Commercial Law - Earned Wage Access - Revisions

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb0237*

HOUSE BILL 237
I3, I2 6lr0106
(PRE–FILED) CF SB 94
By: Chair, Economic Matters Committee (By Request – Departmental – Labor)
Requested: September 30, 2025
Introduced and read first time: January 14, 2026
Assigned to: Economic Matters

A BILL ENTITLED

AN ACT concerning 1

Commercial Law – Earned Wage Access – Revisions 2

FOR the purpose of prohibiting certain tipping practices; altering the timeline for certain 3
refunds; subjecting certain earned wage access providers and loan lenders to certain 4
consumer loan requirements; and generally relating to earned wage access. 5

BY repealing and reenacting, with amendments, 6
Article – Commercial Law 7
Section 12–128, 12–318, and 12–1502 through 12–1504 8
Annotated Code of Maryland 9
(2013 Replacement Volume and 2025 Supplement) 10

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 11
That the Laws of Maryland read as follows: 12

Article – Commercial Law 13

12–128. 14

(a) A lender [who gives consumers an option to provide the lender a tip shall: 15

(1) Disclose to the consumer to whom the tip will be allocated; and 16

(2) Set the default tip at zero ] MAY NOT ACCEPT A TIP FROM A 17
CONSUMER OR GIVE A CONSUMER THE OPTION TO PROVIDE A TIP. 18

(b) A lender may not directly or indirectly suggest that providing a tip will 19
influence: 20

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(1) The lender’s willingness to provide a loan to a consumer at any time; or 1

(2) The terms of any loan offered to the consumer by that lender. 2

(c) A lender who receives a tip [that would otherwise create a rate of interest 3
above that allowed under this subtitle] may not be found in violation of this subtitle if the 4
lender returns all of the tip [or that portion of the tip necessary to reduce the rate of interest 5
to an amount allowed under this subtitle ] within [30 calendar] 7 days after receiving the 6
tip. 7

(d) A lender shall prominently disclose that[: 8

(1) Providing a tip does not influence the lender’s willingness to provide a 9
loan to the consumer at any time; and 10

(2) Any tip paid by the consumer does not inure to the direct benefit of any 11
specific employee of the lender or any other individual ] IT IS PROHIBITED FRO M 12
ACCEPTING A TIP FROM A CONSUMER. 13

12–318. 14

(a) A lender [who gives consumers an option to provide the lender a tip shall: 15

(1) disclose to the consumer to whom the tip will be allocated; and 16

(2) set the default tip at zero] MAY NOT ACCEPT FROM ANY CONSUMER, 17
OR GIVE ANY CONSUMER THE OPTION TO PROVIDE, A TIP. 18

(b) A lender may not directly or indirectly suggest that providing a tip will 19
influence: 20

(1) the lender’s willingness to provide a loan to a consumer at any time; or 21

(2) the terms of any loan offered to the consumer by that lender. 22

(c) A lender who receives a tip [that would otherwise create a rate of interest 23
above that allowed under this subtitle] may not be found in violation of this subtitle if the 24
lender returns all of the tip [or that portion of the tip necessary to reduce the rate of interest 25
to an amount allowed under this subtitle ] within [30 calendar] 7 days after receiving the 26
tip. 27

(d) A lender shall prominently disclose that[: 28

(1) Providing a tip does not influence the lender’s willingness to provide a 29
loan to the consumer at any time; and 30

HOUSE BILL 237 3

(2) Any tip paid by the consumer does not inure to the direct benefit of any 1
specific employee of the lender or any other individual ] IT IS PROHIBITED FRO M 2
ACCEPTING A TIP FROM A CONSUMER. 3

12–1502. 4

(a) A person may not engage in the business of providing earned wage access 5
unless the person is licensed under or is exempt from the licensing requirements of Title 6
11, Subtitle 2 of the Financial Institutions Article. 7

(b) Failure to obtain a consumer loan license shall subject a provider to the 8
enforcement provisions of Title 11, Subtitle 2 of the Financial Institutions Article. 9

(c) An earned wage access provider licensed under Title 11, Subtitle 2 of the 10
Financial Institutions Article and subject to this subtitle is exempt from other provision s 11
of State law governing lending, credit, or debt, including the provisions of Subtitle 1, 12
Subtitle 3, Subtitle 9, and Subtitle 10 of this title WITH THE EXCEPTION OF §§ 12–304, 13
12–305, AND 12–316.1 OF THIS TITLE. 14

(d) Earned wage access services provided in accordance with this subtitle may not 15
be considered: 16

(1) A money transmission; or 17

(2) A violation of or noncompliance with State laws governing deductions 18
from payroll, salary, wages, compensation, or other income or the purchase, sale, 19
assignment, or order for unpaid but earned wages. 20

