Bill Summary: A05053

• Creates a new licensing and regulatory framework for earned income access providers under Banking Law Article 9-B, requiring providers to obtain a license from the superintendent except for exempt banking organizations.

• Requires earned income access transactions to be non-recourse, with fees capped at a superintendent-determined rate, and prohibits late fees, prepayment penalties, credit reporting, and credit checks.

• Mandates providers give consumers written notice of all fees and costs before transactions, deliver quarterly statements itemizing transactions and fees, and comply with NACHA rules and FDIC insurance requirements.

• Prohibits providers from engaging in debt collection activities, selling consumer personal information, requiring class action waivers, or structuring transactions that create continuing obligations or roll-over payments.

• Establishes superintendent authority to investigate, examine, and revoke licenses; impose penalties for violations; and adopt regulations governing advertising and operational requirements for earned income access providers.