All Roll Calls
Yes: 229 • No: 46
IndianaHB 1125First Regular Session 124th General Assembly (2025)HouseWALLET
Earned wage access services.
Sponsored By: Jake Teshka (Republican)
Signed by Governor
Summary
Provides that under certain circumstances, a lender may contract for and receive a nonrefundable prepaid finance charge of 3% (instead of 2%, under current law) of the loan amount on a loan that is secured by an interest in land and is not made under a revolving loan account. Provides that under certain circumstances, a lender may contract for and receive a nonrefundable prepaid finance charge of 3% (instead of 2%, under current law) of the line of credit on a loan that is secured by an interest in land and is made under a revolving loan account. Provides that: (1) if a joint agreement of merger is approved by the department of financial institutions, any credit union whose existence will terminate as a result of the merger shall submit the joint agreement to a vote of its shareholders as directed by the resolution of the board of directors; and (2) a majority of shareholders voting may approve the joint agreement. Establishes within the Indiana Code a new chapter, to be known as the Indiana Earned Wage Access Act (Act), governing the offering and provision of earned wage access services to Indiana consumers. Provides that the Act is to be administered by the division of consumer credit within the department of financial institutions (department). Sets forth provisions that address the following: (1) Definitions of terms. (2) Exemptions from the Act's requirements. (3) The department's supervisory authority under the Act. (4) The licensing of providers of earned wage access services (providers). (5) The acquisition of control of a licensee. (6) Reporting and record keeping requirements for licensees. (7) Duties of providers under the Act. (8) Prohibited acts by providers. (9) The department's enforcement authority under the Act. (10) Criminal liability for certain prohibited acts. (11) Statutory construction of the Act's provisions. Makes conforming changes to sections of the Indiana Code codified outside the Act.
financial institutionsthe senateinsurance and financial institutions
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Bill Overview
Analyzed Economic Effects
20 provisions identified: 8 benefits, 5 costs, 7 mixed.
Free wage access and capped fees
Providers charging fees or asking for tips must offer a reasonable free delivery option, displayed as prominently as paid options. Paid delivery cannot be the default, and providers must explain how to choose free delivery. Providers must start the chosen free delivery within one business day after the transaction begins. You and the provider must agree on the delivery method. Covered fees cannot exceed the existing statutory cap; the supplied text does not state its amount.
More rights for wage access users
Before you sign up, providers must explain your rights and clearly disclose all service fees. Before major changes, they must notify you or get your consent. You can cancel at any time without a provider-imposed cancellation fee. Providers must handle questions and complaints promptly, though the law sets no specific response deadline. Licensed providers cannot use your credit score to decide eligibility, available amounts, or how often you receive money.
Workers control optional wage access tips
Before each transaction, providers requesting tips must say tips are optional and can be $0. Contracts must say tipping cannot affect available money, service frequency, service level, or cost. Providers cannot suggest a default tip above $0, mislead users about voluntary tips, or claim tips benefit specific people. Providers also cannot give employers any part of consumers’ fees, tips, gifts, or donations.
Workers gain wage app privacy controls
Wage access apps must honor your choices to stop covered ads, surveys, and electronic alerts. Providers may check your location when you create an account to confirm you are in Indiana. Later location access requires your permission. Covered app data cannot be sold or shared except for service delivery, law enforcement, legal proceedings, or your authorization.
Workers get wage advance repayment protections
Licensed providers cannot add late fees, deferral fees, interest, or other penalties for unpaid advances, fees, or tips. They cannot collect through unsolicited calls, consumer lawsuits, outside collectors, or sales to debt buyers, except for fraud or unlawful conduct. Providers can still pursue employers for contract breaches. Providers must follow federal electronic-transfer law and fully repay overdraft or insufficient-funds fees caused by collections earlier than disclosed or for a different amount. That refund protection excludes amounts incurred through consumer fraud or other unlawful acts.
Indiana can penalize wage access violations
After notice and a chance to be heard, Indiana can impose civil penalties up to $10,000 per violation. These penalties can accompany or replace other remedies, and collections go to the financial institutions fund. The director can ask courts to stop actual or threatened violations of the law or director’s orders. Knowingly or intentionally filing material falsehoods or omissions with intent to deceive is a Class C misdemeanor. Knowingly or intentionally missing required filings is a Class D infraction, rising to Class C for later offenses.
