SB 1396 — AN ACT CONCERNING EARNED BUT UNPAID WAGE OR SALARY INCOME ADVANCES.
Last action — SIGNED BY GOVERNOR
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✓Introduced
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✓In Committee
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✓Passed Senate
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✓Passed House
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✓To Executive
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6Enacted
This bill has been enacted into law. Introduced February 27, 2025. Enacted.
Signed by Governor Ned Lamont (Democratic) on July 08, 2025.
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Enacted
Current position in the legislative process.
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Bill Text
What changed in the latest version
404 added · 369 removed404 line(s) added, 369 removed.
General Assembly Substitute Senate Bill No.
1396 JanuaryPublic Session,Act 2025No. AN ACT CONCERNING EARNED BUT UNPAID WAGE OR SALARY INCOME ADVANCES.
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 23 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 Senate Bill No.
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"Branch fideoffice" services" (A) means a financiallocation benefit,other productthan orthe servicemain providedoffice towhere the licensee, or any person on behalf of a Connecticut borrower that has demonstrable market value and for which the Connecticutlicensee, borrowerwill maybeseparatelybilledintheabsenceofamembershiporsubscription,engage andin (B)activities includes,that butrequire isa notsmall limitedloan to,license; identity theft protection, credit monitoring and budgeting software;
[(3)] (4) "Branch"Connecticut office"borrower" means any borrower who resides in or maintains a locationdomicile otherin thanthis state and who (A) negotiates or agrees to the mainterms officeof wherethe small loan in person, by mail, by telephone or via the licensee,Internet while physically present in this state, (B) enters into or anyexecutes persona onsmall behalfloan ofagreement with the licensee,lender willin engageperson, by mail, by telephone or via the Internet while physically present in activitiesthis thatstate, requireor (C) makes a smallpayment on the loan license;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)](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(C) 2in the case of 12a Substitutelimited Billliability No.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.
1396For (C)purposes in the case of athis limitedsubdivision, liability"control" company,means isthe apower, managingdirectly member, or (D)inthecaseindirectly, ofa partnership,hastheright to receivedirect upondissolution,Public orAct hasNo. contributed, ten per cent or more of the capital.
For25-155 purposes2 of this14 subdivision,Substitute "control"Senate meansBill theNo. power, directly or indirectly, to direct the management or policies of a company, whether through ownership of securities, by contract or otherwise;
(7)1396 "Earned but unpaid wage or salary income" means the wage,management salary, compensation or otherpolicies incomeof earned on an hourly, project- based, piecework or other basis by a Connecticutcompany, borrowerwhether forthrough theownership provision of laborsecurities, or services to, or on behalf of, an employer, which (A) is owed by thecontract employer but has not yet been paid to the Connecticut borrower, and (B) has been verified by an earned but unpaid wage or salaryotherwise; income advance provider;
(8)(6) "Earned but unpaid wage or salary incomeincome" advance" means athe smallwage, loansalary, thatcompensation isor other income earned on an advancehourly, toproject- based, piecework or other basis by a Connecticut borrower for earnedthe butprovision unpaidof wagelabor or salaryservices incometo, inor anon originalbehalf principalof, amountan thatemployer, which (A) is notgreaterthantheamountofearnedbutunpaidwageorsalaryincomeowed forby anythe particularemployer paybut period;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)(7) "Earned but unpaid wage or salary income advanceadvance" provider" means anya personsmall loan that engagesis inan anyadvance to a Connecticut borrower of theearned activitiesbut setunpaid forthwage or salary income in subsectionan (a)original ofprincipal sectionamount 36a-556that withis regardless tothan anseven hundred fifty dollars and not greater than the amount of earned but unpaid wage or salary income advance;for any particular pay period;
(10)(8) "Employer""Earned 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,income oradvance (B)provider" means any other person who,that engages in exchangeany forof the provisionactivities ofset servicesforth to,in orsubsection on(a) behalfof of,section such36a-556 personwith byregard ato Connecticut borrower acting as an independent contractor, is contractually obligated to pay earned but unpaid wage or salary income toadvance; the Connecticut borrower ;
(11)(9) "Finance"Employer" charge"means 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)(10) A"Finance chargecharge" setmeans: 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.
