The American Fintech Council (AFC) has announced its support for the newly enacted House Bill 1125, known as the Earned Wage Access Act, in Indiana. The legislation was signed into law by Governor Mike Braun and was led through the legislature by Representative Jake Teshka and Senator Kyle Walker. This law introduces a regulatory framework aimed at ensuring consumer-focused regulations for Earned Wage Access (EWA) services within the state.
Phil Goldfeder, CEO of the American Fintech Council, expressed approval of the new law, stating: "The passage of the bill and the new law provides Indiana workers with certainty and stability by ensuring that the tools they rely on to manage their money will remain transparent, responsible, and available." He further acknowledged Indiana's efforts in creating a financial landscape that supports informed decision-making for consumers.
Earned Wage Access services allow employees to access their wages before payday, offering an alternative to high-cost options like payday loans. The new legislation mandates EWA providers in Indiana to provide clear information regarding fees and ensure a no-cost option is available. It also prohibits credit checks, interest charges, late fees, and affirms that EWA is non-recourse.
Ashley Urisman, Director of State Government Affairs at AFC, commented on the significance of this development: “This new law fosters a safer environment for workers in Indiana, ensuring they can continue to access responsible EWA services.” She emphasized that this initiative highlights Indiana's commitment to both financial innovation and consumer protection.
The American Fintech Council serves as a trade association representing major fintech companies and banks offering embedded finance solutions. The organization aims to promote a transparent and inclusive financial system through responsible innovation in financial services.