12–1503. 21

(a) A provider of earned wage access shall: 22

(1) Develop and implement policies and procedures to respond to questions 23
raised by consumers; 24

(2) Address complaints from consumers in an expedient manner; 25

(3) Whenever the provider offers a consumer the option to receive earned 26
wage access services for a fee [or solicits an optional tip, gratuity, or other donation], offer 27
[to] the consumer at least one reasonable option to obtain earned wage access at no cost to 28
the consumer; 29

(4) Clearly explain to a consumer how to elect a no –cost option described 30
in item (3) of this subsection; 31

4 HOUSE BILL 237

(5) Before entering into an agreement with a consumer for the provision of 1
earned wage access services: 2

(i) Inform the consumer of the consumer’s rights under the 3
agreement; and 4

(ii) Fully and clearly disclose all fees associated with the earned 5
wage access services; 6

(6) Inform a consumer of any material changes to the terms and conditions 7
of the earned wage access services before implementing those changes for that consumer; 8

(7) Allow a consumer to cancel use of the provider’s earned wage access 9
services at any time without incurring a cancellation fee imposed by the provider; 10

(8) Comply with all ap plicable local, state, and federal privacy and 11
information security laws; 12

(9) [If a provider solicits, charges, or receives a tip, gratuity, or other 13
donation from a consumer: 14

(i) Set the default tip, if any, at zero; 15

(ii) Clearly and conspicuously disclose to the consumer immediately 16
prior to each transaction that any tip paid by the consumer does not inure to the direct 17
benefit of any specific employee of the provider or any other individual; 18

(iii) Clearly and conspicuously disclose to the consumer immediately 19
prior to each transaction that a tip, gratuity, or other donation amount is optional and 20
voluntary; and 21

(iv)] Clearly and conspicuously disclose in the provider’s service 22
contract with the consumer that[: 23

1. tips, gratuities, or other donations are voluntary; and 24

2. The offering of earned wage access services, including the 25
amount of proceeds a consumer is eligible to request and the frequency with which proceeds 26
are provided to a consumer, is not contingent on whether the consumer pays any tip, 27
gratuity, or other donation or on the size of the tip, gratuity, or other donation ] THE 28
PROVIDER IS PROHIBIT ED BY LAW FROM SOLIC ITING OR RETAINING T IPS, 29
GRATUITIES, OR OTHER DONATIONS; 30

(10) Provide proceeds to a consumer by any means mutually agreed upon by 31
the consumer and the provider; and 32

HOUSE BILL 237 5

(11) Except as provided in subsection (b) of this section, if the provider will 1
seek repayment of outstanding proceeds or payment of fees or other amounts owed or 2
incurred[, including voluntary tips, gratuities, or other donations, ] from a consumer’s 3
account at a bank in connection with earned wage access services covered by this subtitle, 4
including by means of electric fund transfer: 5

(i) Comply with the federal Electronic Fund Tran sfer Act and 6
regulations adopted to implement the Act; and 7

(ii) Reimburse the consumer within 5 business days for the full 8
amount of any overdraft or nonsufficient fund fees imposed on a consumer by the 9
consumer’s bank that were caused by the provider attempting to seek repayment of any 10
outstanding proceeds or payment of fees[, tips, gratuities, or other donations] in connection 11
with earned wage access services covered by this subtitle. 12

(b) Subsection (a)(11) of this section does not apply to a provid er seeking 13
repayment of outstanding proceeds or payment of fees or other amounts owed that were 14
received or incurred by a consumer through fraudulent or other unlawful means. 15

12–1504. 16

A provider of earned wage access may not: 17

(1) Share with an employer any [fees, tips, or other] charges received from 18
a consumer for earned wage access; 19

(2) SOLICIT OR CHARGE A TIP; 20

(3) Condition a consumer’s ability to obtain earned wage access on the 21
consumer’s ability or willingness to pay the provider a tip; 22

[(3)] (4) Charge a consumer a late fee, interest, or other penalty for 23
failure to pay any proceeds[,] OR fees[, or tips]; 24

[(4)] (5) Report any information about a consumer’s failure to pay any 25
proceeds[,] OR fees[, or tips] to any consumer reporting agency; 26

[(5)] (6) Obtain a consumer’s credit report as a method of qualifying the 27
consumer for earned wage access; 28

[(6)] (7) Receive interest from a consumer; or 29

[(7)] (8) Compel or attempt to compel payment by a consume r of any 30
proceeds, fees, tips, gratuities, or other donations through: 31

(i) A civil action against the consumer; 32
6 HOUSE BILL 237

(ii) The use of a third party to pursue collection from the consumer 1
on the provider’s behalf; or 2

(iii) The sale or assignment of outstanding amounts to a third–party 3
collector or debt buyer for collection from the consumer. 4

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 5
October 1, 2026. 6