CHAPTER
2.5. Wage-Based and Work-Based Wage-Based, Work-Based, and Income-Based Advances
22480.
(a) It is the intent of the Legislature that this act chapter accomplish all of the following:(1) Protect the interests of workers in this state who avail themselves of wage-based and work-based advances. advances and the interests of consumers in this state who avail themselves of income-based advances.
(2) Provide for the safe, efficient, and orderly conduct of the business of providing wage-based and work-based wage-based, work-based, and income-based advances.
(3) Exempt wage-based and work-based advance licensed providers of wage-based, work-based, and income-based advances from the California Deferred Deposit Transaction Law (Division 10 (commencing with Section 23000)), the Money Transmission Act (Division
1.2 (commencing with Section 2000)), and certain provisions of the California Financing Law (Division 9
(commencing with Section 22000)) if the provider delivers wage-based or work-based providers deliver wage-based, work-based, and income-based advances in accordance with a contract that complies with this chapter.
(4) Maintain public confidence in providers of wage-based and work-based wage-based, work-based, and income-based advances and foster the growth of those advances as an alternative to other high-cost
higher cost options.
(5) Prohibit both employers and persons that retain independent contractors from directly profiting from workers’ use of wage-based and work-based advances.
(6) Establish a system of licensure administered by the Commissioner of Business Oversight that will allow providers of wage-based and work-based
wage-based, work-based, and income-based advances to engage in certain activities not otherwise authorized under the California Financing Law and Deferred Deposit Transaction Law.
(b) It is not the intent of the Legislature to modify the applicability of this division with respect to a product or service not specifically regulated by this chapter.
22481.
For purposes of this chapter, the following definitions shall apply:(a) “Consumer” means a natural person.
(b) “Clear and conspicuous” or “clearly and conspicuously” means in larger type than the surrounding text, in contrasting type, font, or color to surrounding text of the same size, or set off from surrounding text of the same size by symbols or other marks, in a manner that effectively calls attention to the language.
(a)
(c) “Delivery” means the delivery of funds to a worker or consumer by a provider.
(b)
(d) (1) “Obligor” means either of the following:
(A) An employer.
(B) A person, including an independent contractor, who is not an
employer but who is contractually obligated to pay the
a worker or consumer a sum of money on an hourly, project-based, piecework, or other basis for labor or services provided by the worker or consumer to or on behalf of the other person.
(2) “Obligor” does not include a customer of an obligor or other third party whose obligation to make a payment to a worker or consumer is based solely on the worker’s or consumer’s agency relationship with the obligor.
(c)
(e) “Payment” means money or other consideration paid by a worker to a provider that is directly related to the provision of wage-based or work-based advances, including, but not limited to, a payment for an expedited transfer. either of the following:
(1) Money or other consideration paid by a worker to a provider that is related to the provision of wage-based or work-based advances, including, but not limited to, a payment for an expedited transfer.
(2) Money or other consideration paid by a consumer to a provider that is related to the provision of income-based advances, including, but not limited to, a payment for an expedited transfer.
(d)
(f) “Payroll services provider” means a person that assists a business in meeting its payroll administration obligations by collecting information on employees and independent contractors, hours worked, pay rates, deductions, and other payroll-related data from the business and uses that information to prepare paychecks, wage statements, and
related reports for the employees employed by or the independent contractors retained by the business.
(e)
(g) “Provider” means a person that is engaged in the business of delivering wage-based or work-based wage-based, work-based, or income-based advances. “Provider” does not include a payroll services provider, unless that payroll services provider is separately engaged in the business of delivering wage-based or work-based
advances.
(f)
(h) (1) “Providing wage-based or work-based advances” means the delivery to a worker of a wage-based advance or a work-based advance.
(2) “Providing income-based advances” means the delivery to a consumer of an income-based advance.
(g)
(i) (1) “Wage-based advance” or “work-based advance” means funds advanced to a worker by a provider that are based on wages or compensation the worker has represented, and that the provider has reasonably determined, have been earned but have not, at the time of the advance, been paid to the worker for work performed for or on behalf of an obligor. obligor or obligors.
