |
| 311 | - | Institutions Article. 18 | |
| 456 | + | [(j)] (K) (1) “Loan” means any single extension of closed end credit, whether 22 | |
| 457 | + | repayable in installments, on demand, or otherwise and whether extended in one or more 23 | |
| 458 | + | advances. 24 | |
| 312 | 459 | ||
| 313 | - | ||
| 314 | - | ||
| 460 | + | (2) “Loan” includes an advance made in accordance with the terms of a 25 | |
| 461 | + | shared appreciation agreement. 26 | |
| 315 | 462 | ||
| 316 | - | [(j)] (K) (1) “Outstanding unpaid indebtedness” means on any day the total 21 | |
| 317 | - | amount of purchases and loans charged to the borrower’s account under the plan which is 22 | |
| 318 | - | outstanding and unpaid at the end of the day, after adding the aggregate amount of any 23 | |
| 319 | - | new purchases and loans charged to the account that day and deducting the aggregate 24 | |
| 320 | - | amount of any payments and credits applied to the account that day. 25 | |
| 463 | + | [(k)] (L) “Mechanical repair contract” has the meaning stated in Title 15, 27 | |
| 464 | + | Subtitle 3 of the Transportation Article. 28 | |
| 321 | 465 | ||
| 322 | - | (2) If the agreement governing the plan permits, “outstanding unpaid 26 | |
| 323 | - | indebtedness” may include the amount of any interest, finance charges, and additional 27 | |
| 324 | - | charges, including late or delinquency charges, that have accrued in the account and are 28 | |
| 325 | - | unpaid at the end of the day. 29 | |
| 466 | + | [(l)] (M) “Mobile home” has the meaning stated in § 11–501 of the Financial 29 | |
| 467 | + | Institutions Article. 30 | |
| 326 | 468 | ||
| 327 | - | [(k)] (L) “Purchase” means an extension of credit for a purchase of real or 30 | |
| 328 | - | personal, tangible or intangible property, or an extension of credit for services, licenses, 31 | |
| 329 | - | taxes, official fees, fines, private or governmental obligations, or any other thing of value, 32 | |
| 330 | - | including a charitable contribution. 33 | |
| 331 | - | 8 HOUSE BILL 1294 | |
| 469 | + | [(m)] (N) “Remaining loan balance”, when used in reference to a debt cancellation 31 | |
| 470 | + | agreement, does not include: 32 | |
| 332 | 471 | ||
| 333 | - | ||
| 334 | - | [(l)] (M) “Residential real property” means owner–occupied real property having 1 | |
| 335 | - | a dwelling on it designated principally as a residence with accommodations for not more 2 | |
| 336 | - | than four families. 3 | |
| 337 | - | ||
| 338 | - | [(m)] (N) “Revolving credit plan” or “plan” means a plan that contemplates the 4 | |
| 339 | - | extension of credit under an account governed by an agreement between a credit grantor 5 | |
| 340 | - | and a borrower under which: 6 | |
| 341 | - | ||
| 342 | - | (1) The credit grantor permits the borrower and, if the agreement 7 | |
| 343 | - | governing the plan permits, persons acting on behalf of or with authorization from the 8 | |
| 344 | - | borrower to make purchases or obtain loans from time to time; 9 | |
| 345 | - | ||
| 346 | - | (2) The amounts of purchases and loans are charged to the borrower’s 10 | |
| 347 | - | account; 11 | |
| 348 | - | ||
| 349 | - | (3) The borrower is required to pay the credit grantor the amounts of all 12 | |
| 350 | - | purchases and loans charged to the borrower’s account under the plan but has the privilege 13 | |
| 351 | - | of paying amounts due from time to time as agreed; and 14 | |
| 352 | - | ||
| 353 | - | (4) Interest or finance charges may be charged and collected by the credit 15 | |
| 354 | - | grantor from time to time on the amounts due under the plan. 16 | |
| 355 | - | ||
| 356 | - | [(n)] (O) “Shared appreciation agreement” has the meaning stated in § 11–501 17 | |
| 357 | - | of the Financial Institutions Article. 18 | |
| 358 | - | ||
| 359 | - | (P) “TIP” HAS THE MEANING STAT ED IN § 12–101 OF THIS TITLE. 19 | |
| 360 | - | ||
| 361 | - | 12–927. 20 | |
| 362 | - | ||
| 363 | - | (A) A LENDER WHO GIVES CON SUMERS AN OPTION TO PROVIDE THE 21 | |
| 364 | - | LENDER A TIP SHALL : 22 | |
| 365 | - | ||
| 366 | - | (1) DISCLOSE TO THE CONSU MER TO WHOM THE TIP WILL BE 23 | |
| 367 | - | ALLOCATED; AND 24 | |
| 368 | - | ||
| 369 | - | (2) SET THE DEFAULT TIP A T ZERO. 25 | |
| 370 | - | ||
| 371 | - | (B) A LENDER MAY NOT SUGGE ST THAT PROVIDING A TIP WILL INFLUENCE : 26 | |
| 372 | - | ||
| 373 | - | (1) THE LENDER ’S WILLINGNESS TO PRO VIDE A LOAN TO A 27 | |
| 374 | - | CONSUMER AT ANY TIME ; OR 28 | |
| 375 | - | ||
| 376 | - | (2) THE TERMS OF ANY EARN ED WAGE ACCESS OFFER ED TO THE 29 | |
| 377 | - | CONSUMER BY THAT LEN DER. 30 | |
| 378 | - | HOUSE BILL 1294 9 | |
| 379 | - | ||
| 380 | - | ||
| 381 | - | (C) A LENDER WHO RECEIVES A TIP THAT WOULD OTH ERWISE CREATE A 1 | |
| 382 | - | RATE OF INTEREST ABO VE THAT ALLOWED UNDE R THIS SUBTITLE MAY NOT BE 2 | |
| 383 | - | FOUND IN VIOLATION O F THIS SUBTITLE IF T HE LENDER RETURNS ALL O F THE TIP 3 | |
| 384 | - | OR THAT PORTION OF T HE TIP NECESSARY TO REDUCE THE RATE OF I NTEREST TO 4 | |
| 385 | - | AN AMOUNT ALLOWED UN DER THIS SUBTITLE WI THIN 30 CALENDAR DAYS AFTER 5 | |
| 386 | - | RECEIVING THE TIP . 6 | |
| 387 | - | ||
| 388 | - | (D) A LENDER SHALL PROMINE NTLY DISCLOSE THAT : 7 | |
| 389 | - | ||
| 390 | - | (1) PROVIDING A T IP DOES NOT INFLUENC E THE LENDER ’S 8 | |
| 391 | - | WILLINGNESS TO PROVI DE A LOAN TO THE CON SUMER AT ANY TIME ; AND 9 | |
| 392 | - | ||
