This bill establishes a regulatory framework for earned income access services in New Jersey, defining key terms such as "consumer," "earned but unpaid income," and "earned income access service provider." It mandates that providers must enter into contractual arrangements with employers (obligors) to deliver earned but unpaid income to consumers before their scheduled payment dates. The bill prohibits obligors from sharing consumer information without consent and outlines conditions under which fees can be charged. Additionally, if providers charge interest or finance charges, they must comply with existing usury laws, ensuring that any non-compliance will classify the services as loans.

To operate legally, providers must obtain a license from the Department of Banking and Insurance, which includes a thorough application process and background checks for key personnel. The bill specifies conditions for license denial or revocation, such as fraudulent activity or consumer complaints, and allows the department to collaborate with the Nationwide Multistate Licensing System and Registry for record-keeping. It also includes penalties for violations, with fines up to $5,000 for first offenses and $15,000 for subsequent violations, while empowering the department to investigate licensees and access their records. Notably, the bill amends existing definitions and provisions, replacing "Nationwide Mortgage Licensing System and Registry" with "Nationwide Multistate Licensing System."

Statutes affected:
Introduced: 17:1C-34