(2) “Income-based advance” means funds advanced to a consumer by a provider that are based on income the consumer has represented, and the provider has reasonably determined, have accrued to the benefit of the consumer but have not, at the time of the advance, been paid to the consumer. An income-based advance may be based in part on wages or compensation that have been earned by the consumer but may not be based solely on wages or compensation. An advance based solely on wages or compensation shall be deemed a wage-based or work-based advance.
(h)
(j) “Worker” means a natural
person who has earned wages or compensation in this state as an employee or an independent contractor.
22482.
(a) Division 1.2 (commencing with Section 2000) and Division 10 (commencing with Section 23000) shall not apply to providing a licensed provider making a wage-based advance or a work-based advance to a worker. worker or making an income-based advanced to a consumer.(b) Chapter 2 (commencing with Section 22200), Chapter 3 (commencing with Section 22500), Chapter 3.5 (commencing with Section 22680),
Article 2 (commencing with Section 22050) of Chapter 1, and Article 2 (commencing with Section 22750) and Article 3 (commencing with Section 22780) of Chapter 4, shall not apply to a licensed provider of wage-based and work-based advances to workers. making a wage-based advance or a work-based advance to a worker or an income-based advance to a consumer.
(c) A licensed provider’s requirement that a worker make a payment authorized by this chapter to the provider when the worker opts to
use the services of a provider shall not be a violation of Section 212 of the Labor Code if, before making the payment to the provider, the worker is informed clearly and conspicuously in writing writing, before the worker incurs any obligation to the provider, of the right to receive the full amount of the worker’s wages, without discount, if the worker waits until the regular payday.
22483.
A provider shall comply with all of the following requirements:(a) A provider shall permit a worker to cancel participation in a wage-based or work-based advance program or a consumer to cancel participation in an income-based advance program at any time without incurring a charge for doing so.
(b) Before entering into a contract to provide the a worker with a
wage-based or work-based advance, advance or a consumer with an income-based advance, a provider shall provide the worker or consumer, as applicable, with a written paper or electronic document, and the worker or consumer shall acknowledge receipt of that document. That document shall meet all of the following requirements:
(1) Inform the worker or consumer of the worker’s or consumer’s rights under the program and include instructions for how to cancel participation in the program.
(2) Include a statement at the top of the document that document, which is comprised of two separate paragraphs and reads as follows:
“We cannot sue you, or report you to a credit reporting agency
or your employer if we are unable to collect an amount due for an advance we provide. If
If
you have questions about the services we perform, you may contact us at [telephone or email address at which the provider may be reached]. If you wish to report a complaint about [Name of provider], you may contact the California Department of Business Oversight at 866-275-2677, or file your complaint online at https://dbo.ca.gov/file-a-complaint/.”
(3) Be separate from any other agreement the worker or consumer is asked to sign.
(4) Be written clearly and conspicuously in a minimum 12-point type, or, if provided electronically, be
easily legible.
(5) Be written in language intended to be understood by a layperson.
(6) A worker or consumer shall be given the option of receiving a hard copy or an electronic copy of this document at a designated address when entering into an agreement to receive wage-based or work-based wage-based, work-based, or income-based advances.
(7) If a worker accesses wage-based or work-based advances
or a consumer accesses income-based advances via an electronic application, the document shall also be provided with by means of an in-app link to this document, link, and the document shall remain accessible to the worker or consumer via the in-app link at all times the contract is in place.
(c) A provider shall deliver funds to the worker or consumer via any means mutually agreeable to the worker or consumer and the provider.
(d) (1) Except as provided in paragraph (2), a provider shall not require a worker or consumer, as applicable, to open an account at a particular depository institution as a condition of providing a wage-based or work-based wage-based, work-based, or
income-based advance.
(2) A provider may require a worker or consumer to open an account at a particular depository institution if neither the worker nor an obligor worker, consumer, nor an obligor is required to pay a fee or charge to open or maintain the account, and the account is fully insured for the worker’s or consumer’s benefit by the Federal Deposit Insurance Corporation.
