VT: Testimony in Support of VT HB 99

TO: Vermont House Committee on Commerce and Economic Development
FROM: Hayden Cole, Director, Federal Government Affairs, American Fintech Council (AFC)
DATE: January 30, 2025
SUBJECT: HB 99

Position: Support.

Testimony:

Good Morning.

My name is Hayden Cole, and I am the Director of Federal Government Affairs for the American Fintech Council (AFC). Chair Marcotte, Vice-Chair Graning, Ranking Member White, and members of the Commerce and Economic Development Committee, thank you for allowing me to testify in support of House Bill 99 (HB 99).

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 Marcotte and Representatives Bosch, Carris-Duncan, Cooper, Duke, Graning, Micklus, Olson, Priestley, and White for sponsoring this bill to shape a regulatory framework for responsible EWA companies in Vermont.

To date, more than 15,000 Vermonters have used EWA. HB 99 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 Vermont House of Representatives for taking up this issue. Thank you again for the opportunity to offer my support for this HB 99. I am happy to answer any questions you may have.

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