Consumer Protection; platforms providing services allowing employees to access earned income prior to paycheck not considered a lender or debt collector; standards on platforms imposed

SB 281 defines and regulates "earned wage access services," which allow employees to access their earned but unpaid income before their scheduled payday. The bill clarifies that platforms providing these services are not considered lenders, money transmitters, or debt collectors, provided they meet specific consumer protection standards. These standards require providers to disclose all fees, offer a no-cost option for accessing funds, allow consumers to cancel services, and reimburse consumers for overdraft fees caused by the provider. It also prohibits providers from using civil suits to compel repayment of outstanding funds or fees.