The "Earned Wage Access Services Act" is a proposed bill in Michigan that seeks to regulate earned wage access services by requiring providers to obtain a license from the Department of Insurance and Financial Services. The bill defines key terms such as "consumer," "earned but unpaid income," and "licensee," and mandates that applicants provide detailed information, including business locations and executive officers, along with an annual license fee based on business volume. Licensees are required to maintain records, comply with privacy laws, and establish consumer complaint procedures.

Consumer protection is a significant focus of the legislation, which mandates clear disclosures of fees and allows consumers to cancel services without incurring charges. The bill prohibits licensees from sharing fees with employers, using credit scores for eligibility, and imposing excessive fees. It also outlines penalties for non-compliance, including administrative fines and the authority for the director to issue cease and desist orders. Additionally, individuals found guilty of fraud may be barred from serving as employees or executives of licensees. Existing providers can continue operations if they apply for a license within six months of the bill's enactment and comply with the new requirements during the application process.