Bill Text: TX SB3000 | 2025-2026 | 89th Legislature | Introduced
Bill Title: Relating to consumer protections for earned wage access products.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced - Dead) 2025-04-07 - Referred to Business & Commerce [SB3000 Detail]
Download: Texas-2025-SB3000-Introduced.html
| 89R2929 MLH-F | ||
| By: Menéndez | S.B. No. 3000 | |
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| relating to consumer protections for earned wage access products. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Section 341.001, Finance Code, is amended by | ||
| adding Subdivision (6-a) and amending Subdivision (9) to read as | ||
| follows: | ||
| (6-a) "Earned wage advance" means the provision of a | ||
| cash advance to a borrower by a provider in an amount that is based, | ||
| by estimate or otherwise, on the wages or other income that the | ||
| borrower has accrued but has not yet been paid, where: | ||
| (A) the advance is to be repaid to the provider | ||
| through: | ||
| (i) wage assignment; | ||
| (ii) one or more payroll deductions; | ||
| (iii) preauthorized account debits; or | ||
| (iv) another automated means; and | ||
| (B) the provider charges, contracts for, or | ||
| receives from the borrower, directly or indirectly, one or more | ||
| charges, fees, or other amounts, including voluntary or optional | ||
| payments associated with the advance or the earned wage advance | ||
| program. | ||
| (9) "Loan" has the meaning assigned by Section 301.002 | ||
| and includes a sale-leaseback transaction, [ |
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| presentment transaction, and an earned wage advance. | ||
| SECTION 2. Chapter 342, Finance Code, is amended by adding | ||
| Subchapter N to read as follows: | ||
| SUBCHAPTER N. EARNED WAGE ADVANCES | ||
| Sec. 342.701. DEFINITIONS. In this subchapter: | ||
| (1) "Cash advance" or "advance" means proceeds | ||
| received by a consumer from an earned wage advance provider. | ||
| (2) "Consumer" means an individual who resides in this | ||
| state. | ||
| (3) "Earned wage advance provider" or "provider" means | ||
| a person who is in the business of offering and providing earned | ||
| wage advance services to consumers. | ||
| Sec. 342.702. CONSUMER ASSESSMENT. An earned wage advance | ||
| provider shall, before making an advance connected to an earned | ||
| wage advance, assess a consumer's ability to repay: | ||
| (1) the advance in cash in the time and by the means | ||
| provided in the loan contract; and | ||
| (2) any other obligations owed by the consumer that | ||
| are known to the provider. | ||
| Sec. 342.703. REIMBURSEMENT. If the provider causes the | ||
| consumer to incur an overdraft fee because the provider attempts to | ||
| collect payment before the consumer's paycheck or other income is | ||
| deposited into the account, the provider shall reimburse the | ||
| consumer for all fees incurred not later than 48 hours after | ||
| receiving notice of the overdraft through any existing customer | ||
| service methods, including telephone and electronic means. | ||
| Sec. 342.704. PROHIBITIONS. (a) An earned wage advance | ||
| provider may not, in connection with providing earned wage advance | ||
| services to consumers: | ||
| (1) charge, contract for, or receive in a 30-day | ||
| period more than: | ||
| (A) 10 percent of the amount of any advances made | ||
| in that period; or | ||
| (B) $10 in total charges, fees, or other amounts; | ||
| (2) provide more than one advance on the same day to | ||
| the same consumer; | ||
| (3) compel or attempt to compel payment by a consumer | ||
| of a cash advance or other outstanding amounts associated with an | ||
| earned wage advance by: | ||
| (A) filing a suit against the consumer; | ||
| (B) using a third party to pursue collection of | ||
| payment from the consumer on the provider's behalf; or | ||
| (C) selling or assigning the outstanding amounts | ||
| to a third-party collector or debt buyer for purposes of collection | ||
| from the consumer; | ||
| (4) charge a consumer a late fee, interest, or other | ||
| penalty for failure to repay a cash advance; or | ||
| (5) report any information regarding the consumer's | ||
| inability to repay a cash advance to a consumer credit reporting | ||
| agency. | ||
| (b) For purposes of Subsection (a)(1)(B), charges, fees, or | ||
| other amounts include the sum of any: | ||
| (1) voluntary or optional charges; and | ||
| (2) required charges associated with the earned wage | ||
| advance. | ||
| Sec. 342.705. RULES. The finance commission may adopt | ||
| rules as necessary to implement this subchapter. | ||
| Sec. 342.706. DATA COLLECTION. The finance commission may | ||
| require providers to submit information considered beneficial to | ||
| public policy and consumer protection in this state to the | ||
| commission. | ||
| SECTION 3. This Act takes effect September 1, 2025. | ||
