The "Texas Earned Wage Access Services Act" introduces a new Chapter 398 to the Finance Code, establishing regulations for earned wage access services in Texas. The bill defines key terms such as "consumer," "earned but unpaid income," and "earned wage access services provider." It requires providers to comply with specific obligations, including clear disclosures about consumer rights, fees, and service details. Providers must also inform consumers of any material changes to the information provided and offer options for accessing proceeds at no cost. Additionally, the bill amends existing sections of the Finance Code to subject earned wage access services to administrative penalties for violations, allowing the commissioner to impose penalties on non-compliant providers.

The legislation further mandates that providers make a copy of the completed contract available to consumers upon acknowledgment of receipt and outlines prohibitions against practices such as sharing fees with employers, accepting credit card payments, charging late fees, and reporting non-repayment to credit agencies. It also prohibits deceptive practices and specifies acceptable methods for pursuing repayment in cases of fraud or breach of contract. The provisions of this bill will apply only to contracts for earned wage access services entered into on or after its effective date of September 1, 2025, aiming to enhance consumer protection and transparency in the industry.

Statutes affected:
Introduced: Finance Code 14.251 (Finance Code 14)