An Act relative to financial technology services
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Overview
This bill seeks to regulate earned wage access services, which allow workers to receive their paychecks early, by requiring these providers to be licensed by the Division of Banks in Massachusetts. The goal is to ensure consumer protection and financial stability within the rapidly growing financial technology sector. The bill establishes a framework for overseeing these services and mitigating potential risks to both workers and financial institutions. It aims to bring greater transparency and accountability to this emerging area of financial services.
Key provisions
- Requires earned wage access service providers to obtain a license from the Division of Banks.
- Establishes standards and regulations for these providers.
- The Division of Banks will oversee the licensing and operation of these services.
- The bill is intended to protect consumers and ensure responsible lending practices.
- It addresses the increasing use of earned wage access services in Massachusetts.
Who is affected
- Earned wage access service providers
- Workers who utilize earned wage access services
- The Division of Banks
- Consumers in Massachusetts
Notable changes
- Currently, earned wage access services operate with limited regulatory oversight in Massachusetts.
- This bill introduces a licensing requirement to ensure a level of consumer protection.
Bill text
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Sponsors
Official sponsors from legislative records.
2 on record
Primary sponsor
Cosponsor
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