Frequently Asked Questions
Definitions
An earned wage access service means the payment of funds to a consumer determined by a consumer’s representation; and the provider’s reasonable determination of earned but unpaid income; or employment, income, and attendance data obtained directly or indirectly by a provider from an employer or an employer’s payroll service provider.(Utah Code § 13-78-101(3))
Earned but unpaid income means compensation, including salary, wages, or other income that is: earned or accrued by a consumer through services provided to an employer or as an independent contractor; and not paid yet to the consumer by the employer or hiring party. (Utah Code § 13-78-101(2))
The consumer means an individual who resides in Utah. (Utah Code § 13-78-101(1))
The provider means a person engaged in the business of offering earned wage access services.
A provider does not include a service provider, such as a payroll service provider, that verifies, but does not fund, earned wages; an employer that advances a portion of earned wages directly to employees or independent contractors; or a person regulated under Title 7, Financial Institutions Act. (Utah Code § 13-78-101 (5))
Registration Questions
Yes. Except as provided in Subsection (4), a person may not act as a provider without registering with the Division. (Utah Code § 13-78-102(1))
No.
Annually.
Initial Applications: Non-refundable $500.00 registration fee + $20.00 BCI background check processing fee
Renewal Applications: Non-refundable $500.00 registration fee
The provider is responsible for the cost of the background check, which is $20, and shall be paid to the Division at the time of submitting the initial application.
The provider is responsible for paying any fees associated with obtaining the fingerprint card.
The wage access service provider’s principal must submit a fingerprint card in a form acceptable to the Division and consent to a criminal background check by the Utah Bureau of Criminal Identification. The provider is responsible for paying any fees associated with obtaining the fingerprint card. (Utah Code § 13-78-102(5)(a))
Yes. Please review the penalties in Utah Code § 13-78-104.
Yes. Please review the reasons in Utah Code § 13-78-105.
Annually.
Yes.
- A provider may not compel a consumer to repay the funds by: using or threatening to use civil lawsuits, outbound calls, third-party collections, or debt sales; reporting or threatening to report nonpayment to consumer reporting agencies; or charging or threatening to charge interest, finance charges, late fees, or other penalties for nonpayment;
- A provider may not use a consumer's credit report or credit score as defined by 15 U.S.C. Sec. 1681 et seq., to determine eligibility for earned wage access services;
- A provider may not accept payment with a credit card or charge card;
- A provider may not condition receipt of funds based on fees, tips, gratuities, or donations;
- A provider may not mislead a consumer about the voluntary nature of tips, gratuities, or donations;
- A provider may not charge a consumer a fee, interest, or any other penalty for failure to repay outstanding proceeds, fees, tips, or gratuities; or
- A provider may not provide earned wage access services in this state without first registering with the division. (Utah Code § 13-78-103(2))
Yes. (Utah Code § 13-78-103(2))
- A provider shall develop and implement procedures to address consumer questions and complaints.
- A provider shall before entering into an agreement for earned wage access services with a consumer, clearly and conspicuously disclose: the consumer's rights under the agreement; all fees; and any voluntary tip, gratuity, or donation opportunities.
- A provider shall obtain customer consent to changes to terms and conditions of the earned wage access services; or clearly and conspicuously disclose any material changes to terms and conditions of the earned wage access services at least 30 days before the effective date of the material changes.
- A provider shall allow a consumer to cancel the use of earned wage access services at any time without incurring a penalty.
- A provider shall offer at least one no-fee option to receive funds and clearly and conspicuously disclose how to select the no-fee option to receive funds.
- A provider shall comply with all applicable local, state, and federal privacy and information security laws.
- A provider shall deliver funds through any method agreed upon by the consumer and provider.
- A provider shall reimburse overdraft or non-sufficient fund fees the consumer incurs as a result of the provider's error in disclosed or actual payment amount or payment date unless the funds were acquired by a consumer through fraudulent means.
- A provider shall clearly and conspicuously disclose the voluntary nature of tips, gratuities, or donations and ensure the availability or terms of the earned wage access services are not contingent upon the payment of tips, gratuities, or donations.
- A provider shall provide information to a consumer on how to file a complaint with the division.
- A provider shall provide the following disclosures to a consumer at the time the consumer makes a request for funds:
- the anticipated timeline the consumer will receive the requested funds;
- the amount of funds the consumer has requested;
- the amount of the fee charged
- the amount of funds the consumer will receive;
- the account that will receive the funds; and
- the date the provider is authorized to withdraw funds from the consumer's account, including fees and voluntary payments; and
- before initiating an advance, require the customer to acknowledge receiving the opportunity to view all disclosures listed in Subsection (2)(k) and any costs and fees.