(3) (A) If a provider requires a worker to open an account at a particular depository institution, institution as a condition of receiving a wage-based or work-based advance, the provider shall ensure that a worker receives the worker’s wages or compensation, net of any funds advanced by the provider in that pay period, in an account that allows the worker to initiate transactions, including writing checks or initiating debit card or automated clearinghouse transactions. The provider shall ensure that those funds are provided in the worker’s account in a manner at least as timely as those wages or compensation would have been available to the worker if that worker had not entered into an agreement with the provider
for wage-based or work-based advances.
(B) If a provider requires a consumer to open an account at a particular depository institution as a condition of receiving an income-based advance, the provider shall ensure that the consumer receives the consumer’s income, net of any funds advanced by the provider, in an account that allows the consumer to initiate transactions, including writing checks or initiating debit card or automated clearinghouse transactions. The provider shall ensure that those funds are provided in the consumer’s account in a manner at least as timely as those funds would have been available to the consumer if that consumer had not entered into an agreement with the provider for income-based advances.
(e) (1) During an
applicable time period, payments, whether required by the provider or made at the worker’s or consumer’s option, received by a provider from a worker for wage-based or work-based advances or from a consumer for income-based advances shall not exceed an average of fifteen dollars ($15) per month or 7.5 percent of the aggregate amount advanced, whichever is less. meet one or both of the following criteria:
(A) Payments received do not exceed the lesser of fifteen dollars ($15) per month on average or 7.5 percent of the aggregate amount advanced.
(B) Payments are collected as membership or subscription fees memorialized in the contract between the provider and the worker, consumer, or obligor and do not exceed twelve dollars ($12) per month.
(2) A provider shall not require payments totaling more than fifteen dollars ($15) in any month.
(3) The payments described in paragraph (1) include all
payments received by the provider in connection with wage-based or work-based wage-based, work-based, or income-based advances, including any fees for expedited delivery of funds permitted by paragraph (2) of subdivision (m) and any fees charged by the provider to make automatic wage-based or work-based advances to the worker. worker or automatic income-based advances to the consumer.
(4) For purposes of this subdivision and subdivision (j), “applicable time period” means either of the
following:
(A) The period of time beginning January 1 and ending June 30.
(B) The period of time beginning July 1 and ending December 31.
(5) (A) Except as provided in subparagraph (B), a provider shall comply with the requirements of this subdivision by conducting a reconciliation of each worker’s or consumer’s account at the end of the applicable time period and refunding any excess payment received during an applicable time period within 30 days of the end of the applicable time period.
(B) If a worker
or consumer terminates the worker’s contract with a provider, the provider shall conduct the reconciliation required by this section within 30 days of termination.
(C) This paragraph does not prohibit a provider from conducting reconciliations and issuing refunds more frequently or from instituting alternative processes to comply with this subdivision, provided that those processes result in full compliance with this subdivision within 30 days of the end of each applicable time period or within 30 days of the termination of a worker’s or consumer’s contract.
(f) The provider
shall not receive an additional payment to defer collection of the amount advanced or defer an additional required payment beyond the worker’s payday. payday or beyond the date that the consumer is contractually obligated to repay the consumer’s income-based advance.
(g) A provider shall not solicit a worker to accept a wage-based or work-based advance, or solicit a consumer to accept an income-based advance, increase the amount of that
an advance, or delay the delivery of an advance, for the purpose of increasing the total charge the provider may collect under subdivision (e).
(h) A provider shall not make more than three wage-based or work-based advances to a worker or more than three income-based advances to a consumer per week.
(i) A contract between a provider and an obligor shall not contain a provision that limits the number of pay periods during which the worker may utilize wage-based or work-based advances.
(j) (1) (A) Except as provided in paragraph (2), subparagraph (B), a wage-based or work-based advance shall not exceed 50 percent of the gross amount owed by an obligor to a worker as of the date and time of the worker’s request.
(2)
(B) A provider may advance an amount to a worker that is larger than the maximum allowed pursuant to paragraph (1)
subparagraph (A) up to two separate times in an applicable time period, as defined in paragraph (3) (4) of subdivision (e).
(2) A provider of income-based advances shall not advance more than three hundred dollars ($300) in the aggregate to a consumer per week and shall not make a new advance to a consumer if that advance would result in the consumer having more than $300 in total advances unpaid and outstanding at any given time.
