Signed by Governor Mike Braun

Vote Smart's Synopsis:

Vote to adopt a conference report and pass a bill that requires Earned Wage Access services to obtain a license and submit regular reports in Indiana.

Highlights:

• Requires Earned Wage Access (EWA) services to obtain a license and submit regular reports in Indiana, and includes the following key requirements and prohibitions (Sec. 1-6):

• Disclosures: Providers must fully disclose all fees associated with EWA services and inform consumers of their rights before agreeing with a consumer;

• No-Cost Option: Providers must offer at least one option to obtain EWA proceeds at no cost to the consumer and clearly explain how to elect this option;

• Voluntary Tips: Providers may solicit, charge, or receive tips, but in doing so they are required to:

• Disclose that tips are voluntary and that EWA services are not in any way contingent on the consumer paying a tip;

• Set any default tip at $0; 

• Do not increase fees because the consumer did not provide a tip; and

• Abstain from representing that tips provide a benefit to any specific individual.

• Expedite Fees: Providers may charge a fee for expedited delivery of EWA proceeds, but must cap fees at specified amounts. Indiana caps fees at the greater of $5 or 5% of the amount of the proceeds, while Maryland caps fees at $5 for proceeds up to $75 and $7.50 for proceeds greater than $75;

• Privacy and Security Compliance: Providers must comply with all applicable local, state, and federal privacy and information security laws;

• Fee Reimbursement: Providers must reimburse consumers for any overdraft or nonsufficient funds fees caused by the provider in certain instances;

• Fee and Tip Sharing: Providers cannot share with an employer any portion of the fees or tips received from consumers;

• Credit Reporting: Providers cannot obtain a consumer’s credit report for purposes of determining eligibility for or the terms of EWA services. In addition, providers cannot report a consumer’s failure to repay EWA proceeds to credit reporting agencies;

• Debt Collection: Providers cannot engage in third-party debt collection, litigation, or debt sales to collect EWA proceeds, fees, or tips that a consumer has not repaid;

• Charging Penalties and Interest: Providers cannot charge late fees, interest, or any other penalties for a failure to pay outstanding proceeds, fees, or tips; and

• Exemptions: Certain entities, such as banks, credit unions, savings associations, and other financial institutions, are not subject to either Indiana’s or Maryland’s EWA licensing requirements. In addition, both states’ laws explain that EWA services that are provided in compliance with each respective law do not constitute money transmission and are not subject to certain other laws, such as those governing payroll deductions.

• Amends and clarifies that EWA services are not loans and creates comprehensive licensing regimes that require EWA providers to obtain licenses and submit regular reports regarding their products (Sec. 1-6).

• Specifies that the provisions of this bill shall take effect January 1, 2026 (Sec. 7).

Full Bill Text

Vote Smart's Synopsis:

Vote to adopt a conference report and pass a bill that requires Earned Wage Access services to obtain a license and submit regular reports in Indiana.

Highlights:

• Requires Earned Wage Access (EWA) services to obtain a license and submit regular reports in Indiana, and includes the following key requirements and prohibitions (Sec. 1-6):

• Disclosures: Providers must fully disclose all fees associated with EWA services and inform consumers of their rights before agreeing with a consumer;

• No-Cost Option: Providers must offer at least one option to obtain EWA proceeds at no cost to the consumer and clearly explain how to elect this option;

• Voluntary Tips: Providers may solicit, charge, or receive tips, but in doing so they are required to:

• Disclose that tips are voluntary and that EWA services are not in any way contingent on the consumer paying a tip;

• Set any default tip at $0; 

• Do not increase fees because the consumer did not provide a tip; and

• Abstain from representing that tips provide a benefit to any specific individual.

• Expedite Fees: Providers may charge a fee for expedited delivery of EWA proceeds, but must cap fees at specified amounts. Indiana caps fees at the greater of $5 or 5% of the amount of the proceeds, while Maryland caps fees at $5 for proceeds up to $75 and $7.50 for proceeds greater than $75;

• Privacy and Security Compliance: Providers must comply with all applicable local, state, and federal privacy and information security laws;

• Fee Reimbursement: Providers must reimburse consumers for any overdraft or nonsufficient funds fees caused by the provider in certain instances;

• Fee and Tip Sharing: Providers cannot share with an employer any portion of the fees or tips received from consumers;

• Credit Reporting: Providers cannot obtain a consumer’s credit report for purposes of determining eligibility for or the terms of EWA services. In addition, providers cannot report a consumer’s failure to repay EWA proceeds to credit reporting agencies;

• Debt Collection: Providers cannot engage in third-party debt collection, litigation, or debt sales to collect EWA proceeds, fees, or tips that a consumer has not repaid;

• Charging Penalties and Interest: Providers cannot charge late fees, interest, or any other penalties for a failure to pay outstanding proceeds, fees, or tips; and

• Exemptions: Certain entities, such as banks, credit unions, savings associations, and other financial institutions, are not subject to either Indiana’s or Maryland’s EWA licensing requirements. In addition, both states’ laws explain that EWA services that are provided in compliance with each respective law do not constitute money transmission and are not subject to certain other laws, such as those governing payroll deductions.

• Amends and clarifies that EWA services are not loans and creates comprehensive licensing regimes that require EWA providers to obtain licenses and submit regular reports regarding their products (Sec. 1-6).

• Specifies that the provisions of this bill shall take effect January 1, 2026 (Sec. 7).

Full Bill Text