The American Fintech Council (AFC) has expressed approval for the recent enactment of House Bill 1294 by the Maryland General Assembly. This legislation, sponsored by House Economic Matters Committee Chair Del. C.T. Wilson and Del. Marlon Amprey, establishes a revised regulatory framework for Earned Wage Access (EWA) services in Maryland. The new law aims to allow responsible EWA providers to return to the state while ensuring strong consumer protections.
In 2023, Maryland regulators issued guidance that restricted EWA services, causing many providers to leave the market and affecting approximately 100,000 workers who relied on these financial tools. In response, AFC and a coalition of EWA providers urged state leaders to establish industry standards that would make these services accessible again.
Phil Goldfeder, CEO of the American Fintech Council, stated, "This new law creates a pathway for responsible EWA providers to return to Maryland and once again serve the over 100,000 workers who previously benefited from these vital services." He commended Maryland's leadership for empowering consumers with modern financial tools.
The legislation includes safeguards such as offering a no-cost option for everyone, requiring transparent fee disclosures, preventing credit checks, and allowing users to cancel without incurring fees. These measures aim to protect consumers using EWA services.
Ryan Naples from DailyPay praised the legislation as beneficial for working people in Maryland. Ben LaRocco from EarnIn expressed gratitude towards customers who supported HB 1294 and thanked key figures like Chairman Wilson and Delegate Amprey for their leadership.
Other industry representatives also voiced their support. Tara Rider from Brigit highlighted the consumer protections included in the framework. Colin Jones from Cleo noted that it sets a high standard for consumer protection while preserving financial flexibility.
Matt Pierce from Immediate emphasized how this law supports financial stability by enabling access to wages between pay cycles. RaShawn Mitchell from MoneyLion described it as bipartisan policy enhancing financial wellness.
Molly Jones from Payactiv remarked on how the law provides an alternative to high-cost lending products. Kevin Lefton from Wagestream shared research indicating improved financial stability when individuals can choose their pay cycle with EWA.
Garth McAdam from ZayZoon acknowledged Chair Wilson and Delegate Amprey's commitment to working families through this bill which balances access with consumer protection.
Ashley Urisman of AFC concluded by stating that Maryland leaders have created a more inclusive financial landscape with this regulatory framework ensuring valuable support continues for workers in Maryland's economy.
The AFC represents leading fintech companies and innovative banks focused on promoting transparency and inclusivity within financial systems through responsible innovation in financial services.