Connecticut 2025 Regular Session Status: Enacted

SB 1396 — AN ACT CONCERNING EARNED BUT UNPAID WAGE OR SALARY INCOME ADVANCES.

Last action — SIGNED BY GOVERNOR

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Senate
  4. ✓
    Passed House
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced February 27, 2025. Enacted.

Signed by Governor Ned Lamont (Democratic) on July 08, 2025.

Odds of enactment

High chance

Based on the sponsor, cosponsors, and committee posture, this bill has a high chance of becoming law.

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Prognosis

Likely to advance 68% · moderate confidence
  • Enacted

    Current position in the legislative process.

  • Cleared a recorded vote

    Passed 2 recorded votes so far.

Based on stage, sponsorship breadth, committee status, recorded votes, and cross-state momentum — a description of the observable signals, not a prediction.

Bill Text

What changed in the latest version

404 added · 369 removed

404 line(s) added, 369 removed.

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General Assembly Substitute Bill No.
Substitute Senate Bill No.
1396 January Session, 2025 AN ACT CONCERNING EARNED BUT UNPAID WAGE OR SALARY INCOME ADVANCES.
1396 Public Act No.
25-155 AN ACT CONCERNING EARNED BUT UNPAID WAGE OR SALARY INCOME ADVANCES.
As used in this section, [and] sections 36a-556 to 36a-573, inclusive, and section 2 of this act:
As used in this section, [and] sections 36a-556 to 36a-573, inclusive, and section 3 of this act:
(A) A charge set forth in 32 CFR 232.4(c)(1), as amended from time to time, (B) a charge for any ancillary product, membership or service sold in connection or concurrent with a small loan, (C) any amount offered or agreed to by a LCO 1 of 12 Substitute Bill No.
(A) A charge set forth in 32 CFR 232.4(c)(1), as amended from time to time, (B) a charge for any ancillary product, membership or service sold in connection or Substitute Senate Bill No.
1396 borrower in furtherance of obtaining credit or as compensation for the use ofmoney, and(D)any fee,voluntarily orotherwise, charged,agreed to or paid by a borrower in connection or concurrent with a small loan] finance charge shall be included;
1396 concurrent with a small loan, (C) any amount offered or agreed to by a borrower in furtherance of obtaining credit or as compensation for the use ofmoney, and(D)any fee,voluntarily orotherwise, charged,agreed to or paid by a borrower in connection or concurrent with a small loan] finance charge shall be included;
(3) "Bona fide services" (A) means a financial benefit, product or service provided to or on behalf of a Connecticut borrower that has demonstrable market value and for which the Connecticut borrower maybeseparatelybilledintheabsenceofamembershiporsubscription, and (B) includes, but is not limited to, identity theft protection, credit monitoring and budgeting software;
(3) "Branch office" means a location other than the main office where the licensee, or any person on behalf of the licensee, will engage in activities that require a small loan license;
[(3)] (4) "Branch office" means a location other than the main office where the licensee, or any person on behalf of the licensee, will engage in activities that require a small loan license;
(4) "Connecticut borrower" means any borrower who resides in or maintains a domicile in this state and who (A) negotiates or agrees to the terms of the small loan in person, by mail, by telephone or via the Internet while physically present in this state, (B) enters into or executes a small loan agreement with the lender in person, by mail, by telephone or via the Internet while physically present in this state, or (C) makes a payment on the loan in this state.
[(4)] (5) "Connecticut borrower" means any borrower who resides in or maintains a domicile in this state and who (A) negotiates or agrees to the terms of the small loan in person, by mail, by telephone or via the Internet while physically present in this state, (B) enters into or executes a small loan agreement with the lender in person, by mail, by telephone or via the Internet while physically present in this state, or (C) makes a payment on the loan in this state.
[(5)] (6) "Control person" means an individual that directly or indirectly exercises control over another person, and includes any person that (A) is a director, general partner or executive officer, (B) in the case of a corporation, directly or indirectly has the right to vote ten per cent or more of a class of any voting security or has the power to sell or direct the sale of ten per cent or more of any class of voting securities, LCO 2 of 12 Substitute Bill No.
(5) "Control person" means an individual that directly or indirectly exercises control over another person, and includes any person that (A) is a director, general partner or executive officer, (B) in the case of a corporation, directly or indirectly has the right to vote ten per cent or more of a class of any voting security or has the power to sell or direct the sale of ten per cent or more of any class of voting securities, (C) in the case of a limited liability company, is a managing member, or (D) in the case of a partnership, has the right to receive upon dissolution, or has contributed, ten per cent or more of the capital.
1396 (C) in the case of a limited liability company, is a managing member, or (D)inthecase ofa partnership,hastheright to receive upondissolution, or has contributed, ten per cent or more of the capital.
For purposes of this subdivision, "control" means the power, directly or indirectly, to direct Public Act No.
For purposes of this subdivision, "control" means the power, directly or indirectly, to direct the management or policies of a company, whether through ownership of securities, by contract or otherwise;
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(7) "Earned but unpaid wage or salary income" means the wage, salary, compensation or other income earned on an hourly, project- based, piecework or other basis by a Connecticut borrower for the provision of labor or services to, or on behalf of, an employer, which (A) is owed by the employer but has not yet been paid to the Connecticut borrower, and (B) has been verified by an earned but unpaid wage or salary income advance provider;