1396(A) smallA loan,charge (C)set anyforth amountin offered32 orCFR agreed232.4(c)(1), toas byamended afrom Connecticuttime borrowerto intime, furtherance(B) ofa obtainingcharge credit or as compensation for theany useancillary ofmoney,product, and(D)anymembership fee,voluntarilyor orotherwise,service charged,agreedsold toin connection or paidconcurrent bywith a Connecticutsmall borrowerloan, in(C) connectionany amount offered or concurrentagreed withto by a smallConnecticut loan;Public Act No.
[(6)]25-155 (12)3 "Generating leads" means (A) engaging in the business of selling14 leadsSubstitute forSenate smallBill loans,No. (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;
(13)1396 "Independentborrower contractor"in hasfurtherance theof sameobtaining meaningcredit or as providedcompensation for the use ofmoney, and(D)any fee,voluntarily orotherwise, charged,agreed to or paid by a Connecticut borrower in sectionconnection 36a-485;or concurrent with a small loan;
[(7)][(6)] (14)(11) "Lead""Generating leads" means any(A) informationengaging identifyingin athe potentialbusiness consumerof 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;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)](12) (15)"Independent "Maincontractor" office"has means the mainsame addressmeaning designatedas onprovided thein system;section 36a-485;
[(9)][(7)] (16)(13) "Open-end"Lead" smallmeans loan"any hasinformation theidentifying samea meaningpotential asconsumer "open-endof credit",a assmall definedloan; in 12 CFR 1026.2, as amended from time to time;
[(10)][(8)] (17)(14) "Person""Main office" means athe naturalmain person,address corporation,designated company,on limitedthe liabilitysystem; company, partnership or association;
[(11)][(9)] (18)(15) "Small"Open-end small loan" (A)has means any loan of money or extension of credit, or the purchasesame of,meaning oras an"open-end advancecredit", ofas moneydefined on,in a12 borrower'sCFR future1026.2, potentialas sourceamended offrom money,time including,to buttime; 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.
1396[(10)] (i)(16) a"Person" retailmeans installment contract made in accordance with section 36a-772, (ii) a loannatural orperson, extensioncorporation, ofcompany, creditlimited forliability agricultural,company, commercial,partnership industrial or governmentalassociation; 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;
[(12)][(11)] (19)(17) "Trigger"Small lead"loan" (A) means aany consumerloan reportof obtainedmoney pursuantor toextension Sectionof 604(C)(1)(B)credit, ofor the Fairpurchase Creditof, Reportingor Act,an 15advance USCof 1681b,money whereon, thea issuanceborrower's future potential source of themoney, reportincluding, isbut triggerednot bylimited anto, inquiryfuture madepay, withsalary, earned but unpaid wage or salary income, pension income or a consumertax reportingrefund, agencyif in(i) responsethe toamount anor applicationvalue foris credit.fifty thousand dollars or less, Public Act No.
25-155 4 of 14 Substitute Senate Bill No.
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)(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;
Show all 148 changed lines (108 more)
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(a) 8Except as provided in subsection (c) of 12section Substitute36a-557, Billno 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(b) (a)No Except as provided in subsection (c) of section 36a-557, no person licensedexempt orfrom requiredlicensure to be licensed under section 36a-55636a-557 shall engage in any oftheactivitiesdescribedinof subsection(a)the ofsection36a-556foractivities anydescribed smallloanthatin containsanysubdivision conditionor(4), provisioninconsistent(5) with the requirementsinsubsections(d)to (g),inclusive, ofthissection or section(6) 2 of thisPublic act.Act No.
(b)25-155 No5 person exempt from licensure under section 36a-557 shall engage in any of the14 activitiesSubstitute describedSenate inBill subdivisionNo. (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.