(k) Wage-based advances and work-based
Wage-based, work-based, and income-based advances shall be provided exclusively on a nonrecourse basis. For purposes of this division, nonrecourse basis means all of the following:
(1) (A) Except as provided in paragraph (2) of subdivision (a) of Section 22484, a provider shall not attempt to collect, either directly or through a third party, or sell or transfer to a third party the right to collect funds from a worker in connection with provision of wage-based or work-based advances. A provider is not in violation of this paragraph by using of a funds transfer system or vendor.
(B) Except as provided in subdivision (a) of Section 22484.5, a provider shall not attempt to collect, either directly or through a third party, or sell or transfer to a third party the right to collect funds from a consumer in connection with the provision of income-based advances.
(C) A provider does not violate this subdivision by using a funds transfer system or vendor.
(2) A provider shall not report a worker’s repayment or failed repayment of a wage-based or work-based advance to any person other than the worker,
worker and shall not report a consumer’s repayment or failed repayment of an income-based advance to any person other than the consumer, including, but not limited to, the following:
(A) A consumer credit reporting agency, as that term is defined in subdivision (d) of Section 1785.3 of the Civil Code.
(B) An investigating consumer reporting agency, as that term is defined in subdivision (d) of Section 1786.2 of the Civil Code.
(C) A consumer reporting agency, as that term is defined in subdivision (f) of Section 1681a of Title 15 of the United States Code.
(3)A worker shall not be held liable for a failed repayment of a wage-based or work-based advance if the obligor fails to meet its payroll obligation to the provider or to the worker.
(3) If an obligor fails to meet its payroll obligation or contractual obligation to a worker or consumer or fails to meet its contractual obligation to a provider, the worker or consumer shall not be held liable for any resulting failed repayment of a wage-based, work-based, or income-based advance. However, nothing in this division shall limit the remedies available against the obligor.
(4) (A) A provider shall not initiate a legal proceeding against a worker under a cause of action that arises from, or is related to, a wage-based advance or work-based advance, including, but not limited to, an alleged breach of a contract between the worker and the provider.
(B) A provider shall not initiate a legal proceeding against a consumer under a cause of action that arises from, or is related to, an income-based advance, including, but not limited to, an alleged breach of a contract between the consumer and the provider.
(l) (1) If a provider requires a worker or consumer to make a payment in exchange for providing a wage-based or work-based wage-based, work-based, or income-based advance, that payment shall not vary based on the delivery method that is used to provide a wage-based or work-based
the advance. For purposes of this paragraph, “delivery method” includes, but is not limited to, an automated clearinghouse or reloadable card.
(2) A payment described in paragraph (1) may vary based on the speed with which the wage-based or work-based advance is provided. A payment required for an expedited transfer shall be reasonable and proportional to the costs directly associated with the expedited transfer. A provider may not delay the delivery of a wage-based or work-based
an advance except for a legitimate business purpose that shall not include encouraging a worker or consumer to pay an additional fee for an expedited transfer.
(3) A payment may either be required by the provider as a condition for providing a wage-based or work-based an advance or may be optional and in an amount determined by the worker. worker or consumer.
(m) (1) (A) Before making a wage-based or work-based advance, a provider shall make a reasonable determination of the wages or compensation that have been earned but have not been paid to a worker at the date and time that worker requests a wage-based or work-based advance. For purposes of complying with this requirement, a provider shall not rely exclusively on the amount of wages or compensation previously paid to the worker by an obligor, representations made by the worker, or a combination of these methods.
(2)For purposes of complying with paragraph (1), a provider shall not rely only on the amount of wages or compensation previously paid to the worker by an obligor,
representations made by the worker, or a combination of these methods.
(B) Before making an income-based advance, a provider shall make a reasonable determination of the income that has accrued to the benefit of, but has not been paid to, a consumer at the date and time that consumer requests an income-based advance. For purposes of complying with this requirement, a provider shall rely, at a minimum, on the income previously received by the consumer and representations made by the consumer.
(2) When making an advance, a provider shall record in its system of record whether that advance is wage-based or work-based or is income-based.
(3) A provider shall not have a wage-based or work-based advance and an income-based advance outstanding with any individual at the same time.