1396 the management or policies of a company, whether through ownership of securities, by contract or otherwise;
(8) "Earned but unpaid wage or salary income advance" means a small loan that is an advance to a Connecticut borrower for earned but unpaid wage or salary income in an original principal amount that is notgreaterthantheamountofearnedbutunpaidwageorsalaryincome for any particular pay period;
(6) "Earned but unpaid wage or salary income" means the wage, salary, compensation or other income earned on an hourly, project- based, piecework or other basis by a Connecticut borrower for the provision of labor or services to, or on behalf of, an employer, which (A) is owed by the employer but has not yet been paid to the Connecticut borrower, and (B) has been verified by an earned but unpaid wage or salary income advance provider;
(9) "Earned but unpaid wage or salary income advance provider" means any person that engages in any of the activities set forth in subsection (a) of section 36a-556 with regard to an earned but unpaid wage or salary income advance;
(7) "Earned but unpaid wage or salary income advance" means a small loan that is an advance to a Connecticut borrower of earned but unpaid wage or salary income in an original principal amount that is less than seven hundred fifty dollars and not greater than the amount of earned but unpaid wage or salary income for any particular pay period;
(10) "Employer" means (A) an employer, as defined in section 31-58, who employs a Connecticut borrower and is obligated to pay the Connecticut borrower earned but unpaid wage or salary income, or (B) any other person who, in exchange for the provision of services to, or on behalf of, such person by a Connecticut borrower acting as an independent contractor, is contractually obligated to pay earned but unpaid wage or salary income to the Connecticut borrower ;
(8) "Earned but unpaid wage or salary income advance provider" means any person that engages in any of the activities set forth in subsection (a) of section 36a-556 with regard to an earned but unpaid wage or salary income advance;
(11) "Finance charge" means:
(9) "Employer" means (A) an employer, as defined in section 31-58, who employs a Connecticut borrower and is obligated to pay the Connecticut borrower earned but unpaid wage or salary income, or (B) any other person who, in exchange for the provision of services to, or on behalf of, such person by a Connecticut borrower acting as an independent contractor, is contractually obligated to pay earned but unpaid wage or salary income to the Connecticut borrower;
(A) A charge set forth in 32 CFR 232.4(c)(1), as amended from time to time, (B) a charge for any ancillary product, membership or service sold in connection or concurrent with a LCO 3 of 12 Substitute Bill No.
(10) "Finance charge" means:
1396 small loan, (C) any amount offered or agreed to by a Connecticut borrower in furtherance of obtaining credit or as compensation for the use ofmoney, and(D)any fee,voluntarily orotherwise, charged,agreed to or paid by a Connecticut borrower in connection or concurrent with a small loan;
(A) A charge set forth in 32 CFR 232.4(c)(1), as amended from time to time, (B) a charge for any ancillary product, membership or service sold in connection or concurrent with a small loan, (C) any amount offered or agreed to by a Connecticut Public Act No.
[(6)] (12) "Generating leads" means (A) engaging in the business of selling leads for small loans, (B) generating or augmenting leads for small loans for other persons for or with the expectation of compensation or gain, or (C) referring consumers to other persons for a small loan for or with the expectation of compensation or gain for such referral, except "generating leads" shall not include generating or augmenting leads for small loans for an exempt person, as described in subsection (b) of section 36a-557, using the exempt person's data or customer information;
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(13) "Independent contractor" has the same meaning as provided in section 36a-485;
1396 borrower in furtherance of obtaining credit or as compensation for the use ofmoney, and(D)any fee,voluntarily orotherwise, charged,agreed to or paid by a Connecticut borrower in connection or concurrent with a small loan;
[(7)] (14) "Lead" means any information identifying a potential consumer of a small loan;
[(6)] (11) "Generating leads" means (A) engaging in the business of selling leads for small loans, (B) generating or augmenting leads for small loans for other persons for or with the expectation of compensation or gain, or (C) referring consumers to other persons for a small loan for or with the expectation of compensation or gain for such referral, except "generating leads" shall not include generating or augmenting leads for small loans for an exempt person, as described in subsection (b) of section 36a-557, using the exempt person's data or customer information;
[(8)] (15) "Main office" means the main address designated on the system;
(12) "Independent contractor" has the same meaning as provided in section 36a-485;
[(9)] (16) "Open-end small loan" has the same meaning as "open-end credit", as defined in 12 CFR 1026.2, as amended from time to time;
[(7)] (13) "Lead" means any information identifying a potential consumer of a small loan;
[(10)] (17) "Person" means a natural person, corporation, company, limited liability company, partnership or association;
[(8)] (14) "Main office" means the main address designated on the system;
[(11)] (18) "Small loan" (A) means any loan of money or extension of credit, or the purchase of, or an advance of money on, a borrower's future potential source of money, including, but not limited to, future pay, salary, earned but unpaid wage or salary income, pension income or a tax refund, if (i) the amount or value is fifty thousand dollars or less, and (ii) the APR is greater than twelve per cent, and (B) does not include LCO 4 of 12 Substitute Bill No.
