New York Assembly Bill A00258

New York 2025-2026 Regular Session

• Introduced: 1/8/25
• Refer: 1/8/25
• Refer: 1/7/26

Caption

Provides for the licensing and regulation of income access services in the state.

Summary

Bill A00258 seeks to amend the banking law in New York by introducing a new article that regulates income access services. This legislation establishes a licensing framework for providers of earned income access transactions, which allow consumers to receive their earned but unpaid income before their regular payday. The bill outlines definitions, licensing requirements, compliance measures, and advertising regulations for these providers, ensuring that consumers are protected from predatory practices. Additionally, it sets caps on fees that can be charged for such transactions and mandates data collection and reporting to monitor the industry.

Impact

The implementation of this bill will create a new regulatory framework for income access services in New York, affecting both consumers and providers. It will require providers to obtain licenses, adhere to strict compliance and operational standards, and limit the fees they can charge. This regulatory oversight aims to protect consumers from potential exploitation while promoting transparency in the industry. Existing banking laws will be amended to incorporate these new provisions, thereby enhancing consumer protections in financial transactions related to earned income access.

Sentiment

The sentiment surrounding Bill A00258 appears to be generally supportive among advocates for consumer protection, as it aims to regulate a growing sector that has raised concerns about predatory lending practices. However, there may be some contention from industry stakeholders who could view the licensing and regulatory requirements as burdensome or restrictive. The absence of voting history or committee discussions indicates that the bill is still in the early stages of consideration, and further debate may shape its final form.

Contention

Notable points of contention may arise from industry representatives who argue that the licensing requirements could stifle innovation and increase operational costs. Additionally, there may be concerns about the cap on fees and how it could impact the viability of income access services. Advocates for consumer protection will likely emphasize the need for these regulations to prevent exploitation, while industry stakeholders may push back against perceived overreach by regulators.