The bill seeks to regulate earned wage access services in Ohio by amending section 1321.21 and enacting new sections 1320.01 through 1320.10 of the Revised Code. It introduces key definitions such as "earned but unpaid income," "consumer-directed wage access services," and "provider." A significant requirement is that no entity can offer these services without a valid certificate of registration, which necessitates compliance with rules set by the superintendent of financial institutions, including background checks for key officers and payment of specific fees. The bill also establishes criteria for maintaining this registration, including financial responsibility, minimum net worth, and annual renewal applications.

Additionally, the bill outlines operational guidelines for registrants, such as the prohibition of changing business locations without a new application and fee, and the requirement to notify the division of any name changes. It mandates consumer protections, including the development of complaint procedures, fee disclosures, and the ability for consumers to cancel services without penalties. Importantly, it clarifies that these services are not classified as loans or credit, thus exempting them from certain regulations. The bill also creates a consumer finance fund for administrative costs and financial literacy education, while repealing the existing section 1321.21, indicating a comprehensive restructuring of financial regulations in this area.

Statutes affected:
As Introduced: 1321.21