An Act relative to financial technology services
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Overview
This bill requires financial technology companies that offer ‘earned wage access’ services – allowing employees to access their wages before payday – to be licensed by the Division of Banks in Massachusetts. The goal is to provide greater consumer protection and oversight for these rapidly growing financial services. The bill also includes a study order to examine related issues.
Key provisions
- Requires earned wage access providers to obtain a license from the Division of Banks.
- Establishes standards and regulations for these providers.
- Mandates reporting requirements for licensed companies.
- Includes a study order to examine the impact of earned wage access services.
- Authorizes the Division of Banks to investigate and enforce compliance.
Who is affected
- Employees who utilize earned wage access services
- Financial technology companies offering earned wage access
- The Division of Banks
Notable changes
- Introduces a licensing framework for earned wage access providers, which currently lacks formal regulation.
- Creates a mechanism for the state to oversee and regulate this emerging financial sector.
Bill text
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Sponsors
Official sponsors from legislative records.
2 on record
Primary sponsor
Cosponsor
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