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MA S725
Bill
Status
Introduced
2/27/2025
Primary Sponsor
Salvatore DiDomenico
Click for details
AI Summary
- Creates new Chapter 140F requiring earned wage access (EWA) service providers to obtain a license from the Commissioner of Banks to operate in Massachusetts
- Exempts banks, credit unions, national banking associations, and savings institutions from licensing requirements
- Mandates consumer protections including: disclosure of all fees, a no-cost option for receiving proceeds, prohibition on late fees or interest charges, prohibition on credit reporting for non-repayment, and reimbursement of overdraft fees caused by provider errors
- Prohibits providers from using credit scores to determine eligibility, accepting credit card payments, sharing fees with employers, or using debt collection tactics to compel repayment
- Establishes penalties up to $1,000 for unlicensed operation and $500 per violation for licensed providers, with existing providers allowed to continue operating until July 1, 2026 if they apply for a license by January 1, 2026
Legislative Description
Relative to financial technology services
Last Action
Reporting date extended to Monday March 2, 2026
2/12/2026
Committee Referrals
Financial Services2/27/2025
Full Bill Text
No bill text available