This bill establishes a regulatory framework for earned income access service providers in New Jersey, defining these services as the delivery of funds representing earned but unpaid income to consumers, which are not to be classified as loans. It mandates that providers enter into contractual arrangements with employers (obligors) to verify consumers' earned income and deliver funds before scheduled payment dates. The bill outlines conditions for obligors regarding the sharing of consumer information and specifies that if providers charge interest or finance charges, they must adhere to civil and criminal usury laws. Services that do not comply with the bill's requirements will be treated as loans, subject to various legal regulations.

To operate legally, providers must obtain a license from the Department of Banking and Insurance, which will assess applications based on the applicant's organization, expertise, and financial integrity. The department is required to act on license applications within 120 days and has the authority to suspend or revoke licenses under certain circumstances, such as fraudulent activity or consumer complaints. The bill also includes penalties for violations, allows the department to establish contracts with the Nationwide Multistate Licensing System for record-keeping, and grants investigative powers over licensees. Notably, it replaces the term "Nationwide Mortgage Licensing System and Registry" with "Nationwide Multistate Licensing System" and introduces new definitions and compliance requirements for service providers.

Statutes affected:
Introduced: 17:1C-34