[(9)] (15) "Open-end small loan" has the same meaning as "open-end credit", as defined in 12 CFR 1026.2, as amended from time to time;
1396 (i) a retail installment contract made in accordance with section 36a-772, (ii) a loan or extension of credit for agricultural, commercial, industrial or governmental use, (iii) a residential mortgage loan, as defined in section 36a-485, [or] (iv) an open-end credit account that is accessed by a credit card issued by an exempt entity, as described in subdivision (1) of subsection (b) of section 36a-557, or (v) a wage, as defined in section 31-58, paid by an employer directly to an employee prior to a regular pay day in accordance with title 31;
[(10)] (16) "Person" means a natural person, corporation, company, limited liability company, partnership or association;
[(12)] (19) "Trigger lead" means a consumer report obtained pursuant to Section 604(C)(1)(B) of the Fair Credit Reporting Act, 15 USC 1681b, where the issuance of the report is triggered by an inquiry made with a consumer reporting agency in response to an application for credit.
[(11)] (17) "Small loan" (A) means any loan of money or extension of credit, or the purchase of, or an advance of money on, a borrower's future potential source of money, including, but not limited to, future pay, salary, earned but unpaid wage or salary income, pension income or a tax refund, if (i) the amount or value is fifty thousand dollars or less, Public Act No.
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1396 and (ii) the APR is greater than twelve per cent, and (B) does not include (i) a retail installment contract made in accordance with section 36a-772, (ii) a loan or extension of credit for agricultural, commercial, industrial or governmental use, (iii) a residential mortgage loan, as defined in section 36a-485, [or] (iv) an open-end credit account that is accessed by a credit card issued by an exempt entity, as described in subdivision (1) of subsection (b) of section 36a-557, or (v) a wage, as defined in section 31-58, paid by an employer directly to an employee prior to a regular pay day in accordance with the provisions of title 31;
[(12)] (18) "Trigger lead" means a consumer report obtained pursuant to Section 604(C)(1)(B) of the Fair Credit Reporting Act, 15 USC 1681b, where the issuance of the report is triggered by an inquiry made with a consumer reporting agency in response to an application for credit.
and [(13)] (20) "Unique identifier" means a number or other identifier assigned by protocols established by the system.
and [(13)] (19) "Unique identifier" means a number or other identifier assigned by protocols established by the system.
(NEW) (Effective October 1, 2025) (a) An earned but unpaid wage or salary income advance provider required to be licensed under sections 36a-555 to 36a-573, inclusive, of the general statutes, as amended by this act, shall:
(1) Develop and implement policies and procedures to respond to questions and complaints from Connecticut borrowers in an expedient manner;
(2) Offer each Connecticut borrower at least one option per transaction to obtain an earned but unpaid wage or salary income advance at no cost and clearly explain how to elect to utilize such no- cost option with respect to any offer of an earned but unpaid wage or salary income advance;
(3) If the provider charges or receives a finance charge, offer each Connecticut borrower who the provider approves to receive an earned LCO 5 of 12 Substitute Bill No.
1396 but unpaid wage or salary income advance from such provider an earned but unpaid wage or salary income advance in an amount equal to not less than seventy-five per cent of the amount of the Connecticut borrower's earned but unpaid wage or salary income for the pay period;
(4) Prior to offering or providing a Connecticut borrower an earned but unpaid wage or salary income advance:
(A) Fully and clearly disclose to the borrower all finance charges associated with the earned but unpaid wage or salary income advance;
(B) Inform the borrower that the borrower may submit complaints concerning the provider to the Department of Banking via the department's Internet web site and provide a link to such Internet web site;
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and (C) Verify that the borrower's earned but unpaid wage or salary income does not exceed the amount of the earned but unpaid wage or salary income advance by using (i) payroll data of the borrower's employer, (ii) electronic payroll data that the borrower affirmatively authorizes the provider to access, or (iii) any other method approved by the Banking Commissioner;
(5) Clearly explain the provider's cancellation procedure to Connecticut borrowers and allow such borrowers to cancel the earned but unpaid wage or salary income advance application, service, subscription or program at any time without incurring a fee;
(6) Clearly and conspicuously disclose to the Connecticut borrower, for each time that the provider solicits, charges or receives a finance charge purporting to be voluntarily charged, agreed to or paid, that:
(A) Such borrower may elect a finance charge of zero dollars;
(B) The finance charge is voluntary;
and (C) The amount and frequency of the earned but unpaid wage or salary income advances that a borrower is eligible to request or receive LCO 6 of 12 Substitute Bill No.
1396 are not contingent on whether the borrower pays or agrees to the voluntary finance charge or whether the borrower has previously paid a finance charge;
(7) Reimburse a Connecticut borrower the full amount of any overdraft or nonsufficient funds fee imposed on the borrower by the borrower's depository institution that is caused by the provider attempting to seek payment of any earned but unpaid wage or salary income advance amount or finance charge on a date before the payment date disclosed to the borrower or in an amount other than the payment amount disclosed to the borrower;