| 393 | - | (2) ANY TIP PAID BY THE CONSUMER DOES NOT INU RE TO THE DIRECT 10 | |
| 394 | - | BENEFIT OF ANY SPECI FIC EMPLOYEE OF THE LENDER OR ANY OTHER INDIVIDUAL. 11 | |
| 395 | - | ||
| 396 | - | 12–1001. 12 | |
| 397 | - | ||
| 398 | - | (a) In this subtitle the following words have the meanings indicated. 13 | |
| 399 | - | ||
| 400 | - | (b) (1) “Balloon payment” means any scheduled payment on an installment 14 | |
| 401 | - | loan that is more than 2 times the average of all other payments scheduled to repay the 15 | |
| 402 | - | installment loan. 16 | |
| 403 | - | ||
| 404 | - | (2) “Balloon payment” does not include a down payment. 17 | |
| 405 | - | ||
| 406 | - | (c) “Borrower” means a corporation, partnership, association, government, or 18 | |
| 407 | - | governmental subdivision or agency, trust, individual, or other entity receiving a loan or 19 | |
| 408 | - | other extension of credit under this subtitle. 20 | |
| 409 | - | ||
| 410 | - | (d) “Closed end credit” means the extension of credit by a credit grantor to a 21 | |
| 411 | - | borrower under an arrangement or agreement which is not a revolving credit plan as 22 | |
| 412 | - | defined in Subtitle 9 of this title. 23 | |
| 413 | - | ||
| 414 | - | (e) “Commercial loan” and “extension of credit for a commercial purpose” mean 24 | |
| 415 | - | an extension of credit made: 25 | |
| 416 | - | ||
| 417 | - | (1) Solely to acquire an interest in or to carry on a business or commercial 26 | |
| 418 | - | enterprise; or 27 | |
| 419 | - | ||
| 420 | - | (2) To any business or commercial organization. 28 | |
| 421 | - | ||
| 422 | - | (f) “Consumer borrower” means an individual receiving a loan or other extension 29 | |
| 423 | - | of credit under this subtitle for personal, household, or family purposes or an individual 30 | |
| 424 | - | receiving a commercial loan or other extension of credit for any commercial purpose not in 31 | |
| 425 | - | excess of $75,000, secured by residential real property. 32 | |
| 426 | - | 10 HOUSE BILL 1294 | |
| 427 | - | ||
| 428 | - | ||
| 429 | - | (g) (1) “Credit grantor” means any individual, corporation, business trust, 1 | |
| 430 | - | statutory trust, estate, trust, partnership, association, two or more persons having a joint 2 | |
| 431 | - | or common interest, or any other legal or commercial entity making a loan or other 3 | |
| 432 | - | extension of credit under this subtitle which is incorporated, chartered, or licensed 4 | |
| 433 | - | pursuant to State or federal law, the lending operations of which are subject to supervision, 5 | |
| 434 | - | examination, and regulation by a State or federal agency or which is licensed under Title 6 | |
| 435 | - | 12, Subtitle 4 of the Financial Institutions Article or is a retailer. 7 | |
| 436 | - | ||
| 437 | - | (2) “Credit grantor” includes: 8 | |
| 438 | - | ||
| 439 | - | (i) Any bank, trust company, depository institution, or savings bank 9 | |
| 440 | - | having a branch in this State; 10 | |
| 441 | - | ||
| 442 | - | (ii) A person not required to be licensed under this subtitle, who is 11 | |
| 443 | - | exempt from the licensing provisions of Title 11, Subtitle 5 of the Financial Institutions 12 | |
| 444 | - | Article, who makes a loan or extension of credit under this subtitle secured by a secondary 13 | |
| 445 | - | mortgage on residential real property; and 14 | |
| 446 | - | ||
| 447 | - | (iii) Any person who acquires or obtains the assignment of an 15 | |
| 448 | - | agreement for an extension of credit made under this subtitle. 16 | |
| 449 | - | ||
| 450 | - | (h) “Debt cancellation agreement” means an agreement between a credit grantor 17 | |
| 451 | - | and a borrower which provides for cancellation of the remaining loan balance in the event 18 | |
| 452 | - | of theft or total destruction of the collateral for the loan minus the proceeds of any insurance 19 | |
| 453 | - | maintained on the collateral for the loan or, if the borrower does not have insurance, the 20 | |
| 454 | - | actual cash value of the collateral at the time of loss, determined as provided in the 21 | |
| 455 | - | agreement. 22 | |
| 456 | - | ||
| 457 | - | (i) “Installment loan” means a loan repayable in scheduled periodic payments of 23 | |
| 458 | - | principal and interest. 24 | |
| 459 | - | ||
| 460 | - | (J) “INTEREST” HAS THE MEANING STAT ED IN § 12–101 OF THIS TITLE. 25 | |
| 461 | - | ||
| 462 | - | [(j)] (K) (1) “Loan” means any single extension of closed end credit, whether 26 | |
| 463 | - | repayable in installments, on demand, or otherwise and whether extended in one or more 27 | |
| 464 | - | advances. 28 | |
| 465 | - | ||
| 466 | - | (2) “Loan” includes an advance made in accordance with the terms of a 29 | |
| 467 | - | shared appreciation agreement. 30 | |
| 468 | - | ||
| 469 | - | [(k)] (L) “Mechanical repair contract” has the meaning stated in Title 15, 31 | |
| 470 | - | Subtitle 3 of the Transportation Article. 32 | |
| 471 | - | ||
| 472 | - | [(l)] (M) “Mobile home” has the meaning stated in § 11–501 of the Financial 33 | |
| 473 | - | Institutions Article. 34 | |
| 472 | + | (1) Any delinquent or deferred payments; 33 | |
| 474 | 473 | HOUSE BILL 1294 11 | |
| 475 | 474 | ||
| 476 | 475 | ||
| 477 | - | [(m)] (N) “Remaining loan balance”, when used in reference to a debt cancellation 1 | |
| 478 | - | agreement, does not include: 2 | |
| 476 | + | (2) Past due charges; 1 | |
| 479 | 477 | ||
| 480 | - | ( | |
| 478 | + | (3) Late payment charges; 2 | |
