HB1517

House Bill 1517 proposes the establishment of the 'Earned Wage Access Services Act' in Arkansas. The bill provides a regulatory framework for companies that allow employees to access their earned but unpaid wages before their scheduled pay date. It defines earned wage access services and outlines specific compliance requirements for providers, such as clear disclosure of fees and the necessity of offering at least one no-cost option for accessing wages. The bill prohibits providers from engaging in certain practices, including charging late fees or interest, using debt collection agencies, or pursuing legal action against consumers for unpaid proceeds. Additionally, the legislation mandates that providers must reimburse consumers for any overdraft fees caused by incorrect or untimely payment requests. Providers are also prohibited from sharing proceeds with employers or using credit reports to determine service eligibility. The bill explicitly excludes traditional banking institutions, credit unions, and savings and loans from these regulations.