(n) (1) A provider may offer a worker or consumer additional services, which may either be bundled with wage-based or work-based wage-based, work-based, or income-based advance services at no additional charge to a worker or consumer or may be offered to the worker
or consumer
separately from wage-based or work-based
advance services. The following shall apply to any additional service offered at an additional charge by a provider to a worker who opts into receiving a wage-based or work-based advance: advance or to a consumer who opts into receiving an income-based advance:
(A) The provider shall offer the additional service on an opt-in basis.
(B) The provider shall clearly and prominently conspicuously, before the worker or the consumer has incurred any obligation to the
provider,
disclose that the worker is not required to purchase any additional service in order to receive wage-based or work-based advances. advances and that the consumer is not required to purchase any additional service in order to receive income-based advances.
(C) The provider shall not market or sell the additional service as part of a package or bundle of services that includes wage-based or work-based wage-based, work-based, or income-based advances.
(2) The restrictions in subparagraphs (A) to (C), inclusive, of paragraph (1) shall not apply to offers of additional services that are bundled with wage-based or work-based advance services at no additional charge to a worker. worker or that are bundled with income-based advance services at no additional charge to a consumer.
(o) A provider shall not do any of the following:
(1) Disclaim any warranties, express or implied, when entering into a contract with a worker for the provision of wage-based or
work-based advances. advances or when entering into a contract with a consumer for the provision of income-based advances.
(2) Change (A) Except as provided in subparagraph (B), change its contract with a worker for the provision of wage-based or work-based advances or change its contract with a consumer for the provision of income-based advances without summarizing the change in a plain-language
disclosure to the worker or consumer and obtaining the worker’s or consumer’s agreement to the change.
(B) A provider may terminate its contract with a worker or consumer, on a prospective basis and after all advances outstanding at the time of the change have been concluded, if the consumer or worker does not agree to the change.
(3) Include in its contract with a worker for the provision of wage-based or work-based advances or in its contract with a
consumer for the provision of income-based advances an integration, merger, or other clause limiting the ability of the worker to introduce evidence outside the contract in a legal proceeding concerning the contract.
(4) Include in its contract with a worker
or consumer a hold harmless clause.
22484.
(a) A provider may offer wage-based or work-based advances through any of the following:(1) A contractual arrangement with an obligor in which the funds advanced to the worker by the provider during a pay period are deducted from the worker’s next paycheck. All of the following conditions shall apply to a contractual arrangement described in this paragraph.
(A) The obligor shall not directly pass on to the worker the cost of offering the wage-based or work-based advance, but the obligor may offer to the worker an optional service
package for which a fee is charged by the provider. The obligor shall not profit from the fees paid by workers for the optional service package.
(B)The contract between a provider and obligor may allow the provider to offer services separate from wage-based or work-based advances and to charge workers separately for those services. The obligor shall not profit from the charges to workers for those services. A provider shall not condition the availability of a wage-based or work-based advance on a worker’s willingness to purchase a separate service.
(C)
(B) The contract shall prohibit the obligor from sharing payments with or receiving other compensation from the provider.
(2) A contractual arrangement with a worker that permits the provider to be repaid directly by the worker via a means mutually acceptable to the worker and provider. All of the following conditions shall apply to a contractual arrangement described in this paragraph.
(A) A (i) Except as provided in clause (ii), a provider shall notify a
worker, at least two days before the date of the payment is due, of the total amount due and the date on which the provider will attempt to collect that amount from the worker. The provider shall make the notification by any means mutually acceptable to the worker and the provider. However, the provider shall not provide that notification solely via a provider’s mobile application, if that application requires a worker to provide a password or similar credentials to access the notification.
(ii) A provider that advances funds to a worker less than two days before that worker’s next payday shall, at the time it advances funds to the worker, notify the worker of the total amount due and the date on which
the provider will attempt to collect that amount from the worker.
(iii) The provider shall make the notification required by clause (i) or (ii) clearly and conspicuously and by any means mutually acceptable to the worker and the provider, except that the provider shall not make that notification solely via a provider’s mobile application if that application requires a worker to provide a password or similar credentials to access the notification.
(B) A provider that seeks repayment from a worker through the worker’s deposit account shall take best efforts to ensure that there are sufficient funds in the account before attempting to initiate a payment transfer from that account.