| 481 | 479 | ||
| 482 | - | ( | |
| 480 | + | (4) Unearned interest; 3 | |
| 483 | 481 | ||
| 484 | - | ( | |
| 482 | + | (5) Unearned rental payments; 4 | |
| 485 | 483 | ||
| 486 | - | (4) Unearned interest; 6 | |
| 484 | + | (6) The portion of any financed taxes or charges, including charges for 5 | |
| 485 | + | credit life insurance, credit health insurance, credit involuntary unemployment benefit 6 | |
| 486 | + | insurance, and mechanical repair contracts, actually refunded to the borrower or credited 7 | |
| 487 | + | as a reduction to the loan balance; or 8 | |
| 487 | 488 | ||
| 488 | - | (5) Unearned rental payments; 7 | |
| 489 | + | (7) By agreement of the parties, the amount of any primary insurance 9 | |
| 490 | + | deductible. 10 | |
| 489 | 491 | ||
| 490 | - | (6) The portion of any financed taxes or charges, including charges for 8 | |
| 491 | - | credit life insurance, credit health insurance, credit involuntary unemployment benefit 9 | |
| 492 | - | insurance, and mechanical repair contracts, actually refunded to the borrower or credited 10 | |
| 493 | - | as a reduction to the loan balance; or 11 | |
| 492 | + | [(n)] (O) “Residential real property” means owner–occupied real property having 11 | |
| 493 | + | a dwelling on it designated principally as a residence with accommodations for not more 12 | |
| 494 | + | than four families. 13 | |
| 494 | 495 | ||
| 495 | - | ( | |
| 496 | - | ||
| 496 | + | [(o)] (P) “Shared appreciation agreement” has the meaning stated in § 11–501 14 | |
| 497 | + | of the Financial Institutions Article. 15 | |
| 497 | 498 | ||
| 498 | - | [(n)] (O) “Residential real property” means owner–occupied real property having 14 | |
| 499 | - | a dwelling on it designated principally as a residence with accommodations for not more 15 | |
| 500 | - | than four families. 16 | |
| 499 | + | (Q) “TIP” HAS THE MEANING STAT ED IN § 12–101 OF THIS TITLE. 16 | |
| 501 | 500 | ||
| 502 | - | [(o)] (P) “Shared appreciation agreement” has the meaning stated in § 11–501 17 | |
| 503 | - | of the Financial Institutions Article. 18 | |
| 501 | + | 12–1031. 17 | |
| 504 | 502 | ||
| 505 | - | (Q) “TIP” HAS THE MEANING STAT ED IN § 12–101 OF THIS TITLE. 19 | |
| 503 | + | (A) A LENDER WHO GIVES CON SUMERS AN OPTION TO PROVIDE THE 18 | |
| 504 | + | LENDER A TIP SHALL : 19 | |
| 506 | 505 | ||
| 507 | - | 12–1031. 20 | |
| 506 | + | (1) DISCLOSE TO THE CONSU MER TO WHOM THE TIP WILL BE 20 | |
| 507 | + | ALLOCATED; AND 21 | |
| 508 | 508 | ||
| 509 | - | (A) A LENDER WHO GIVES CON SUMERS AN OPTION TO PROVIDE THE 21 | |
| 510 | - | LENDER A TIP SHALL : 22 | |
| 509 | + | (2) SET THE DEFAULT TIP AT Z ERO. 22 | |
| 511 | 510 | ||
| 512 | - | (1) DISCLOSE TO THE CONSU MER TO WHOM THE TIP WILL BE 23 | |
| 513 | - | ALLOCATED; AND 24 | |
| 511 | + | (B) A LENDER MAY NOT SUGGE ST THAT PROVIDING A TIP WILL INFLUENCE : 23 | |
| 514 | 512 | ||
| 515 | - | (2) SET THE DEFAULT TIP A T ZERO. 25 | |
| 513 | + | (1) THE LENDER ’S WILLINGNESS TO PRO VIDE A LOAN TO A 24 | |
| 514 | + | CONSUMER AT ANY TIME ; OR 25 | |
| 516 | 515 | ||
| 517 | - | (B) A LENDER MAY NOT SUGGE ST THAT PROVIDING A TIP WILL INFLUENCE : 26 | |
| 516 | + | (2) THE TERMS OF ANY LOAN OFFERED TO THE CONSU MER BY THAT 26 | |
| 517 | + | LENDER. 27 | |
| 518 | 518 | ||
| 519 | - | ( | |
| 520 | - | ||
| 521 | - | 12 HOUSE BILL 1294 | |
| 519 | + | (C) A LENDER WHO RECEIVES A TIP THAT WOULD OTH ERWISE CREATE A 28 | |
| 520 | + | RATE OF INTEREST ABO VE THAT ALLOWED UNDE R THIS SUBTITLE MAY NOT BE 29 | |
| 521 | + | FOUND IN VIOLATION O F THIS SUBTITLE IF T HE LENDER RETURNS AL L OF THE TIP 30 12 HOUSE BILL 1294 | |
| 522 | 522 | ||
| 523 | 523 | ||
| 524 | - | (2) THE TERMS OF ANY LOAN OFFERED TO THE CONSU MER BY THAT 1 | |
| 525 | - | LENDER. 2 | |
| 524 | + | OR THAT PORTION OF T HE TIP NECESSARY TO REDUCE THE RATE OF I NTEREST TO 1 | |
| 525 | + | AN AMOUNT ALLOWED UN DER THIS SUBTITLE WI THIN 30 CALENDAR DAYS AFTER 2 | |
| 526 | + | RECEIVING THE TIP . 3 | |
| 526 | 527 | ||
| 527 | - | (C) A LENDER WHO RECEIVES A TIP THAT WOULD OTH ERWISE CREATE A 3 | |
| 528 | - | RATE OF INTEREST ABO VE THAT ALLOWED UNDER THIS S UBTITLE MAY NOT BE 4 | |
| 529 | - | FOUND IN VIOLATION O F THIS SUBTITLE IF T HE LENDER RETURNS AL L OF THE TIP 5 | |
| 530 | - | OR THAT PORTION OF T HE TIP NECESSARY TO REDUCE THE RATE OF I NTEREST TO 6 | |
| 531 | - | AN AMOUNT ALLOWED UN DER THIS SUBTITLE WI THIN 30 CALENDAR DAYS AFTER 7 | |
| 532 | - | RECEIVING THE TIP. 8 | |
| 528 | + | (D) A LENDER SHALL PROMINE NTLY DISCLOSE THAT : 4 | |
| 533 | 529 | ||
| 534 | - | (D) A LENDER SHALL PROMINE NTLY DISCLOSE THAT : 9 | |
| 530 | + | (1) PROVIDING A TIP DOES NOT INFLUENCE THE LE NDER’S 5 | |
| 531 | + | WILLINGNESS TO PROVI DE A LOAN TO THE CON SUMER AT ANY TIME ; AND 6 | |
| 535 | 532 | ||
| 536 | - | ( | |
| 537 | - | ||
| 533 | + | (2) ANY TIP PAID BY THE CONSUMER DOES NOT INU RE TO THE DIRECT 7 | |
| 534 | + | BENEFIT OF ANY SPECI FIC EMPLOYEE OF THE LENDER OR ANY OTHER INDIVIDUAL . 8 | |
| 538 | 535 | ||
| 539 | - | (2) ANY TIP PAID BY THE CONSUMER DOES NOT INU RE TO THE DIRECT 12 | |
| 540 | - | BENEFIT OF ANY SPECIFIC EMPLOYE E OF THE LENDER OR A NY OTHER INDIVIDUAL . 13 | |
| 536 | + | SUBTITLE 15. EARNED WAGE ACCESS. 9 | |
| 541 | 537 | ||
| 542 | - | ||
| 538 | + | 12–1501. 10 | |
| 543 | 539 | ||
| 544 | - | 12–1501. 15 | |
| 540 | + | (A) IN THIS SUBTITLE THE FOLLOWING TERMS HAVE THE MEANINGS 11 | |