and (8) Schedule payment of any earned but unpaid wage or salary income advance amount, or finance charge, in a single payment on a date that (A) corresponds to the date of the Connecticut borrower's next scheduled employer paycheck or direct deposit payment, and (B) is not more than thirty-four days after the provider provides the earned but unpaid wage or salary income advance to the borrower.
(b) An earned but unpaid wage or salary income advance provider required to be licensed under sections 36a-555 to 36a-573, inclusive, of the general statutes, as amended by this act, shall not:
(1) Share with an employer any portion of a finance charge;
(2) Require a credit report, credit score or other credit-related information to determine the eligibility of a Connecticut borrower for an earned but unpaid wage or salary income advance;
(3) Accept payment for an earned but unpaid wage or salary income advance or finance charge from a Connecticut borrower by means of a credit card or charge card;
(4) Charge a late fee, deferral fee, interest or any other penalty or charge for the failure to pay for an earned but unpaid wage or salary income advance or finance charge;
(5) Report to a consumer reporting agency or consumer collection LCO 7 of 12 Substitute Bill No.
1396 agency any information about a Connecticut borrower regarding nonpayment for any earned but unpaid wage or salary income advance or finance charge;
(6) Compel or attempt to compel payment by a Connecticut borrower for any earned but unpaid wage or salary income advance or finance charge through any of the following means:
(A) The use of unsolicited outbound telephone calls;
(B) A lawsuit against a borrower in any court in any jurisdiction;
(C) The use of a third party to pursue collection from a borrower on the provider's behalf;
or (D) The sale of an outstanding amount to a consumer collection agency, as defined in section 36a-800 of the general statutes, for collection from a borrower;
(7) Charge or receive a total finance charge in excess of the amount permitted by subdivision (1) of subsection (d) of section 36a-558 of the general statutes, as amended by this act;
(8) Include any voluntary finance charge amount greater than zero dollars as a default option offered to a Connecticut borrower;
(9) Solicit a voluntary finance charge prior to informing the Connecticut borrower of how much earned but unpaid wage or salary income such borrower is approved to request;
or (10) Request payment for an earned but unpaid wage or salary income advance or finance charge from a Connecticut borrower prior to the date of the borrower's next scheduled employer paycheck or direct deposit payment.
Sec.
3.
LCO 8 of 12 Substitute Bill No.
(a) Except as provided in subsection (c) of section 36a-557, no person licensed or required to be licensed under section 36a-556 shall engage in any oftheactivitiesdescribedin subsection(a) ofsection36a-556for any smallloanthat containsany conditionor provisioninconsistent with the requirementsinsubsections(d)to (g),inclusive, ofthissection or section of this act.
1396 (a) Except as provided in subsection (c) of section 36a-557, no person licensed or required to be licensed under section 36a-556 shall engage in any oftheactivitiesdescribedin subsection(a) ofsection36a-556for any smallloanthat containsany conditionor provisioninconsistent with the requirementsinsubsections(d)to (g),inclusive, ofthissection or section 2 of this act.
(b) No person exempt from licensure under section 36a-557 shall engage in any of the activities described in subdivision (4), (5) or (6) of Public Act No.
(b) No person exempt from licensure under section 36a-557 shall engage in any of the activities described in subdivision (4), (5) or (6) of subsection (a) of section 36a-556 for any small loan made by a person who was licensed or who was required to be licensed under section 36a- 556 that contains any condition or provision inconsistent with the requirementsinsubsections(d)to (g),inclusive, ofthissection or section 2 of this act.
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(c) (1) Except as the result of a bona fide error or as set forth in subdivision(2)ofthissubsection,any smallloandescribedinsubsection (a) or (b) of this section that contains any condition or provision inconsistent with the requirements in subsections (d) to (g), inclusive, of this section or section 2 of this act shall not beenforced in this state.
1396 subsection (a) of section 36a-556 for any small loan made by a person who was licensed or who was required to be licensed under section 36a- that contains any condition or provision inconsistent with the requirementsinsubsections(d)to (g),inclusive,ofthissection or section of this act.
(c) (1) Except as the result of a bona fide error or as set forth in subdivision(2)ofthissubsection,any smallloandescribedinsubsection (a) or (b) of this section that contains any condition or provision inconsistent with the requirements in subsections (d) to (g), inclusive, of this section or section 3 of this act shall not beenforced in this state.
(3) For the purposes of this subsection, the term "bona fide error" includes, but is not limited to, clerical, calculation and computer malfunction, programming and printing errors, but does not include an LCO 9 of 12 Substitute Bill No.
(3) For the purposes of this subsection, the term "bona fide error" includes, but is not limited to, clerical, calculation and computer malfunction, programming and printing errors, but does not include an error of legal judgment with respect to a person's obligations under sections 36a-555 to 36a-573, inclusive, as amended by this act, or under regulations implemented pursuant to section 36a-573.
1396 error of legal judgment with respect to a person's obligations under sections 36a-555 to 36a-573, inclusive, as amended by this act, or under regulations implemented pursuant to section 36a-573.
(1) (A) For a small loan that is under five thousand dollars, except for an earned but unpaid wage or salary income advance, an APR that exceeds the lesser of thirty-six per cent or the maximum annual percentage rate for interest that is permitted with respect to the consumer credit extended under the Military Lending Act, 10 USC 987, as amended from time to time, or for a small loan that is between five thousand and fifty thousand dollars, an APR that exceeds twenty-five per cent;