Credit union mergers count shareholders voting
Beginning July 1, 2025, certain credit union mergers need approval from a majority of shareholders voting, rather than shareholders present. This applies after state approval of the merger agreement, when the merging credit union’s separate existence ends. The department may allow a merger without an affirmative membership vote when the credit union risks insolvency. That exception also applies when its associated qualified group or groups have ended or will soon end.
Easier ownership changes for qualifying providers
Some wage access ownership changes bypass the usual state approval application. Exceptions cover designated-meeting proxy votes, certain court-appointed or legally appointed officials, exempt persons, public offerings, and reorganizations keeping the same ultimate controller. The director may grant public-interest exemptions; some exempt groups must notify the state within 15 days after taking control. Previously approved providers or controllers named in approved applications may instead submit notice and an attestation with the licensee. This route requires five years without license suspension or revocation for the person or a provider while under their control. The acquired provider—and acquiring provider, if any—must make no material business-plan changes because of the deal. A complete notice is approved unless the state rejects it within 30 days.
Higher upfront charges on land-secured loans
Beginning July 1, 2025, the maximum nonrefundable upfront finance charge on land-secured consumer loans rises from 2% to 3%. For revolving loans, the 3% cap applies to the full credit line. The charge remains subject to the existing combined-rate limit. This raises the allowed charge, but does not require lenders to charge more.
Workers face advance and repayment limits
Licensed providers cannot accept credit cards for repayment of advances, fees, tips, gifts, or donations. A provider offering both wage access and small loans cannot give you an advance while its small loan remains outstanding. It also cannot make you a small loan while its wage advance remains outstanding. Providers must verify outstanding small loans using the required state process.
Wage providers face ongoing leadership checks
Applicants, specified leaders, and known owners with at least 10% of any equity class must meet experience, financial-responsibility, character, and fitness standards. Controllers, proposed controllers, and key leaders must provide fingerprints and background histories through the multistate licensing system. Credit reports are required unless the person lacks a Social Security number; the director can waive requirements or accept substitutes. Providers must promptly correct material application errors, maintain qualifications and bonds, and face suspension or revocation for noncompliance. New key leaders require notice within 15 days and information within 45 days; absent rejection within 90 days after notice is complete, they are approved.
Wage providers must maintain financial bonds
Wage access license applicants must provide a surety bond, and licensees must keep it continuously. The required bond equals the greater of $100,000 or average daily proceeds to Indiana consumers during the latest completed calendar quarter. The required amount is capped at $250,000, though providers can maintain a larger bond. Providers maintaining a $250,000 bond do not need to calculate that daily average.
Wage providers pay yearly licensing fees
Initial and annual renewal fees are $1,500 until Indiana sets a fee schedule, with each capped at $2,500. Examination fees cannot exceed $100 per hour, and late examination or renewal payments can incur up to $50 daily. Licenses renew for January 1 through December 31, with fees due December 31 unless extended for good cause. Renewal reports must identify material application changes not already reported. The department can also collect fair, proportionate costs of administering and enforcing the law, including applications, examinations, and investigations.
Lender data sharing descriptions conflict
The supplied sources conflict about sharing workers’ data with licensed small-loan lenders. The bill summary describes restrictions on that sharing. The backing provision summary instead describes a duty to sell and share consumer data with those lenders. These descriptions do not establish a reliable account of this rule; the enacted text needs checking.
Wage access providers need Indiana licenses
Providers generally need an Indiana license to offer or advertise access to earned, unpaid wages. Coverage includes consumer-directed and employer-linked services when consumers live in Indiana or request money there; small loans are excluded. Federally insured depository institutions, direct employer early-pay programs, and qualifying supervised employees are exempt from licensing. Employee exemptions exclude independent contractors, and the director can demand proof of claimed exemptions. The provider definition also excludes specified service providers and entities reporting payments or nonpayments to credit reporting agencies.
Wage providers face exams and recordkeeping
Covered providers must keep transaction records for two years after initiation and give Indiana’s financial regulator free access. The director can examine licensed providers and suspected unlicensed operators, requiring reasonably needed records in the specified place and format. Examined parties must pay reasonable examination costs, though the director can excuse licensees. Applications, examination materials, and specified financial records generally remain confidential. Exceptions allow specified agency sharing, multistate complaint reporting, public licensee lists, and combined financial data.