| 541 | + | INDICATED. 12 | |
| 545 | 542 | ||
| 546 | - | (A) IN THIS SUBTITLE THE FOLLOWING TERMS HAVE THE MEANINGS 16 | |
| 547 | - | INDICATED. 17 | |
| 543 | + | (B) “BANK” HAS THE MEANING STAT ED IN § 1–201 OF THIS ARTICLE. 13 | |
| 548 | 544 | ||
| 549 | - | (B) “BANK” HAS THE MEANING STAT ED IN § 1–201 OF THIS ARTICLE. 18 | |
| 545 | + | (C) “CONSUMER REPORTING AG ENCY” HAS THE MEANING STAT ED IN § 14 | |
| 546 | + | 14–1201 OF THIS ARTICLE. 15 | |
| 550 | 547 | ||
| 551 | - | ( | |
| 552 | - | ||
| 548 | + | (D) “CONSUMER–DIRECTED EARNED WAGE ACCESS ” MEANS DELIVERY TO A 16 | |
| 549 | + | CONSUMER OF ACCESS TO UNPAID BUT EARNED WAGES : 17 | |
| 553 | 550 | ||
| 554 | - | ( | |
| 555 | - | ||
| 551 | + | (1) THAT IS PROVIDED TO A CONSUME R BY A THIRD PARTY W HO DOES 18 | |
| 552 | + | NOT HAVE A RELATIONS HIP WITH THE CONSUME R’S EMPLOYER; 19 | |
| 556 | 553 | ||
| 557 | - | ( | |
| 558 | - | ||
| 554 | + | (2) THAT IS BASED ON EMPL OYMENT, INCOME, OR ATTENDANCE 20 | |
| 555 | + | DATA OBTAINED DIRECT LY FROM THE CONSUMER ; AND 21 | |
| 559 | 556 | ||
| 560 | - | (2) THAT IS BASED ON EMPL OYMENT, INCOME, OR ATTENDANCE 25 | |
| 561 | - | DATA OBTAINED DIRECT LY FROM THE CONSUMER ; AND 26 | |
| 557 | + | (3) WHERE THE CONSUMER DO ES NOT PAY THE PROVI DER INTEREST. 22 | |
| 562 | 558 | ||
| 563 | - | (3) WHERE THE CONSUMER DO ES NOT PAY THE PROVI DER INTEREST. 27 | |
| 559 | + | (E) “EARNED WAGE ” MEANS SALARY, WAGES, COMPENSATION , OR OTHER 23 | |
| 560 | + | INCOME EARNED : 24 | |
| 564 | 561 | ||
| 565 | - | (E) “EARNED WAGE ” MEANS SALARY , WAGES, COMPENSATION , OR OTHER 28 | |
| 566 | - | INCOME EARNED : 29 | |
| 562 | + | (1) ON AN HOURLY, PROJECT–BASED, PIECEWORK, OR OTHER BASIS ; 25 | |
| 563 | + | OR 26 | |
| 564 | + | ||
| 565 | + | (2) THROUGH SERVICES REND ERED AS AN INDEPENDE NT 27 | |
| 566 | + | CONTRACTOR . 28 | |
| 567 | 567 | HOUSE BILL 1294 13 | |
| 568 | 568 | ||
| 569 | 569 | ||
| 570 | - | (1) ON AN HOURLY, PROJECT–BASED, PIECEWORK, OR OTHER BASIS ; 1 | |
| 571 | - | OR 2 | |
| 570 | + | (F) “EARNED WAGE ACCESS ” MEANS: 1 | |
| 572 | 571 | ||
| 573 | - | (2) THROUGH SERVICES REND ERED AS AN INDEPENDE NT 3 | |
| 574 | - | CONTRACTOR . 4 | |
| 572 | + | (1) CONSUMER–DIRECTED EARNED WAGE ACCESS; OR 2 | |
| 575 | 573 | ||
| 576 | - | ( | |
| 574 | + | (2) EMPLOYER–INTEGRATED EARNED WA GE ACCESS. 3 | |
| 577 | 575 | ||
| 578 | - | (1) CONSUMER–DIRECTED EARNED WAGE ACCESS; OR 6 | |
| 576 | + | (G) “EMPLOYER–INTEGRATED EARNED WA GE ACCESS” MEANS DELIVERY 4 | |
| 577 | + | OF UNPAID BUT EARNED WAGE S: 5 | |
| 579 | 578 | ||
| 580 | - | (2) EMPLOYER–INTEGRATED EARNED WA GE ACCESS. 7 | |
| 579 | + | (1) THAT ARE PROVIDED TO A CONSUMER DIRECTLY BY A PERSON 6 | |
| 580 | + | THE EMPLOYER HAS CON TRACTED TO PROVIDE T HE SERVICE; 7 | |
| 581 | 581 | ||
| 582 | - | (G) “EMPLOYER–INTEGRATED EARNED WA GE ACCESS” MEANS DELIVERY 8 | |
| 583 | - | OF UNPAID BUT EARNED WAGES: 9 | |
| 582 | + | (2) THAT ARE DETERMINED BASED ON EMPLOYMENT , INCOME, OR 8 | |
| 583 | + | ATTENDANCE DATA OBTA INED DIRECTLY OR IND IRECTLY FROM THE CON SUMER’S 9 | |
| 584 | + | EMPLOYER, INCLUDING A PAYROLL SERVICE PROVIDER ; AND 10 | |
| 584 | 585 | ||
| 585 | - | (1) THAT ARE PROVIDED TO A CONSUMER DIRECTLY BY A PERSON 10 | |
| 586 | - | THE EMPLOYER HAS CON TRACTED TO PROVIDE T HE SERVICE; 11 | |
| 586 | + | (3) WHERE THE CONSUMER DO ES NOT PAY THE PROVI DER INTEREST. 11 | |
| 587 | 587 | ||
| 588 | - | (2) THAT ARE DETERMINED B ASED ON EMPLOYMENT , INCOME, OR 12 | |
| 589 | - | ATTENDANCE DATA OBTA INED DIRECTLY OR IND IRECTLY FROM THE CON SUMER’S 13 | |
| 590 | - | EMPLOYER, INCLUDING A PAYROLL SERVICE PROVIDER ; AND 14 | |
| 588 | + | (H) (1) “FEE” MEANS: 12 | |
| 591 | 589 | ||
| 592 | - | (3) WHERE THE CONSUMER DO ES NOT PAY THE PROVI DER INTEREST. 15 | |
| 590 | + | (I) A FEE IMPOSED BY A PRO VIDER FOR DELIVERY O R 13 | |
| 591 | + | EXPEDITED DELIVERY O F EARNED WAGE ACCESS TO A CONSUMER ; OR 14 | |
| 593 | 592 | ||
| 594 | - | (H) (1) “FEE” MEANS: 16 | |
| 593 | + | (II) A SUBSCRIPTION OR MEMB ERSHIP FEE IMPOSED B Y A 15 | |
| 594 | + | PROVIDER FOR A GROUP OF SERVICES THAT INC LUDES EARNED WAGE ACCESS . 16 | |
| 595 | 595 | ||
| 596 | - | ( | |
| 597 | - | ||
| 596 | + | (2) “FEE” DOES NOT INCLUDE A V OLUNTARY TIP , GRATUITY, OR 17 | |
| 597 | + | OTHER DONATION . 18 | |
| 598 | 598 | ||
| 599 | - | ( | |
| 600 | - | ||
| 599 | + | (I) (1) “INTEREST” HAS THE MEANING STAT ED IN § 12–101 OF THIS 19 | |
| 600 | + | TITLE. 20 | |
| 601 | 601 | ||
| 602 | - | (2) “FEE” DOES NOT INCLUDE A VOLUNTARY TIP, GRATUITY, OR 21 | |
| 603 | - | OTHER DONATION . 22 | |
| 602 | + | (2) “INTEREST” DOES NOT INCLUDE A F EE IMPOSED BY AN EAR NED 21 | |
| 603 | + | WAGE ACCESS PROVIDER LICENSED UNDER TITLE 11, SUBTITLE 2 OF THE 22 | |
| 604 | + | FINANCIAL INSTITUTIONS ARTICLE. 23 | |
| 604 | 605 | ||
| 605 | - | (I) (1) “INTEREST” HAS THE MEANING STAT ED IN § 12–101 OF THIS 23 | |
| 606 | - | TITLE. 24 | |
| 606 | + | (J) (1) “LOAN” HAS THE MEANING STAT ED IN § 12–101 OF THIS TITLE. 24 | |
| 607 | 607 | ||
| 608 | - | (2) “INTEREST” DOES NOT INCLUDE A F EE IMPOSED BY AN EAR NED 25 | |
| 609 | - | WAGE ACCESS PROVIDER LICENSED UNDER TITLE 11, SUBTITLE 2 OF THE 26 | |
| 610 | - | FINANCIAL INSTITUTIONS ARTICLE. 27 | |
| 608 | + | (2) “LOAN” INCLUDES EARNED WAGE ACCESS, SUBJECT TO THE 25 | |
| 609 | + | PROVISIONS OF THIS S UBTITLE. 26 | |
| 611 | 610 | ||
| 612 | - | (J) (1) “LOAN” HAS THE MEANING STAT ED IN § 12–101 OF THIS TITLE. 28 | |
