NJ A5894

Requires earned income access service providers (companies that advance workers their earned but unpaid wages through employer integrations) to obtain a license from the Department of Banking and Insurance, with licenses valid for one year and non-transferable

Earned income access services that comply with the bill's requirements are not considered loans; non-compliant services are subject to civil and criminal usury laws, Truth in Lending Act disclosures, and treated as loans with fees counted as interest

Providers must allow consumers to cancel at any time without charge, cannot require consumers to open specific bank accounts, cannot report repayment or failed repayment to credit agencies, and cannot sell or share consumer personal information

Consumers are not liable for failed repayment if an employer fails to meet payroll obligations; fees and voluntary payments are capped at an average amount to be established by the department following stakeholder input

Penalties for violations range up to $5,000 for first offenses and $15,000 for subsequent violations, and licenses may be suspended or revoked for fraud, consumer complaints, or non-compliance with bill requirements