Public Act No.
or (B) For an earned but unpaid wage or salary income advance, a total finance charge that exceeds (i) five dollars per advance, or (ii) if the advance ispart ofa suite ofbonafide services included ina membership or subscription, thirty dollars per thirty-day period;
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1396 (1) (A) For a small loan that is under five thousand dollars, except for an earned but unpaid wage or salary income advance, an APR that exceeds the lesser of thirty-six per cent or the maximum annual percentage rate for interest that is permitted with respect to the consumer credit extended under the Military Lending Act, 10 USC 987, as amended from time to time, or for a small loan that is between five thousand and fifty thousand dollars, an APR that exceeds twenty-five per cent;
or (B) For an earned but unpaid wage or salary income advance, a total finance charge that exceeds (i) four dollars per advance, or (ii) thirty dollars per month;
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(8) A waiver of participation in a class action or a provision requiring a borrower, whether acting individually or on behalf of others similarly situated, to assert any claim or defense in a nonjudicial forum that:
1396 (8) A waiver of participation in a class action or a provision requiring a borrower, whether acting individually or on behalf of others similarly situated, to assert any claim or defense in a nonjudicial forum that:
or (B) limits any claim or defense the borrower may have;
or (B) limits any claim or defense the Public Act No.
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1396 borrower may have;
or (11) Fees or charges of any kind, except as expressly permitted by subsection (e) of this section or section 2 of this act.
or (11) Fees or charges of any kind, except as expressly permitted by subsection (e) of this section or allowed under subparagraph (B) of subdivision (1) of this subsection and section 3 of this act.
(e) [Small] Except as provided in section 2 of this act, small loans as described in subsections (a) and (b) of this section may contain provisions:
(e) [Small] Except as provided in section 3 of this act, small loans as described in subsections (a) and (b) of this section may contain provisions:
(4) Allowing for the accrual of interest after the maturity date or the deferred maturity date, provided such interest shall not exceed twelve LCO 11 of 12 Substitute Bill No.
(4) Allowing for the accrual of interest after the maturity date or the deferred maturity date, provided such interest shall not exceed twelve per cent per annum computed on a daily basis on the respective unpaid Public Act No.
1396 per cent per annum computed on a daily basis on the respective unpaid balances;
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1396 balances;
This act shall take effect as follows and shall amend the following sections:
Sec.
Section 1 October 1, 2025 36a-555 Sec.
3.
2 October 1, 2025 New section Sec.
(NEW) (Effective October 1, 2025) (a) An earned but unpaid wage or salary income advance provider required to be licensed under sections 36a-555 to 36a-573, inclusive, of the general statutes, as amended by this act, shall:
3 October 1, 2025 36a-558(a) to (e) BA Joint Favorable Subst.
(1) Offer each Connecticut borrower who the provider approves to receive an earned but unpaid wage or salary income advance at least one option per transaction to receive such advance at no cost and clearly disclose the procedure for electing to receive such advance at no cost;
-LCO APP Joint Favorable LCO 12 of 12
(2) If the provider charges or receives a finance charge:
(A) Offer each Connecticut borrower, who the provider approves to receive an earned but unpaid wage or salary income advance, (i) an earned but unpaid wage or salary income advance in an amount equal Public Act No.
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1396 to not less than seventy-five per cent of the amount of the Connecticut borrower's earned but unpaid wage or salary income for the pay period, or (ii) not more than one earned but unpaid wage or salary income advance for the pay period;
and (B) Clearly and conspicuously disclose to the Connecticut borrower, for each time that the provider solicits, charges or receives a finance charge purporting to be voluntarily charged, agreed to or paid, that:
(i) The finance charge is voluntary;
(ii) such borrower may elect a finance charge of zero dollars;
and (iii) the amount and frequency of the earned but unpaid wage or salary income advances that a borrower is eligible to request or receive are not contingent on whether the borrower pays or agrees to the voluntary finance charge or whether the borrower has previously paid a finance charge;
(3) Prior to offering or providing a Connecticut borrower an earned but unpaid wage or salary income advance:
(A) Fully and clearly disclose to the borrower:
(i) Any finance charge associated with the earned but unpaid wage or salary income advance;
(ii) the provider's cancellation procedure;
(iii) that the borrower may submit complaints concerning the provider to the Department of Banking via the department's Internet web site;
and (iv) a link to such Internet web site;
(B) Verify that the borrower's earned but unpaid wage or salary income meets or exceeds the amount of the earned but unpaid wage or salary income advance by using (i) payroll data of the borrower's employer, (ii) electronic payroll data that the borrower affirmatively authorizes the provider to access, or (iii) any similar data or other reasonable method approved by the Banking Commissioner;
and (C) Require the borrower to attest that the borrower understands that the borrower may not receive more than one earned but unpaid wage Public Act No.
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1396 or salary income advance from more than one earned but unpaid wage or salary income advance provider on the basis of the same earned but unpaid wage or salary income, or to provide a similar attestation approved by the Banking Commissioner;