| 613 | - | 14 HOUSE BILL 1294 | |
| 614 | - | ||
| 615 | - | ||
| 616 | - | (2) “LOAN” INCLUDES EARNED WAGE ACCESS, SUBJECT TO THE 1 | |
| 617 | - | PROVISIONS OF THIS S UBTITLE. 2 | |
| 618 | - | ||
| 619 | - | (K) “PAYROLL PERIOD ” MEANS A PERIOD OF TI ME DURING WHICH A 3 | |
| 620 | - | CONSUMER EARNS WAGES THAT AN EMPLOY ER OWES TO THE EMPLO YEE AT THE END 4 | |
| 621 | - | OF THE PERIOD. 5 | |
| 622 | - | ||
| 623 | - | (L) “PROCEEDS” MEANS A PAYMENT TO A CONSUMER BY A PROVID ER THAT 6 | |
| 624 | - | IS BASED ON UNPAID B UT EARNED WAGES . 7 | |
| 625 | - | ||
| 626 | - | (M) (1) “PROVIDER” MEANS A PERSON WHO P ROVIDES TO CONSUMERS 8 | |
| 627 | - | EITHER CONSUMER –DIRECTED EARNED WAGE ACC ESS OR EMPLOYER –INTEGRATED 9 | |
| 628 | - | EARNED WAGE ACCESS . 10 | |
| 629 | - | ||
| 630 | - | (2) “PROVIDER” DOES NOT INCLUDE : 11 | |
| 631 | - | ||
| 632 | - | (I) A SERVICE PROVIDER , SUCH AS A PAYROLL SE RVICE 12 | |
| 633 | - | PROVIDER, THAT MAY VERIFY THE AVAILABLE EARNINGS O F A CONSUMER BUT THA T 13 | |
| 634 | - | IS NOT CONTRACTUALLY OBLIGATED TO FUND AN Y PROCEEDS DELIVERED AS PART 14 | |
| 635 | - | OF AN EARNED WAGE AC CESS SERVICE; OR 15 | |
| 636 | - | ||
| 637 | - | (II) AN EMPLOYER THAT OFFE RS A PORTION OF SALA RY, 16 | |
| 638 | - | WAGES, OR OTHER COMPENSATIO N DIRECTLY TO ITS EM PLOYEES OR INDEPENDE NT 17 | |
| 639 | - | CONTRACTORS BEFORE A NORMALLY SCHEDULED P AY DATE FOR A PAYROLL 18 | |
| 640 | - | PERIOD. 19 | |
| 641 | - | ||
| 642 | - | (N) “TIP” HAS THE MEANING STAT ED IN § 12–101 OF THIS TITLE. 20 | |
| 643 | - | ||
| 644 | - | (O) “WAGES” HAS THE MEANING STAT ED IN § 12–101 OF THIS TITLE. 21 | |
| 645 | - | ||
| 646 | - | 12–1502. 22 | |
| 647 | - | ||
| 648 | - | (A) A PERSON MAY NOT ENGAG E IN THE BUSINESS OF PROVIDING 23 | |
| 649 | - | EARNED WAGE ACCESS U NLESS THE PERSO N IS LICENSED UNDER OR IS EXEMPT 24 | |
| 650 | - | FROM THE LICENSING R EQUIREMENTS OF TITLE 11, SUBTITLE 2 OF THE FINANCIAL 25 | |
| 651 | - | INSTITUTIONS ARTICLE. 26 | |
| 652 | - | ||
| 653 | - | (B) FAILURE TO OBTAIN A C ONSUMER LOAN LICENSE SHALL SUBJECT A 27 | |
| 654 | - | PROVIDER TO THE ENFO RCEMENT PROVISIONS O F TITLE 11, SUBTITLE 2 OF THE 28 | |
| 655 | - | FINANCIAL INSTITUTIONS ARTICLE. 29 | |
| 656 | - | ||
| 657 | - | (C) AN EARNED WAGE ACCESS PROVIDER LICENSED UN DER TITLE 11, 30 | |
| 658 | - | SUBTITLE 2 OF THE FINANCIAL INSTITUTIONS ARTICLE AND SUBJECT T O THIS 31 | |
| 659 | - | SUBTITLE IS EXEMPT F ROM OTHER PROVISIONS OF STATE LAW GOVERNING 32 HOUSE BILL 1294 15 | |
| 660 | - | ||
| 661 | - | ||
| 662 | - | LENDING, CREDIT, OR DEBT, INCLUDING THE PROVIS IONS OF SUBTITLE 1, 1 | |
| 663 | - | SUBTITLE 3, SUBTITLE 9, AND SUBTITLE 10 OF THIS TITLE. 2 | |
| 664 | - | ||
| 665 | - | (D) EARNED WAGE ACCESS SE RVICES PROVIDED IN A CCORDANCE WITH 3 | |
| 666 | - | THIS SUBTITLE MAY NO T BE CONSIDERED : 4 | |
| 667 | - | ||
| 668 | - | (1) A MONEY TRANSMISSION ; OR 5 | |
| 669 | - | ||
| 670 | - | (2) A VIOLATION OF OR NONCOMPLIANCE WITH STATE LAWS 6 | |
| 671 | - | GOVERNING DEDUCTIONS FROM PAYROLL , SALARY, WAGES, COMPENSATION , OR 7 | |
| 672 | - | OTHER INCOME OR THE PURCHASE, SALE, ASSIGNMENT , OR ORDER FOR UNPAID BUT 8 | |
| 673 | - | EARNED WAGES . 9 | |
| 674 | - | ||
| 675 | - | 12–1503. 10 | |
| 676 | - | ||
| 677 | - | (A) A PROVIDER OF EARNED W AGE ACCESS SHALL : 11 | |
| 678 | - | ||
| 679 | - | (1) DEVELOP AN D IMPLEMENT POLICIES AND PROCEDURES TO 12 | |
| 680 | - | RESPOND TO QUESTIONS RAISED BY CONSUMERS ; 13 | |
| 681 | - | ||
| 682 | - | (2) ADDRESS COMPLAINTS FR OM CONSUMERS IN AN E XPEDIENT 14 | |
| 683 | - | MANNER; 15 | |
| 684 | - | ||
| 685 | - | (3) WHENEVER THE PROVIDER OFFERS A CONSUMER TH E OPTION TO 16 | |
| 686 | - | RECEIVE EARNED WAGE ACCESS SERVICES FOR A FEE OR SOLICITS AN OPTIONAL 17 | |
| 687 | - | TIP, GRATUITY, OR OTHER DONATION , OFFER TO THE CONSUME R AT LEAST ONE 18 | |
| 688 | - | REASONABLE OPTION TO OBTAIN EARNED WAGE A CCESS AT NO COST TO THE 19 | |
| 689 | - | CONSUMER ; 20 | |
| 690 | - | ||
| 691 | - | (4) CLEARLY EXPLAIN TO A CONSUMER HOW TO ELEC T A NO–COST 21 | |
| 692 | - | OPTION DESCRIBED IN ITEM (3) OF THIS SUBSECTION ; 22 | |
| 693 | - | ||
| 694 | - | (5) BEFORE ENTERING INTO AN AGREEMENT WITH A CONSUMER FOR 23 | |
| 695 | - | THE PROVISION OF EAR NED WAGE ACCESS SERV ICES: 24 | |
| 696 | - | ||
| 697 | - | (I) INFORM THE CONSUMER O F THE CONSUMER ’S RIGHTS 25 | |
| 698 | - | UNDER THE AGREEMENT ; AND 26 | |
| 699 | - | ||
| 700 | - | (II) FULLY AND CLEARLY DIS CLOSE ALL FEES ASSOCIATED 27 | |
| 701 | - | WITH THE EARNED WAGE ACCESS SERVICES ; 28 | |
| 702 | - | ||
| 703 | - | (6) INFORM A CONSUMER OF ANY MATERIAL CHANGES TO THE TERMS 29 | |
| 704 | - | AND CONDITIONS OF TH E EARNED WAGE ACCESS SERVICES BEFORE IMPL EMENTING 30 | |
| 705 | - | THOSE CHANGES FOR TH AT CONSUMER ; 31 16 HOUSE BILL 1294 | |
| 611 | + | (K) “PAYROLL PERIOD ” MEANS A PERIOD OF TI ME DURING WHICH A 27 | |
| 612 | + | CONSUMER EARNS WAGES THAT AN EMPLOYER OWE S TO THE EMPLOYEE AT THE END 28 | |
| 613 | + | OF THE PERIOD. 29 14 HOUSE BILL 1294 | |
| 706 | 614 | ||
| 707 | 615 | ||
| 708 | 616 | ||
| 709 | - | (7) ALLOW A CONSUMER TO C ANCEL USE OF T HE PROVIDER ’S 1 | |
| 710 | - | EARNED WAGE ACCESS S ERVICES AT ANY TIME WITHOUT INCURRING A 2 | |
| 711 | - | CANCELLATION FEE IMP OSED BY THE PROVIDER ; 3 | |
| 617 | + | (L) “PROCEEDS” MEANS A PAYMENT TO A CONSUMER BY A PROVID ER THAT 1 | |