(C) (i) Except as provided in clause (ii), a provider
that seeks repayment from a worker through the worker’s deposit account shall not initiate a payment transfer from the worker’s deposit account after the provider has attempted to initiate two consecutive failed payment transfers from that account. For purposes of this subparagraph, a payment transfer shall be deemed to have failed when it results in a return indicating that the worker’s account lacks sufficient funds.
(ii) A provider may initiate additional payment transfers from a consumer’s
worker’s
account after a failed payment transfer only if the worker expressly authorizes the each additional payment transfer. Any agreement, blanket authorization, or preauthorization in contravention of this clause shall be void.
(D)A provider may contract with a worker to provide services that are separate from and unrelated to wage-based or work-based advances and may charge separately for those separate and unrelated services. However, a provider shall not condition the availability of a wage-based or work-based advance on a worker’s willingness to purchase a separate or unrelated service.
(E)
(D) A provider shall not charge a worker a fee for an unsuccessful payment transfer from that worker’s deposit account.
(F)
(E) The provisions of this paragraph shall also apply to the collection of a required payment under subdivision (e) of Section 22483.
(b) A contract described in subdivision (a) may allow the provider to offer services separate from wage-based or work-based advances and to charge workers separately for those services. A provider shall not condition the availability of a wage-based or work-based advance on a worker’s willingness to purchase a separate service. An obligor that enters into a contract with a provider pursuant to paragraph (1) of subdivision (a) shall not profit from a payment made by a worker for a wage-based or work-based advance or for a separate service offered by the provider to that worker.
(b)
(c) An obligor that is notified by a provider that it has entered into an arrangement described in subdivision (a) with a worker may, with the worker’s consent, share information with the provider pertaining to the obligor’s accrued and expected obligations to the worker.
(c)
(d) Additional services provided pursuant to subparagraph (B) of paragraph (1) of subdivision (a) and subparagraph (D) of paragraph (2) of subdivision (a) are subject to Section 22154.
(e) The following shall apply to a provider that offers wage-based or work-based advances pursuant to an arrangement described in paragraph (1) of subdivision (a):
(1) The obligor is not required to reimburse the provider for an advance, including a payment thereon, until three business days have elapsed after the date of the obligor’s scheduled payday, salary, wage, or contractual payment date.
(2) If an obligor becomes aware of an irregularity, discrepancy, or error in an advance claimed by the provider, all of the following shall apply:
(A) The obligor shall provide notice to the provider of the irregularity, discrepancy, or error.
(B) Upon receipt of the notice, the provider shall expeditiously investigate the irregularity, discrepancy, or error and take any action necessary to prevent loss to the obligor or any affected worker.
(C) The obligor shall remain obligated to reimburse the provider for funds owed pursuant to paragraph (1) of subdivision (a), except that the obligor may withhold funds in an amount it believes subject to irregularity, discrepancy, or error.
(D) Liability shall not be incurred by an obligor that withholds funds pursuant to this paragraph in good faith. An obligor that withholds funds in bad faith shall be liable to the provider for the provider’s cost of funds, plus liquidated damages of 10 percent for the cost of funds, for the period during which the obligor withholds those funds.
(3) The remedies set forth in this subdivision are not exclusive.
(f) A provider shall immediately notify the commissioner in writing of all of the following:
(1) A notice provided pursuant to subparagraph (A) of paragraph (2) of subdivision (e).
(2) Any other notice, complaint, or claim of irregularity, discrepancy, or error made by a worker, a consumer, or a financial institution to the provider.
(3) The manner in which the notice, complaint, or claim was resolved.
22484.5.
(a) A provider may offer income-based advances through a contractual arrangement with a consumer that permits the provider to be repaid directly by the consumer via a means mutually acceptable to the consumer and provider. All of the following conditions shall apply to a contractual arrangement described in this subdivision:(1) Except as provided in paragraph (2), a provider shall notify a consumer, at least two days before the date the payment is due, of the total amount due and the date on which the provider will attempt to collect that amount from the consumer.
(2) A provider that advances funds to a consumer less than two days before that the date on which the provider
will attempt to collect that amount from the consumer shall, at the time it advances funds to the consumer, notify the consumer of the total amount due and the date on which the provider will attempt to collect that amount from the consumer.