(4) Schedule the repayment of any earned but unpaid wage or salary income advance amount, or finance charge, in the form of a single repayment on a date that corresponds to the date of the Connecticut borrower's next scheduled paycheck or direct deposit payment from such borrower's employer and is not more than thirty-four days after the provider provides the earned but unpaid wage or salary income advance to the borrower, except that if such repayment is not made on such date due to a request by the borrower to reschedule the payment, lack of the borrower's available paycheck or direct deposit payment funds or payroll or similar error, the provider shall reschedule such repayment in the form of not more than three installments on any subsequent date or dates agreed to by theborrower at thetime when the borrower agrees to the earned but unpaid wage or salary income advance;
(5) Reimburse each Connecticut borrower the full amount of any overdraft or nonsufficient funds fee imposed on the borrower by the borrower's depository institution that is caused by the provider attempting to seek repayment of any earned but unpaid wage or salary income advance amount or finance charge on a date before the repayment date disclosed to the borrower or in an amount other than the repayment amount disclosed to the borrower;
(6)Make readily available to eachConnecticut borrower,inelectronic form, the following information:
(A) For each earned but unpaid wage or salary income advance provided to the borrower during the preceding twelve months, (i) the date of the earned but unpaid wage or salary income advance;
(ii) the Public Act No.
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1396 amount of any finance charge;
and (iii) the amount of the earned but unpaid wage or salary income advance;
and (B) The total amount of (i) all earned but unpaid wage or salary income advances that the borrower has received for the current pay period, if any;
(ii) all finance charges for such advances, if any;
and (iii) all earned but unpaid wage or salary income for the current pay period that has not been advanced to the borrower, if any;
(7)AlloweachConnecticutborrowertocancelanyearnedbutunpaid wage or salary income advance application, service, subscription or program at any time without incurring a fee;
(8) Implement measures to prevent an earned but unpaid wage or salary income advance from being provided to a Connecticut borrower who has previously received an earned but unpaid wage or salary income advance from another earned but unpaid wage or salary income advance provider on the basis of the same earned but unpaid wage or salary income, including, but not limited to, the following measures:
(A) The establishment and implementation of policies and procedures requiring a review and analysis of data in the possession andcontroloftheprovider at least once everysix monthsto identify any instance or pattern involving a Connecticut borrower receiving more than one earned but unpaid wage or salary income advance from more than one earned but unpaid wage or salary income advance provider for a single pay period, which totaled more than the borrower's earned but unpaid wage or salary income amount for such pay period;
and (B) Any similar measures the commissioner may require;
and (9) Develop and implement policies and procedures to respond to questions and complaints from Connecticut borrowers in an expedient manner.
Public Act No.
25-155 12 of 14 Substitute Senate Bill No.
1396 (b) An earned but unpaid wage or salary income advance provider required to be licensed under sections 36a-555 to 36a-573, inclusive, of the general statutes, as amended by this act, shall not:
(1) Charge or receive a total finance charge in excess of the amount permitted by subdivision (1) of subsection (d) of section 36a-558 of the general statutes, as amended by this act;
(2) Solicit a voluntary finance charge prior to informing the Connecticut borrower of how much earned but unpaid wage or salary income such borrower is approved to request;
(3) Set any voluntary finance charge in an amount greater than zero dollars as the default option offered to a Connecticut borrower;
(4) Share with an employer any portion of a finance charge paid by a Connecticut borrower;
(5) Request repayment for an earned but unpaid wage or salary income advance or finance charge from a Connecticut borrower prior to the date of the borrower's next scheduled paycheck or direct deposit payment from such borrower's employer;
(6) Accept repayment for an earned but unpaid wage or salary income advance or finance charge from a Connecticut borrower by means of a credit card or charge card;
(7) Charge a late fee, a deferral fee, interest or any other penalty or charge for the late repayment of, or failure to repay, an earned but unpaid wage or salary income advance or for the late payment of, or failure to pay, a finance charge;
(8) Compel or attempt to compel repayment by a Connecticut borrower for any earned but unpaid wage or salary income advance or finance charge through any of the following means:
Public Act No.
25-155 13 of 14 Substitute Senate Bill No.
1396 (A) The use of unsolicited outbound telephone calls;
(B) A lawsuit against the borrower in any court in any jurisdiction;
(C) The use of a third party to pursue collection from the borrower on the provider's behalf;
or (D) The sale of an outstanding amount to a consumer collection agency, as defined in section 36a-800 of the general statutes, for collection from the borrower;
(9) Require a credit report, credit score or other credit-related information to determine the eligibility of a Connecticut borrower for an earned but unpaid wage or salary income advance;
or (10) Report to a consumer reporting agency, as described in Section 603(p) of the Fair Credit Reporting Act, 15 USC 1681a, as amended from time to time, or consumer collection agency any information about a Connecticut borrower regarding nonpayment for any earned but unpaid wage or salary income advance or finance charge.
Governor's Action:
Approved July 8, 2025 Public Act No.
25-155 14 of 14
View plain text versions (5)

