This bill establishes regulatory requirements for earned income access services in New Jersey, aimed at protecting consumers who utilize these services. It defines key terms such as "earned but unpaid income," "earned income access service provider," and "obligor," and mandates that providers verify a consumer's earned income before delivering funds. The bill sets a cap on fees that providers can charge, requires them to allow consumers to cancel participation without incurring charges, and prohibits the requirement for consumers to open accounts at specific banks or the use of credit reports for eligibility determination. Additionally, it emphasizes consumer rights, ensuring that consumers can receive their full wages without discount if they choose to wait for their regular payment.

Furthermore, the bill mandates that earned income access service providers obtain a license from the Department of Banking and Insurance, which must be granted or denied within 120 days of a completed application. It outlines the application process, including background checks and disclosures of any criminal history. The bill also includes penalties for violations, with fines up to $5,000 for first offenses and $15,000 for subsequent violations. Notably, it amends existing definitions by replacing "Nationwide Mortgage Licensing System and Registry" with "Nationwide Multistate Licensing System" and introduces new provisions for compliance with federal laws.

Statutes affected:
Introduced: 17:1C-34