UT: Testimony in Support of HB UT 0297

TO: Utah House Business, Labor and Commerce Standing Committee
FROM: Phil Goldfeder, CEO, American Fintech Council (AFC)
DATE: February 18, 2025
SUBJECT: House Bill 0297

Position: Support.

Testimony:

Thank you Chair Maloy, Vice-Chair Kyle, and members of the House Business, Labor and Commerce Standing Committee for providing me the opportunity to testify before you in support of House Bill 0279 (HB 0279). My name is Ashley Urisman, I am director of State Government Affairs for the American Fintech Council (AFC).

AFC is the premier trade association representing the largest financial technology (Fintech) companies, including the biggest providers and largest number of Earned Wage Access (EWA) companies. Our mission is to promote a transparent, inclusive, and customer-centric financial system by supporting responsible innovation in financial services and encouraging sound public policy.

EWA is not a loan and should not be regulated as such. As a distinct financial product, EWA must be governed by distinct regulations. This bill helps shape a regulatory framework for companies to safely and responsibly offer EWA in Utah. 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 through their employers, as stand-alone products, or as part of a subscription.

Utah Workers are already reaping the benefits of EWA services. AFC member companies providing EWA have served more than 160,000 users and more than 700 employers across Utah offer EWA as a benefit. To ensure that EWA providers safely and effectively serve consumers, AFC has established clear standards on what constitutes responsible EWA. Our standards require that a voluntary no-cost option be made available; strong fee disclosures represented in a clear and transparent manner; no underwriting or credit checks 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 0297 reflect those standards, and we thank you for your nuanced and thoughtful approach to regulating this industry.

Establishing the regulatory framework enumerated in HB 0297 will provide a critical financial choice for Utah workers and allow responsible EWA services to flourish in this state. This bill will help workers access their pay by giving EWA providers a clear and functional regulatory path that recognizes the nuances of the service.

In closing, I applaud the Utah legislature for taking up this issue in a timely manner and seeking a pragmatic solution to regulation. I thank you again for the opportunity to offer my support for this bill and am happy to answer any questions you may have.

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