The "Texas Earned Wage Access Services Act" establishes a regulatory framework for earned wage access services in Texas by adding Chapter 355 to the Finance Code. This chapter defines key terms such as "consumer," "earned but unpaid income," and "earned wage access services provider." It requires providers to obtain occupational registration and adhere to specific consumer protection standards, including clear disclosures about fees and consumer rights. Providers must also offer at least one no-cost option for accessing earned wages, handle consumer inquiries appropriately, and comply with financial reporting obligations.

The bill further mandates that providers reimburse consumers for overdraft or non-sufficient funds fees unless incurred through fraud, and it prohibits deceptive practices, such as misleading consumers about tips or donations. A registration process is outlined, requiring providers to maintain a surety bond of $200,000 and submit annual reports to the commissioner. Existing providers must register by January 1, 2026, and the new regulations will apply only to contracts entered into after the bill's effective date of September 1, 2025. Overall, the legislation aims to enhance consumer protection and ensure fair practices within the earned wage access industry.

Statutes affected:
Introduced: Finance Code 14.251 (Finance Code 14)
House Committee Report: Government Code 411.095 (Government Code 411, Finance Code 14)