Compliant wage advances are not loans
Licensed wage access services following this law are not classified as loans, credit, debt, or money transmission. They also do not violate the listed payroll-deduction and earned-income transfer laws. Offering these services alone does not make providers lenders, creditors, credit services organizations, debt collectors, or money transmitters. Covered fees and voluntary tips are not interest or finance charges under the listed criminal law. The act preserves its separately referenced restriction where applicable.
Wage access licensing limits and appeals
Indiana may suspend or revoke a wage access provider’s license when renewal forms or fees remain overdue for 60 days. Providers may pay overdue fees and seek reinstatement or appeal; licenses remain in force while an administrative-review hearing decision is pending. Beginning January 1, 2026, suspension and revocation orders require notice and review information, generally taking effect 15 days after service. Another statute may set a different date, or the agency may set a later date. After state revenue officials report someone on the latest tax warrant list, Indiana cannot issue or renew that person’s license until the person supplies a statement that the warrant is satisfied or the required revenue commissioner’s notice arrives.
Wage access provider records gain privacy
Beginning January 1, 2026, existing financial-institution disclosure limits also cover wage access licensees and registrants. Department personnel and others covered by the rule cannot disclose specified information about these businesses. This protects provider information but also limits public access to it.
Wage provider takeovers need state approval
People or groups acquiring control of a licensed wage provider generally need prior written state approval and a fitness review. The nonrefundable application fee is $1,500 until Indiana sets another amount, capped at $2,500. The state has 60 days after an application is complete to decide, unless extended for good cause. No decision within the applicable period means approval. Before applying, parties can request a written determination that a deal does not create control, avoiding the control-approval requirements.
Sponsors & Cosponsors
Sponsor
Jake Teshka
Republican • House
Cosponsors
Kyle Miller
Democratic • House
Kyle Walker
Republican • Senate
Lonnie Randolph
Democratic • Senate
Matt Lehman
Republican • House
Scott Baldwin
Republican • Senate
Roll Call Votes
House vote • 4/23/2025
Rules Suspended. Conference Committee Report 1: adopted by the House
Yes: 67 • No: 26
Senate vote • 4/23/2025
Rules Suspended. Conference Committee Report 1: adopted by the Senate
Yes: 44 • No: 1
Senate vote • 4/15/2025
Third reading: passed
Yes: 48 • No: 1
House vote • 2/10/2025
Third reading: passed
Yes: 70 • No: 18
Actions Timeline
Signed by the Governor
5/6/2025HousePublic Law 222
5/6/2025HouseSigned by the President of the Senate
4/29/2025SenateSigned by the Speaker
4/24/2025HouseSigned by the President Pro Tempore
4/24/2025SenateRules Suspended. Conference Committee Report 1: adopted by the Senate; Roll Call 500: yeas 44, nays 1
4/23/2025SenateRules Suspended. Conference Committee Report 1: adopted by the House; Roll Call 530: yeas 67, nays 26
4/23/2025HouseCCR # 1 filed in the Senate
4/23/2025SenateCCR # 1 filed in the House
4/23/2025HouseSenator Qaddoura removed as conferee
4/22/2025SenateSenator Baldwin added as conferee
4/22/2025SenateSenator Baldwin removed as advisor
4/22/2025SenateHouse conferees appointed: Teshka and Miller K
4/17/2025HouseHouse advisors appointed: Lehman, Lucas, Lauer and Andrade
4/17/2025HouseSenate advisors appointed: Randolph Lonnie M and Baldwin
4/17/2025SenateSenate conferees appointed: Walker K and Qaddoura
4/17/2025SenateHouse dissented from Senate amendments
4/17/2025HouseReturned to the House with amendments
4/16/2025SenateMotion to dissent filed
4/16/2025HouseThird reading: passed; Roll Call 431: yeas 48, nays 1
4/15/2025SenateSecond reading: ordered engrossed
4/14/2025SenateSenator Randolph added as cosponsor
4/10/2025SenateCommittee report: amend do pass, adopted
4/10/2025SenateSenator Baldwin added as second sponsor
4/10/2025SenateFirst reading: referred to Committee on Insurance and Financial Institutions
2/20/2025Senate
Bill Text
Enrolled House Bill (H)
House Bill (H)
House Bill (S)
Introduced House Bill (H)
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