Maryland Enacts New EWA Bill to Protect Access in the State

Maryland’s bill HB 1294, Earned Wage Access and Credit Modernization, went into effect today, following passage by the Maryland General Assembly on April 7. The bill comes after two years of collaboration between legislators, industry, consumer advocates, and the state’s banking regulator to create appropriate consumer protections and oversight of the EWA sector.

The bill creates a new, dedicated license for EWA providers and encodes important consumer protections into law. These include requiring a mandatory free option, so any fees for expedited delivery are fully voluntary, as well as imposing a cap on expedited delivery fees.

Maryland is the tenth state to enact a dedicated oversight framework for EWA providers – joining California, Nevada, Missouri, Wisconsin, South Carolina, Kansas, Utah, Arkansas, and Indiana. In addition to these ten states, two states – Arizona and Montana – have issued Attorney General Opinions confirming EWA is not a loan. These Opinions recognize EWA as a new financial product that does not fit within existing lending laws, providing regulatory clarity for the industry in that regard.

Payactiv is already fully compliant with the requirements in the new Maryland law, and no product changes will be required for Payactiv or our employer partners. Payactiv expects to become a licensed EWA provider in Maryland after the application is released later this year.