Action History

  1. SIGNED BY GOVERNOR

  2. TRANSMITTED BY SECRETARY OF THE STATE TO GOVERNOR

  3. TRANSMITTED TO SECRETARY OF THE STATE

  4. PUBLIC ACT 25-155

  5. IN CONCURRENCE

  6. HOUSE PASSED, SEN. AMEND. SCH. A

  7. HOUSE ADOPTED SEN. AMEND. SCH. A

  8. HOUSE CALENDAR NUMBER 675

  9. FAV. RPT., TABLED FOR HOUSE CALENDAR

  10. RULES SUSPENDED,TRANS.TO HOUSE

  11. SEN. PASSED, SEN. AMEND. SCH. A

  12. SEN. ADOPTED SEN. AMEND. SCH. A

  13. FAV. RPT., TAB. FOR CAL., SEN.

  14. NO NEW FILE BY COMM. ON Appropriations

  15. RPTD. OUT OF LCO

  16. FILED WITH LCO

  17. Joint Favorable

  18. IMMEDIATE TRANSMITTAL TO COMMITTEE

  19. REF. BY SEN. TO COMM. ON Appropriations

  20. FILE NO. 291

  21. SENATE CALENDAR NUMBER 191

  22. FAV. RPT., TAB. FOR CAL., SEN.

  23. RPTD. OUT OF LCO

  24. REFERRED TO Office of Legislative Research AND Office of Fiscal Analysis 03/26/25

  25. FILED WITH LCO

  26. Joint Favorable

  27. PUBLIC HEARING 0304

  28. REF. TO JOINT COMM. ON Banking

Sponsorship breakdown

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0 sponsors · 0 co-sponsors · 187 not signed on · 49 voted No

Sponsors (0)

None.

Co-sponsors (0)

None.

Not signed on (187)

187 members have not signed on to this bill.