(3) The provider shall make the notification required by paragraph (1) or (2) clearly and conspicuously, by any means mutually acceptable to the consumer and the provider, except that the provider shall not provide that notification solely via a provider’s mobile application, if that application requires a consumer to provide a password or similar credentials to access the notification.
(b) A provider that seeks repayment from a consumer through the consumer’s deposit account shall take best efforts to ensure that there are sufficient funds in the account before attempting to initiate a payment transfer from that account.
(c) (1) Except as provided in paragraph (2), a provider that seeks repayment from a consumer through the consumer’s deposit account shall not initiate a payment transfer from the consumer’s deposit account after the provider has attempted to initiate two consecutive failed payment transfers from that account. For purposes of this paragraph, a payment transfer shall be deemed to have failed when it results in a return indicating that the consumer’s account lacks sufficient funds.
(2) A provider may initiate additional payment transfers from a consumer’s account after a failed payment transfer only if the consumer authorizes each additional payment transfer. Any agreement, blanket authorization, or preauthorization in contravention of this paragraph shall be void.
(d) A provider shall not charge a consumer a fee for an
unsuccessful payment transfer from that consumer’s deposit account.
(e) The provisions of this section shall also apply to the collection of a required payment under subdivision (e) of Section 22483.
(f) A contract described in subdivision (a) may allow the provider to offer services separate from income-based advances and to charge consumers separately for those services. A provider shall not condition the availability of an income-based advance on a consumer’s willingness to purchase a separate service.
(g) An obligor that is notified by a provider that it has entered into an arrangement described in subdivision (a) with a consumer may, with the consumer’s consent, share information with the provider pertaining to the obligor’s accrued and expected obligations to the consumer.
(h) Additional services provided pursuant to subdivision (f) are subject to Section 22154.
22485.
(a) A provider shall develop and implement policies and procedures to both respond respond, in an expedient manner, to questions raised by workers and consumers and to address, in an expedient manner, complaints from workers. workers and consumers.(b) (1) Upon receipt of a complaint from a worker, worker or consumer, a provider shall deliver to the worker or consumer the following statement:
“If you have questions about the services we perform, you may contact us at [telephone or email address at which the provider may be reached]. If you wish to report a complaint about [Name of provider], you may contact the California Department of Business Oversight at 866-275-2677, or file your
complaint online at https://dbo.ca.gov/file-a-complaint/.”
(2) The provider shall shall, clearly and conspicuously, provide the statement described in paragraph (1) in no smaller than 12-point type, or, if provided electronically, be easily legible.
(3)For purposes of this subdivision, “receipt of a complaint from a worker” includes receiving a review from a worker that is linked to the provider’s mobile application on a mobile application platform, including, but not limited to, a platform offered by an online or mobile device-accessible application store or comparable medium of which the provider should reasonably be aware.
22486.
A provider’s annual report submitted to comply with Section 22159 shall include the following information related to wage-based or work-based wage-based, work-based, and income-based advances provided to workers and consumers in the most recently completed calendar year:(a) The total number of workers and consumers served.
(a)
(b) Gross revenue received. For purposes of this subdivision, the provider shall distinguish between revenue received from workers and workers, revenue received from obligors for providing services to their workers. workers and consumers, and revenue received from consumers.
(b)
(c) The total number of wage-based or work-based advances. wage-based, work-based, and income-based advances made.
(d) The number of advances made per worker or consumer by quintile, as well as the minimum, maximum, mean, and median number of advances made per worker or consumer.
(c)
(e) The total dollar amount of wage-based or work-based advances.
wage-based, work-based, and income-based advances made.
(d)The total number of workers served.
(e)The average and standard deviation of the number of wage-based or work-based advances per worker.
(f) The dollar amount of advances made per worker or consumer by quintile, as well as the minimum, maximum, mean, and median dollar amount of advances made per worker or consumer.
(f)
(g) The total number of workers who requested advances described in paragraph (2) of subdivision (i) of Section 60005. subparagraph (B) of paragraph (1) of subdivision (j) of Section 22483 and the total number of these advances made.
