IN: Testimony in Support of IN HB 1125

TO: Indiana House Financial Institutions Committee
FROM: Ashley Urisman, Director, State Government Affairs, American Fintech Council (AFC)
DATE: January 28, 2025
SUBJECT: HB 1125

Position: Support.

Testimony:

Good Morning. My name is Ashley Urisman, and I am the Director of State Government Affairs for the American Fintech Council (AFC). Chair Teshka, Vice-Chair Pierce, Ranking Member Andrade, and members of the Financial Institutions Committee, thank you for allowing me to testify in support of House Bill 1125 (HB 1125).

AFC is the premier trade association representing the leading financial technology (Fintech) companies, including the largest providers of Earned Wage Access (EWA) services. For those unfamiliar, EWA is an innovative financial tool that empowers workers to access their wages in a way that best fits their lifestyle, rather than keeping them tethered to arbitrary payroll cycles. Users can opt to access EWA services offered through their employers, as stand-alone products, or as part of a subscription.

Our mission at AFC is to promote a transparent, inclusive, and customer-centric financial system. We support responsible innovation in financial services and encourage sound public policy. As such, we are grateful to Chair Teshka and Representatives Lehman and Miller for sponsoring this bill to shape a regulatory framework for responsible EWA companies in Indiana.

To date, more than 300,000 Hoosiers have used EWA services and more than 3,000 employers in the state offer EWA as a benefit to their workers. HB 1125 ensures that your constituents can continue to reap the benefits of EWA, while subject to robust consumer protections in line with AFC standards. These include the availability of a no-cost option for all EWA users; the disclosure of fees in a clear and transparent manner; and the ability for users to cancel their service at any time. All EWA transactions regulated by this bill are also non-recourse and users’ credit is not impacted if they fail to repay. In closing, I applaud the Indiana House of Representatives for taking up this issue. Thank you again for the opportunity to offer my support for this HB 1125. I am happy to answer any questions you may have.

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