The bill introduces a licensing requirement for all businesses offering earned wage access services, ensuring they adhere to established policies and consumer protection measures. It prohibits providers from imposing excessive fees, collecting certain types of information like credit scores, or engaging in potentially predatory practices such as charging late fees. Additionally, providers must offer at least one no-cost option for accessing funds to enhance consumer flexibility and choice.
Summary
HF2874 aims to regulate earned wage access services in Minnesota, establishing a framework under which providers must operate. The bill defines key terms related to earned wage access services, including 'consumer' and 'provider', and outlines the responsibilities and prohibitions for service providers. This legislation is designed to provide consumers with timely access to earned but unpaid wages, potentially alleviating financial stress that results from waiting for traditional pay periods.
Contention
One area of contention regarding HF2874 is the balance between ensuring consumer protection and facilitating access to earned wages. Advocates for the bill argue it is crucial to eliminate predatory lending practices that could arise in the realm of advance wage payments. However, some providers express concern that stringent regulations could overly limit their ability to operate flexibly, potentially leading to reduced access for consumers who need these services urgently. Additionally, defining the parameters for what constitutes 'earned but unpaid income' may provoke further legislative debate.
Debt collection, garnishment, medical debt, and consumer finance various governing provisions modified; debtor protections provided; statutory forms modified; and statutory form review required.
Energy; biennial budget established for Department of Commerce, Public Utilities Commission, and energy, climate, and clean energy activities; energy and utility regulation provisions established and modified; enhanced transportation electrification provided; various clean and renewable energy grant programs established; reports required; and money appropriated.
Prohibiting postsecondary educational institutions from taking certain actions regarding admission applicants, applicants for employment and faculty concerning diversity, equity or inclusion, exceptions, providing for civil remedies and penalties, submitting a report to the legislature and posting information on the board of regents website.