(c)1396 (1)subsection Except(a) asof thesection result36a-556 offor aany bonasmall fideloan errormade orby asa setperson forthwho inwas subdivision(2)ofthissubsection,anylicensed smallloandescribedinsubsectionor (a)who orwas (b)required ofto thisbe licensed under section 36a- that contains any condition or provision inconsistent with the requirementsrequirementsinsubsections(d)to in(g),inclusive,ofthissection subsections (d) to (g), inclusive, of this section or section 2 of this actact. shall not beenforced in this state.
(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 LCOerror 9 of 12legal Substitutejudgment Billwith No.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)Public (A)Act ForNo. 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;
or25-155 (B)6 Forof an14 earnedSubstitute butSenate unpaidBill wageNo. 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;
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;
LCO(8) 10A waiver of 12participation Substitutein Billa No.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 borrowerPublic mayAct have;No.
25-155 7 of 14 Substitute Senate Bill No.
1396 borrower may have;
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 23 of this act.
(e) [Small] Except as provided in section 23 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 LCOper 11cent ofper 12annum Substitutecomputed Billon a daily basis on the respective unpaid Public Act No.
139625-155 per8 centof per14 annumSubstitute computedSenate onBill aNo. daily basis on the respective unpaid balances;
1396 balances;
ThisSec. act shall take effect as follows and shall amend the following sections:
Section3. 1 October 1, 2025 36a-555 Sec.
2(NEW) (Effective October 1, 20252025) New(a) sectionAn Sec.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(1) OctoberOffer 1,each 2025Connecticut 36a-558(a)borrower who the provider approves to (e)receive BAan Jointearned Favorablebut Subst.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(2) APPIf Jointthe Favorableprovider LCOcharges 12or ofreceives 12a 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.
25-155 9 of 14 Substitute Senate Bill No.
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.
25-155 10 of 14 Substitute Senate Bill No.
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.
25-155 11 of 14 Substitute Senate Bill No.
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.
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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
Show all 148 changed rows (108 more)
View plain text versions (5)
- Chaptered Public Act No. 25-155 Current pdf
- APP Joint Favorable View text pdf
- File No. 291 View text pdf
- BA Joint Favorable View text pdf
- Raised Bill View text pdf
Action History
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SIGNED BY GOVERNOR
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TRANSMITTED BY SECRETARY OF THE STATE TO GOVERNOR
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TRANSMITTED TO SECRETARY OF THE STATE
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PUBLIC ACT 25-155
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IN CONCURRENCE
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HOUSE PASSED, SEN. AMEND. SCH. A
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HOUSE ADOPTED SEN. AMEND. SCH. A
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HOUSE CALENDAR NUMBER 675
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FAV. RPT., TABLED FOR HOUSE CALENDAR
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RULES SUSPENDED,TRANS.TO HOUSE
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SEN. PASSED, SEN. AMEND. SCH. A
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SEN. ADOPTED SEN. AMEND. SCH. A
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FAV. RPT., TAB. FOR CAL., SEN.
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NO NEW FILE BY COMM. ON Appropriations
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RPTD. OUT OF LCO
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FILED WITH LCO
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Joint Favorable
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IMMEDIATE TRANSMITTAL TO COMMITTEE
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REF. BY SEN. TO COMM. ON Appropriations
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FILE NO. 291
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SENATE CALENDAR NUMBER 191
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FAV. RPT., TAB. FOR CAL., SEN.
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RPTD. OUT OF LCO
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REFERRED TO Office of Legislative Research AND Office of Fiscal Analysis 03/26/25
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FILED WITH LCO
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Joint Favorable
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PUBLIC HEARING 0304
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REF. TO JOINT COMM. ON Banking
Sponsorship breakdown
Export CSV (upgrade) →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.
Votes
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Democratic | 69 | 25 | 0 | 2 |
| Republican | 27 | 20 | 0 | 2 |
| Unaffiliated | 5 | 1 | 0 | 0 |
| Total | 101 | 46 | 0 | 4 |
| % 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 |
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Democratic | 22 | 2 | 0 | 1 |
| Republican | 10 | 1 | 0 | 0 |
| Total | 32 | 3 | 0 | 1 |
| % 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 |
Subjects
Frequently asked questions
- What is the current status of SB 1396?
- This bill has been enacted into law. Introduced February 27, 2025. Enacted.
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