UT: AFC Letter to Governor of Utah, Spencer Cox, Urging to sign HB 279

The Honorable Spencer Cox
Governor of Utah
350 North State Street
Suite 200
Salt Lake City, UT 84114

Dear Governor Cox:

We are writing on behalf of Earned Wage Access (EWA) providers to urge you to sign House Bill 0279 (HB 0279), the Earned Wage Access Services Act, when it arrives on your desk.

EWA is an innovative fintech product that allows users to access the wages they have already earned in a pay period ahead of their employers’ scheduled payday. This service empowers users to access their money as best suits their needs, rather than keeping them tethered to arbitrary payroll cycles. HB 0279 is an important law governing a new and distinct financial product with distinct regulations.

By a conservative estimate, EWA providers have served more than 160,000 workers in Utah, and more than 700 employers across your state offer EWA as a benefit to their employees. HB 0279 codifies clear standards on what constitutes a responsible EWA service, in line with industry best practices. These standards include:

● A voluntary no-cost option is available for all users;

● Fee disclosures are represented to users in a clear and transparent manner;

● No underwriting or credit checks are required to access the service; and

● The ability for users to cancel the EWA service at any time, meaning it does not have to be repaid.

The provisions of HB 0279 reflect these standards, and the bill requires providers of EWA to register with the Utah Department of Commerce’s Division of Consumer Protection (Division). This registration requirement further protects constituents by giving the Division oversight of EWA providers, keeping bad actors out of your state and creating important consumer protections.

On behalf of the fintech industry and responsible EWA providers, we ask that you sign HB 0279 when it reaches your desk.

Sincerely,

American Fintech Council
Ashley Urisman, Director of State Government Affairs

Brigit
Tara Rider, Vice President, Policy and Government Relations

Cleo
Colin Jones, General Counsel

Cross River Bank
Joe Horvath, Government Affairs Director

DailyPay
Ryan Naples, Director, Public Policy

EarnIn
Zach Drucker, Public Affairs Specialist

MoneyLion
RaShawn Mitchell, Head of Government Affairs

Payactiv
Molly Jones, Vice President, Head of Public Policy

Wagestream
Kevin Lefton, General Counsel

ZayZoon
Garth McAdam, General Counsel