| 618 | + | IS BASED ON UNPAID B UT EARNED WAGES . 2 | |
| 712 | 619 | ||
| 713 | - | (8) COMPLY WITH ALL APPLI CABLE LOCAL , STATE, AND FEDERAL 4 | |
| 714 | - | PRIVACY AND INFORMAT ION SECURITY LAWS ; 5 | |
| 620 | + | (M) (1) “PROVIDER” MEANS A PERSON WHO P ROVIDES TO CONSUMERS 3 | |
| 621 | + | EITHER CONSUMER –DIRECTED EARNED WAGE ACCESS OR EMPLOYER–INTEGRATED 4 | |
| 622 | + | EARNED WAGE ACCESS . 5 | |
| 715 | 623 | ||
| 716 | - | (9) IF A PROVIDER SOLICIT S, CHARGES, OR RECEIVES A TIP , 6 | |
| 717 | - | GRATUITY, OR OTHER DONATION FR OM A CONSUMER : 7 | |
| 624 | + | (2) “PROVIDER” DOES NOT INCLUDE : 6 | |
| 718 | 625 | ||
| 719 | - | (I) SET THE DEFAULT TIP , IF ANY, AT ZERO; 8 | |
| 626 | + | (I) A SERVICE PROVIDER , SUCH AS A PAYROLL SE RVICE 7 | |
| 627 | + | PROVIDER, THAT MAY VERIFY THE AVAILABLE EARNINGS O F A CONSUMER BUT THA T 8 | |
| 628 | + | IS NOT CONTRACTUALLY OBLIGA TED TO FUND ANY PROC EEDS DELIVERED AS PA RT 9 | |
| 629 | + | OF AN EARNED WAGE AC CESS SERVICE; OR 10 | |
| 720 | 630 | ||
| 721 | - | (II) | |
| 722 | - | ||
| 723 | - | ||
| 724 | - | ||
| 631 | + | (II) AN EMPLOYER THAT OFFE RS A PORTION OF SALA RY, 11 | |
| 632 | + | WAGES, OR OTHER COMPENSATIO N DIRECTLY TO ITS EM PLOYEES OR INDEPENDE NT 12 | |
| 633 | + | CONTRACTORS BEFORE A NORMALLY SCHEDULED PAY DATE FOR A PAYROLL 13 | |
| 634 | + | PERIOD. 14 | |
| 725 | 635 | ||
| 726 | - | (III) CLEARLY AND CONSPICUO USLY DISCLOSE TO THE 13 | |
| 727 | - | CONSUMER IMMEDIATELY PRIOR TO EACH TRANSA CTION THAT A TIP, GRATUITY, OR 14 | |
| 728 | - | OTHER DONATION AMOUN T IS OPTIONAL AND VO LUNTARY; AND 15 | |
| 636 | + | (N) “TIP” HAS THE MEANING STAT ED IN § 12–101 OF THIS TITLE. 15 | |
| 729 | 637 | ||
| 730 | - | (IV) CLEARLY AND CONSPICUO USLY DISCLOSE IN THE 16 | |
| 731 | - | PROVIDER’S SERVICE CONTRACT W ITH THE CONSUMER THA T: 17 | |
| 638 | + | (O) “WAGES” HAS THE MEANING STAT ED IN § 12–101 OF THIS TITLE. 16 | |
| 732 | 639 | ||
| 733 | - | 1. TIPS, GRATUITIES, OR OTHER DONATIONS A RE 18 | |
| 734 | - | VOLUNTARY ; AND 19 | |
| 640 | + | 12–1502. 17 | |
| 735 | 641 | ||
| 736 | - | 2. THE OFFERING OF EARNE D WAGE ACCESS SERVIC ES, 20 | |
| 737 | - | INCLUDING THE AMOUNT OF PROCEEDS A CONSUMER IS ELIGIBLE TO REQUEST AND 21 | |
| 738 | - | THE FREQUENCY WITH W HICH PROCEEDS ARE PR OVIDED TO A CONSUMER , IS NOT 22 | |
| 739 | - | CONTINGENT ON WHETHE R THE CONSUMER PAYS ANY TIP, GRATUITY, OR OTHER 23 | |
| 740 | - | DONATION OR ON THE S IZE OF THE TIP, GRATUITY, OR OTHER DONATION ; 24 | |
| 642 | + | (A) A PERSON MAY NOT ENGAG E IN THE BUSINESS OF PROVIDING 18 | |
| 643 | + | EARNED WAGE ACCESS UNLESS THE PERSON IS LICENSED UNDER OR IS EXEMPT 19 | |
| 644 | + | FROM THE LICENSING R EQUIREMENTS OF TITLE 11, SUBTITLE 2 OF THE FINANCIAL 20 | |
| 645 | + | INSTITUTIONS ARTICLE. 21 | |
| 741 | 646 | ||
| 742 | - | (10) PROVIDE PROCEEDS TO A CONSUMER BY ANY MEAN S MUTUALLY 25 | |
| 743 | - | AGREED UPON BY THE C ONSUMER AND THE PROV IDER; AND 26 | |
| 647 | + | (B) FAILURE TO OBTAIN A C ONSUMER LOAN LICENSE SHALL SUBJECT A 22 | |
| 648 | + | PROVIDER TO THE ENFO RCEMENT PROVISIONS O F TITLE 11, SUBTITLE 2 OF THE 23 | |
| 649 | + | FINANCIAL INSTITUTIONS ARTICLE. 24 | |
| 744 | 650 | ||
| 745 | - | (11) EXCEPT AS PROVIDED IN SUBSECTION (B) OF THIS SECTION , IF 27 | |
| 746 | - | THE PROVIDER WILL SE EK REPAYMENT OF OUTS TANDING PROCEEDS OR PAYMENT 28 | |
| 747 | - | OF FEES OR OTHER AMO UNTS OWED OR INCURRED , INCLUDING VOLUNTARY TIPS, 29 | |
| 748 | - | GRATUITIES, OR OTHER DONATIONS , FROM A CONSUMER ’S ACCOUNT AT A BANK IN 30 | |
| 749 | - | CONNECTION WITH EARN ED WAGE ACCESS SERVI CES COVERED BY THIS SUBTITLE, 31 | |
| 750 | - | INCLUDING BY MEANS O F ELECTRIC FUND TRAN SFER: 32 | |
| 651 | + | (C) AN EARNED WAGE ACCESS PROVIDER LICENSED UN DER TITLE 11, 25 | |
| 652 | + | SUBTITLE 2 OF THE FINANCIAL INSTITUTIONS ARTICLE AND SUBJECT T O THIS 26 | |
| 653 | + | SUBTITLE IS EXEMPT FROM OTHER PROVISIONS OF STATE LAW GOVERNING 27 | |
| 654 | + | LENDING, CREDIT, OR DEBT, INCLUDING THE PROVIS IONS OF SUBTITLE 1, 28 | |
| 655 | + | SUBTITLE 3, SUBTITLE 9, AND SUBTITLE 10 OF THIS TITLE. 29 | |
| 656 | + | ||
| 657 | + | (D) EARNED WAGE ACCESS SE RVICES PROVIDED IN A CCORDANCE WITH 30 | |
| 658 | + | THIS SUBTITLE MAY NO T BE CONSIDERED : 31 | |
| 659 | + | HOUSE BILL 1294 15 | |
| 660 | + | ||
| 661 | + | ||
| 662 | + | (1) A MONEY TRANSMISSION ; OR 1 | |
| 663 | + | ||
| 664 | + | (2) A VIOLATION OF OR N ONCOMPLIANCE WITH STATE LAWS 2 | |
| 665 | + | GOVERNING DEDUCTIONS FROM PAYROLL , SALARY, WAGES, COMPENSATION , OR 3 | |
| 666 | + | OTHER INCOME OR THE PURCHASE, SALE, ASSIGNMENT , OR ORDER FOR UNPAID BUT 4 | |
| 667 | + | EARNED WAGES . 5 | |
| 668 | + | ||
| 669 | + | 12–1503. 6 | |
| 670 | + | ||
| 671 | + | (A) A PROVIDER OF EARNED W AGE ACCESS SHALL : 7 | |
| 672 | + | ||
| 673 | + | (1) DEVELOP AND IMPLEMENT POLICIES AND PROCEDU RES TO 8 | |
| 674 | + | RESPOND TO QUESTIONS RAISED BY CONSUMERS ; 9 | |
| 675 | + | ||
| 676 | + | (2) ADDRESS COMPLAINTS FR OM CONSUMERS IN AN E XPEDIENT 10 | |
| 677 | + | MANNER; 11 | |
| 678 | + | ||
| 679 | + | (3) WHENEVER THE PROVIDER OFFERS A CONSUMER TH E OPTION TO 12 | |
| 680 | + | RECEIVE EARNED WAGE ACCESS SERVICES FOR A FEE OR SOLICIT S AN OPTIONAL 13 | |
| 681 | + | TIP, GRATUITY, OR OTHER DONATION , OFFER TO THE CONSUME R AT LEAST ONE 14 | |
| 682 | + | REASONABLE OPTION TO OBTAIN EAR NED WAGE ACCESS AT N O COST TO THE 15 | |
| 683 | + | CONSUMER ; 16 | |
| 684 | + | ||