Show all 187 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

House Roll Call Vote

Passed 101 Yea · 46 Nay · 4 Other
Party YeaNayPresentNot Voting
Democratic 692502
Republican 272002
Unaffiliated 5100
Total 1014604
% of votes cast 67%30%0%3%
How each member voted (151)
Member Party Vote
Ryan — Yea
Collins Main — Yea
Mccarthy Vahey — Yea
Morrin Bello — Yea
Sanchez, J. — Yea
Sanchez, R. — Nay
Aimee Berger-Girvalo Democratic Yea
Alphonse Paolillo Democratic Yea
Andre F. Baker Democratic Nay
Anne M. Hughes Democratic Nay
Anthony L. Nolan Democratic Nay
Antonio Felipe Democratic Nay
Aundre Bumgardner Democratic Yea
Bob Godfrey Democratic Not Voting
Bobby G. Gibson Democratic Not Voting
Brandon Chafee Democratic Nay
Christopher Poulos Democratic Yea
Christopher Rosario Democratic Nay
Corey P. Paris Democratic Yea
Daniel Gaiewski Democratic Yea
David DeFronzo Democratic Yea
Derell Wilson Democratic Yea
Dominique Johnson Democratic Yea
Eleni Kavros DeGraw Democratic Yea
Farley Santos Democratic Yea
Frank Smith Democratic Yea
Fred Gee Democratic Yea
Gary A. Turco Democratic Yea
Geoff Luxenberg Democratic Yea
Geraldo C. Reyes Democratic Nay
Gregory Haddad Democratic Nay
Hector Arzeno Democratic Yea
Henry J. Genga Democratic Yea
Hilda E. Santiago Democratic Yea
Hubert D. Delany Democratic Yea
Jaime S. Foster Democratic Yea
James Sanchez Democratic Yea
Jane M. Garibay Democratic Yea
Jason Doucette Democratic Yea
Jason Rojas Democratic Yea
Jennifer Leeper Democratic Yea
Jill Barry Democratic Yea
Jillian Gilchrest Democratic Nay
John Santanella Democratic Yea
John-Michael Parker Democratic Nay
Jonathan Fazzino Democratic Yea
Jonathan Jacobson Democratic Yea
Jonathan Steinberg Democratic Yea
Joseph P. Gresko Democratic Yea
Josh Elliott Democratic Yea
Joshua M. Hall Democratic Nay
Juan R. Candelaria Democratic Yea
Julio A. Concepcion Democratic Yea
Kadeem Roberts Democratic Nay
Kai J. Belton Democratic Yea
Kaitlyn Shake Democratic Nay
Kara Rochelle Democratic Nay
Kate Farrar Democratic Yea
Kenneth Gucker Democratic Yea
Kerry S. Wood Democratic Yea
Kevin Brown Democratic Yea
Larry B. Butler Democratic Yea
Laurie Sweet Democratic Nay
Liz Linehan Democratic Yea
Lucy Dathan Democratic Yea
Marcus Brown Democratic Yea
Maria P. Horn Democratic Yea
Mary Fortier Democratic Yea
Mary M. Mushinsky Democratic Nay
Mary Welander Democratic Yea
Maryam Khan Democratic Nay
Matt Blumenthal Democratic Yea
Matthew Ritter Democratic Yea
Melissa Osborne Democratic Yea
Michael "MJ" Shannon Democratic Yea
Michael D. Quinn Democratic Yea
Michael DiGiovancarlo Democratic Yea
Mike Demicco Democratic Nay
Minnie Gonzalez Democratic Yea
Moira Rader Democratic Nay
Nicholas Menapace Democratic Nay
Nick Gauthier Democratic Nay
Patricia A. Dillon Democratic Yea
Patrick Biggins Democratic Yea
Patrick S. Boyd Democratic Yea
Raghib Allie-Brennan Democratic Yea
Rebecca Martinez Democratic Nay
Renee LaMark Muir Democratic Yea
Robin E. Comey Democratic Nay
Roland J. Lemar Democratic Yea
Ronald A. Napoli Democratic Yea
Sarah Keitt Democratic Yea
Savet Constantine Democratic Yea
Stephen R. Meskers Democratic Yea
Steven J. Stafstrom Democratic Yea
Steven Winter Democratic Nay
Susan M. Johnson Democratic Yea
Tammy R. Exum Democratic Yea
Toni E. Walker Democratic Yea
Travis Simms Democratic Nay
Trenee McGee Democratic Yea
William Heffernan Democratic Yea
Amy Romano Republican Yea
Anne Dauphinais Republican Nay
Arnold Jensen Republican Yea
Ben McGorty Republican Yea
Bill Buckbee Republican Yea
Brian Lanoue Republican Yea
Cara Christine Pavalock-D'Amato Republican Nay
Carol Hall Republican Yea
Chris Aniskovich Republican Yea
Chris Stewart Republican Not Voting
Christie M. Carpino Republican Yea
Craig C. Fishbein Republican Nay
Dave W. Yaccarino Republican Nay
David Rutigliano Republican Nay
Devin R. Carney Republican Nay
Donna Veach Republican Not Voting
Doug Dubitsky Republican Nay
Gale L. Mastrofrancesco Republican Nay
Greg S. Howard Republican Yea
Irene M. Haines Republican Nay
Jason Buchsbaum Republican Yea
Jay M. Case Republican Yea
Joe Canino Republican Yea
Joe Hoxha Republican Yea
Joe Polletta Republican Yea
John E. Piscopo Republican Yea
Joseph H. Zullo Republican Nay
Karen Reddington-Hughes Republican Yea
Kathy Kennedy Republican Yea
Kurt Vail Republican Yea
Lezlye Zupkus Republican Nay
Mark DeCaprio Republican Nay
Mark W. Anderson Republican Yea
Martin Foncello Republican Nay
Mitch Bolinsky Republican Nay
Nicole Klarides-Ditria Republican Yea
Patrick E. Callahan Republican Yea
Seth Bronko Republican Yea
Steve Weir Republican Nay
Tami Zawistowski Republican Nay
Tammy Nuccio Republican Nay
Tim Ackert Republican Yea
Tina Courpas Republican Yea
Tom Delnicki Republican Yea
Tom O'Dea Republican Nay
Tony J. Scott Republican Yea
Tracy Marra Republican Nay
Vincent J. Candelora Republican Nay
William Pizzuto Republican Yea

Official roll call →

Senate Roll Call Vote

Passed 32 Yea · 3 Nay · 1 Other
Party YeaNayPresentNot Voting
Democratic 22201
Republican 10100
Total 32301
% of votes cast 89%8%0%3%
How each member voted (36)
Member Party Vote
Bob Duff Democratic Yea
Catherine A. Osten Democratic Yea
Ceci Maher Democratic Yea
Christine Cohen Democratic Yea
Derek Slap Democratic Yea
Douglas McCrory Democratic Not Voting
Gary A. Winfield Democratic Yea
Herron Gaston Democratic Yea
James J. Maroney Democratic Yea
Jan Hochadel Democratic Yea
Joan V. Hartley Democratic Yea
John W. Fonfara Democratic Yea
Jorge Cabrera Democratic Yea
Julie Kushner Democratic Yea
MD Rahman Democratic Yea
Mae Flexer Democratic Nay
Martha Marx Democratic Yea
Martin M. Looney Democratic Yea
Matthew L. Lesser Democratic Nay
Norman Needleman Democratic Yea
Patricia Billie Miller Democratic Yea
Paul Honig Democratic Yea
Rick Lopes Democratic Yea
Saud Anwar Democratic Yea
Sujata Gadkar-Wilcox Democratic Yea
Eric C. Berthel Republican Yea
Heather S. Somers Republican Yea
Henri Martin Republican Yea
Jason Perillo Republican Yea
Jeff Gordon Republican Yea
John A. Kissel Republican Yea
Paul Cicarella Republican Yea
Rob Sampson Republican Nay
Ryan Fazio Republican Yea
Stephen G. Harding Republican Yea
Tony Hwang Republican Yea

Official roll call →

Subjects

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