| 685 | + | (4) CLEARLY EXPLAIN TO A CONSUMER HOW TO ELECT A NO–COST 17 | |
| 686 | + | OPTION DESCRIBE D IN ITEM (3) OF THIS SUBSECTION; 18 | |
| 687 | + | ||
| 688 | + | (5) BEFORE ENTERING INTO AN AGREEMENT WITH A CONSUMER FOR 19 | |
| 689 | + | THE PROVISION OF EAR NED WAGE ACCESS SERV ICES: 20 | |
| 690 | + | ||
| 691 | + | (I) INFORM THE CONSUMER O F THE CONSUMER ’S RIGHTS 21 | |
| 692 | + | UNDER THE AGREEMENT ; AND 22 | |
| 693 | + | ||
| 694 | + | (II) FULLY AND CLEARLY DIS CLOSE ALL FEES ASSOCIATED 23 | |
| 695 | + | WITH THE EARNED WAGE ACCESS SERVICES ; 24 | |
| 696 | + | ||
| 697 | + | (6) INFORM A CONSUMER OF ANY MATE RIAL CHANGES TO THE TERMS 25 | |
| 698 | + | AND CONDITIONS OF TH E EARNED WAGE ACCESS SERVICES BEFORE IMPL EMENTING 26 | |
| 699 | + | THOSE CHANGES FOR TH AT CONSUMER ; 27 | |
| 700 | + | ||
| 701 | + | (7) ALLOW A CONSUMER TO CANCEL U SE OF THE PROVIDER ’S 28 | |
| 702 | + | EARNED WAGE ACCESS S ERVICES AT ANY TIME WITHOUT INCURRING A 29 | |
| 703 | + | CANCELLATION FEE IMP OSED BY THE PROVIDER ; 30 | |
| 704 | + | 16 HOUSE BILL 1294 | |
| 705 | + | ||
| 706 | + | ||
| 707 | + | (8) COMPLY WITH ALL APPLI CABLE LOCAL , STATE, AND FEDERAL 1 | |
| 708 | + | PRIVACY AND INFORMAT ION SECURITY LAWS ; 2 | |
| 709 | + | ||
| 710 | + | (9) IF A PROVIDER SOLICITS , CHARGES, OR RECEIVES A TIP , 3 | |
| 711 | + | GRATUITY, OR OTHER DONATION FR OM A CONSUMER : 4 | |
| 712 | + | ||
| 713 | + | (I) SET THE DEFAULT TIP , IF ANY, AT ZERO; 5 | |
| 714 | + | ||
| 715 | + | (II) CLEARLY AND CONSPICUO USLY DISCLOSE TO THE 6 | |
| 716 | + | CONSUMER IMMEDIATELY PRIOR TO EACH TRANSA CTION THAT ANY TIP P AID BY THE 7 | |
| 717 | + | CONSUMER DOES NOT IN URE TO THE DIRECT BE NEFIT OF ANY SPECIFI C EMPLOYEE 8 | |
| 718 | + | OF THE PROVIDER OR A NY OTHER INDIVIDUAL ; 9 | |
| 719 | + | ||
| 720 | + | (III) CLEARLY AND CONSPICUO USLY DISCLOSE TO THE 10 | |
| 721 | + | CONSUMER IMMEDIATELY PRIOR TO EACH TRANSA CTION THAT A TIP, GRATUITY, OR 11 | |
| 722 | + | OTHER DONATION A MOUNT IS OPTIONAL AND VOLU NTARY; AND 12 | |
| 723 | + | ||
| 724 | + | (IV) CLEARLY AND CONSPICUO USLY DISCLOSE IN THE 13 | |
| 725 | + | PROVIDER’S SERVICE CONTRACT W ITH THE CONSUMER THA T: 14 | |
| 726 | + | ||
| 727 | + | 1. TIPS, GRATUITIES, OR OTHER DONATIONS A RE 15 | |
| 728 | + | VOLUNTARY ; AND 16 | |
| 729 | + | ||
| 730 | + | 2. THE OFFERING OF EARNE D WAGE ACCESS SERVIC ES, 17 | |
| 731 | + | INCLUDING THE AMOUNT OF PROCEEDS A CONSUM ER IS ELIGIBLE TO RE QUEST AND 18 | |
| 732 | + | THE FREQUENCY WITH W HICH PROCEEDS ARE PR OVIDED TO A CONSUMER , IS NOT 19 | |
| 733 | + | CONTINGENT ON WHETHE R THE CONSUMER PAYS ANY TIP, GRATUITY, OR OTHER 20 | |
| 734 | + | DONATION OR ON THE S IZE OF THE TIP, GRATUITY, OR OTHER DONATION ; 21 | |
| 735 | + | ||
| 736 | + | (10) PROVIDE PROCEEDS TO A CONSUMER BY ANY MEAN S MUTUALLY 22 | |
| 737 | + | AGREED UPON BY THE C ONSUMER AND THE PROV IDER; AND 23 | |
| 738 | + | ||
| 739 | + | (11) EXCEPT AS PROVIDED IN SUBSECTION (B) OF THIS SECTION , IF 24 | |
| 740 | + | THE PROVIDER WILL SE EK REPAYMENT OF OUTS TANDING PROCEEDS OR PAYMENT 25 | |
| 741 | + | OF FEES OR OTHER AMO UNTS OWED OR INCURRED , INCLUDING VOLUNTARY TIPS, 26 | |
| 742 | + | GRATUITIES, OR OTHER DONATIONS , FROM A CONSUMER ’S ACCOUNT AT A BANK IN 27 | |
| 743 | + | CONNECTION WITH EARN ED WAGE ACCESS SERVI CES COVERED BY THIS SUBTITLE, 28 | |
| 744 | + | INCLUDING BY MEANS O F ELECTRIC FUND TRANSFER: 29 | |
| 745 | + | ||
| 746 | + | (I) COMPLY WITH THE FEDERAL ELECTRONIC FUND 30 | |
| 747 | + | TRANSFER ACT AND REGULATIONS A DOPTED TO IMPLEMENT THE ACT; AND 31 | |
| 751 | 748 | HOUSE BILL 1294 17 | |
| 752 | 749 | ||
| 753 | 750 | ||
| 754 | - | (I) COMPLY WITH T HE FEDERAL ELECTRONIC FUND 1 | |
| 755 | - | TRANSFER ACT AND REGULATIONS A DOPTED TO IMPLEMENT THE ACT; AND 2 | |
| 751 | + | (II) REIMBURSE THE CONSUME R WITHIN 5 BUSINESS DAYS FOR 1 | |
| 752 | + | THE FULL AMOUNT OF A NY OVERDRAFT OR NONS UFFICIENT FUND FEES IMPOSED 2 | |
| 753 | + | ON A CONSUMER BY THE CONSUME R’S BANK THAT WERE CAU SED BY THE PROVIDER 3 | |
| 754 | + | ATTEMPTING TO SEEK R EPAYMENT OF ANY OUTS TANDING PROCEEDS OR PAYMENT 4 | |
| 755 | + | OF FEES, TIPS, GRATUITIES, OR OTHER DONATIONS I N CONNECTION WITH EA RNED 5 | |
| 756 | + | WAGE ACCESS SERVICES COVERED BY THIS SUBT ITLE. 6 | |
| 756 | 757 | ||
| 757 | - | (II) REIMBURSE THE CONSUME R WITHIN 5 BUSINESS DAYS FOR 3 | |
| 758 | - | THE FULL AMOUNT OF A NY OVERDRAFT OR NONS UFFICIENT FUND FEES IMPOSED 4 | |
| 759 | - | ON A CONSUMER BY THE CONSUMER ’S BANK THAT WERE CAUSED BY TH E PROVIDER 5 | |
| 760 | - | ATTEMPTING TO SEEK R EPAYMENT OF ANY OUTS TANDING PROCEEDS OR PAYMENT 6 | |
| 761 | - | OF FEES, TIPS, GRATUITIES, OR OTHER DONATIONS I N CONNECTION WITH EA RNED 7 | |
| 762 | - | WAGE ACCESS SERVICES COVERED BY THIS SUBT ITLE. 8 | |
| 758 | + | (B) SUBSECTION (A)(11) OF THIS SECTION DOES NOT APPLY TO A PROVI DER 7 | |
| 759 | + | SEEKING REPAYMENT OF OUTSTANDING PROCEEDS OR PAYMENT OF FEES O R 8 | |
| 760 | + | OTHER AMOUNTS OWED T HAT WERE RECEIVED OR INCURRED BY A CONSUM ER 9 | |
| 761 | + | THROUGH FRAUDULENT O R OTHER UNLAWFUL MEA NS. 10 | |
| 763 | 762 | ||
| 764 | - | (B) SUBSECTION (A)(11) OF THIS SECTION DOES NOT APP LY TO A PROVIDER 9 | |
| 765 | - | SEEKING REPAYMENT OF OUTSTANDING PROCEEDS OR PAYMENT OF FEES O R 10 | |
| 766 | - | OTHER AMOUNTS OWED T HAT WERE RECEIVED OR INCURRED BY A CONSUM ER 11 | |
| 767 | - | THROUGH FRAUDULENT O R OTHER UNLAWFUL MEA NS. 12 | |
| 763 | + | 12–1504. 11 | |
| 768 | 764 | ||
| 769 | - | 12 | |
| 765 | + | A PROVIDER OF EARNED WAGE AC CESS MAY NOT: 12 | |
| 770 | 766 | ||
| 771 | - | A PROVIDER OF EARNED W AGE ACCESS MAY NOT: 14 | |
| 767 | + | (1) SHARE WITH AN EMPLOYE R ANY FEES, TIPS, OR OTHER CHARGES 13 | |
| 768 | + | RECEIVED FROM A CONS UMER FOR EARNED WAGE ACCESS; 14 | |
| 772 | 769 | ||
| 773 | - | (1) SHARE WITH AN EMPLOYE R ANY FEES, TIPS, OR OTHER CHARGES 15 | |
| 774 | - | RECEIVED FROM A CONS UMER FOR EARNED WAGE ACCESS; 16 | |
| 770 | + | (2) CONDITION A CONSUMER ’S ABILITY TO OBTAIN EARNED WAGE 15 | |
| 771 | + | ACCESS ON THE CONSUM ER’S ABILITY OR WILLING NESS TO PAY THE PROVIDER A 16 | |
| 772 | + | TIP; 17 | |
| 775 | 773 | ||
| 776 | - | (2) CONDITION A CONSUMER ’S ABILITY TO OBTAIN EARNED WAGE 17 | |
| 777 | - | ACCESS ON THE CONSUM ER’S ABILITY OR WILLING NESS TO PAY THE PROV IDER A 18 | |
| 778 | - | TIP; 19 | |
| 774 | + | (3) CHARGE A CONSUMER A LATE FEE, INTEREST, OR OTHER 18 | |
| 775 | + | PENALTY FOR FAILURE TO PAY ANY PROCEEDS , FEES, OR TIPS; 19 | |
| 779 | 776 | ||
| 780 | - | ( | |
| 781 | - | ||
| 777 | + | (4) REPORT ANY INFORMATIO N ABOUT A CONSUMER ’S FAILURE TO 20 | |
| 778 | + | PAY ANY PROCEEDS , FEES, OR TIPS TO ANY CONSU MER REPORTING A GENCY; 21 | |
| 782 | 779 | ||
| 783 | - | ( | |
| 784 | - | ||
| 780 | + | (5) OBTAIN A CONSUMER ’S CREDIT REPORT AS A METHOD OF 22 | |
| 781 | + | QUALIFYING THE CONSU MER FOR EARNED WAGE ACCESS; 23 | |
| 785 | 782 | ||
| 786 | - | (5) OBTAIN A CO NSUMER’S CREDIT REPORT AS A METHOD OF 24 | |
| 787 | - | QUALIFYING THE CONSU MER FOR EARNED WAGE ACCESS; 25 | |
| 783 | + | (6) RECEIVE INTEREST FROM A CONSUMER ; OR 24 | |
| 788 | 784 | ||
| 789 | - | (6) RECEIVE INTEREST FROM A CONSUMER ; OR 26 | |
| 785 | + | (7) COMPEL OR ATTEMPT TO COMPEL PAYMENT BY A CONSUMER OF 25 | |
| 786 | + | ANY PROCEEDS , FEES, TIPS, GRATUITIES, OR OTHER DONATIONS THRO UGH: 26 | |
| 790 | 787 | ||
| 791 | - | (7) COMPEL OR ATTEMPT TO COMPEL PAYMENT BY A CONSUMER OF 27 | |
| 792 | - | ANY PROCEEDS , FEES, TIPS, GRATUITIES, OR OTHER DONATIONS T HROUGH: 28 | |
| 788 | + | (I) A CIVIL ACTION AGAINST THE CONSUMER ; 27 | |
| 793 | 789 | ||
| 794 | - | (I) A CIVIL ACTION AGAINST THE CONSUMER ; 29 | |
| 795 | - | ||
| 796 | - | (II) THE USE OF A THIRD PA RTY TO PURSUE COLLEC TION FROM 30 | |
| 797 | - | THE CONSUMER ON THE PROVIDER’S BEHALF; OR 31 18 HOUSE BILL 1294 | |
| 798 | - | ||
| 790 | + | (II) THE USE OF A THIRD PA RTY TO PURSUE COLLEC TION FROM 28 | |
| 791 | + | THE CONSUMER ON THE PROVIDER’S BEHALF; OR 29 | |
| 792 | + | 18 HOUSE BILL 1294 | |
| 799 | 793 | ||
| 800 | 794 | ||
| 801 | 795 | (III) THE SALE OR ASSIGNMEN T OF OUTSTANDING AMO UNTS TO 1 | |
| 802 | 796 | A THIRD–PARTY COLLECTOR OR DEBT BUYER FOR CO LLECTION FROM THE 2 | |
| 803 | 797 | CONSUMER . 3 | |
| 804 | 798 | ||
| 805 | 799 | 12–1505. 4 | |
| 806 | 800 | ||
| 807 | - | A PROVIDER OF EARNED W AGE ACCESS MAY CHARG E A FEE FOR DELIVERY OR 5 | |
| 808 | - | EXPEDITED DELIVERY O F EARNED WAGE ACCESS TO A CONSUMER NOT EXCEEDING : 6 | |
| 801 | + | A PROVIDER OF EARNED W AGE ACCESS MAY CHARG E A FEE NOT EXCEEDIN G: 5 | |
| 809 | 802 | ||
| 810 | - | (1) $5.00 FOR ANY ADVANCE OF P ROCEEDS EQUAL TO OR LESS THAN | |
| 811 | - | $75.00; OR | |
| 803 | + | (1) $5.00 FOR ANY ADVANCE OF P ROCEEDS EQUAL TO OR LESS THAN 6 | |
| 804 | + | $75.00; OR 7 | |
| 812 | 805 | ||
| 813 | - | (2) $7.50 FOR ANY ADVANCE OF P ROCEEDS GREATER THAN $75.00. | |
| 806 | + | (2) $7.50 FOR ANY ADVANCE OF P ROCEEDS GREATER THAN $75.00. 8 | |
| 814 | 807 | ||
| 815 | - | 12–1506. | |
| 808 | + | 12–1506. 9 | |
| 816 | 809 | ||
| 817 | - | ON OR BEFORE JULY 1 EACH YEAR, BEGINNING IN 2026, A PROVIDER OF | |
| 818 | - | EARNED WAGE ACCESS S HALL SUBMIT A REPORT TO THE OFFICE OF FINANCIAL | |
| 819 | - | REGULATION THAT INCLU DES ANY INFORMATION CONSIDERED NECESSARY BY THE | |
| 820 | - | COMMISSIONER , AS PRESCRIBED BY REG ULATION, TO ASSESS THE SIZE A ND STATUS | |
| 821 | - | OF THE EARNED WAGE | |
| 810 | + | ON OR BEFORE JULY 1 EACH YEAR, BEGINNING IN 2026, A PROVIDER OF 10 | |
| 811 | + | EARNED WAGE ACCESS S HALL SUBMIT A REPORT TO THE OFFICE OF FINANCIAL 11 | |
| 812 | + | REGULATION THAT INCLU DES ANY INFORMATION CONSIDERED NECESSARY BY THE 12 | |
| 813 | + | COMMISSIONER , AS PRESCRIBED BY REG ULATION, TO ASSESS THE SIZE A ND STATUS 13 | |
| 814 | + | OF THE EARNED WAGE ACCESS M ARKET IN THE STATE. 14 | |
| 822 | 815 | ||
| 823 | - | 12–1507. | |
| 816 | + | 12–1507. 15 | |
| 824 | 817 | ||
| 825 | - | THE COMMISSIONER MAY ADOP T REGULATIONS TO CAR RY OUT THIS | |
| 826 | - | SUBTITLE. | |
| 818 | + | THE COMMISSIONER MAY ADOP T REGULATIONS TO CAR RY OUT THIS 16 | |
| 819 | + | SUBTITLE. 17 | |
| 827 | 820 | ||
| 828 | - | SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 19 | |
| 829 | - | October 1, 2025. 20 | |
| 830 | - | ||
| 831 | - | ||
| 832 | - | ||
| 833 | - | ||
| 834 | - | Approved: | |
| 835 | - | ________________________________________________________________________________ | |
| 836 | - | Governor. | |
| 837 | - | ________________________________________________________________________________ | |
| 838 | - | Speaker of the House of Delegates. | |
| 839 | - | ________________________________________________________________________________ | |
| 840 | - | President of the Senate. | |
| 821 | + | SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 18 | |
| 822 | + | October 1, 2025. 19 |