(h) The dollar amount of advances described in subparagraph (B) of paragraph (1) of subdivision (j) of Section 22483 made per worker by quintile, as well as the
minimum, maximum, mean, and median dollar amount of these advances made per worker.
(g)
(i) (1) The total number of failed payment transfers as described in clause (i) of subparagraph (C) of paragraph (2) of subdivision (a) of Section 60006.
22484.
(2) The total number of failed payment transfers as described in paragraph (1) of subdivision (c) of Section 22484.5.
(h)
(j) (1) The total number of workers affected by at least one failed payment transfer as described in
clause (i) of subparagraph (C) of paragraph (2) of subdivision (a) of Section 60006. 22484.
(2) The total number of consumers affected by at least one failed payment transfer as described in paragraph (1) of subdivision (c) of Section 22484.5.
(3) To comply with paragraphs (1) and (2), the provider shall distinguish between failed payment transfers initiated via automated clearinghouse and failed payment transfers initiated via a debit card processing
network.
(i)
(k) (1) For workers affected by at least one failed payment transfer as described in clause (i) of subparagraph (C) of paragraph (2) of subdivision (a) of Section 60006, the average and standard deviation of
22484, the number of failed payment transfers per worker by quintile, as well as the minimum, maximum, mean, and median number of failed payment transfers per worker. worker and the percentage of initial failed payment transfers that result in a subsequent failed payment transfer.
(2) For consumers affected by at least one failed payment transfer as described in paragraph (1) of subdivision (c) of Section 22484.5, the minimum, maximum, mean, and median number of failed payment transfers per consumer, and the percentage of initial failed payment transfers that result in a subsequent failed payment transfer.
(j)The total dollar amount of payments received from workers.
(k)
(l) (1) The total number of wage-based and work-based advances wholly uncollected after the worker’s payday, and the total dollar amount of those advances.
(2) The total number of income-based advances wholly uncollected after the date on which the consumer’s account is contractually scheduled to be debited and the total dollar amount of those advances.
(l)
(m) (1) The total number of wage-based and work-based advances partially uncollected after the worker’s payday, and the total dollar amounts uncollected for those advances.
(2) The total number of income-based advances partially uncollected after the date on which the consumer’s account is contractually scheduled to be debited and the total dollar amount of those advances.
(m)
(n) The information required by subdivision (f) of Section 22112.5.
(n)
(o) Any other information the commissioner may reasonably request
requests in connection with the commissioner’s responsibilities under this division.
22487.
(a) A provider shall comply with all laws, rules, and orders regarding the duty to safeguard a consumer’s personal information, including, but not limited to, Title 1.81 (commencing with Section 1798.80) of Part 4 of Division 3 of the Civil Code.(b) A provider shall comply with all requirements of the California Consumer Privacy Act of 2018 (Title 1.81.5 (commencing with Section 1798.100) of Part 4 of Division 3 of the Civil Code).
(c) A provider shall not sell, as defined in subdivision (t) of Section 1798.140 of the Civil Code, share, or otherwise disclose personal information, as defined by subdivision
(o) of Section 1798.140 of the Civil Code, that is solicited or collected from a worker for the purpose of providing wage-based or work-based advances pursuant to this division, division or that is collected from a consumer for the purpose of providing income-based advances pursuant to this division, except to the extent that the sharing or disclosure is intended to, and is reasonably necessary to, effect the transaction requested by the worker. worker or consumer.
(d) A provider shall not utilize geolocation data,
however derived, to either present information to a worker regarding the availability of a wage-based or work-based advance or advance, to present information to a consumer regarding the availability of an income-based advance, to invite a worker to seek or obtain information regarding a wage-based or work-based advance. advance, or to invite a consumer to seek or obtain information regarding an income-based advance.
(e) (1) Subject to paragraph (2), a provider shall not share payments or pay other compensation to an obligor.
(2) Upon application to the commissioner by a provider, the commissioner may waive the prohibition of paragraph (1) on paying compensation to an obligor if the commissioner makes a determination that doing so will not result in limiting price competition among providers for wage-based and work-based advances or otherwise undermine the protections provided to workers and consumers under this chapter.
(f) A provider may share with a worker’s
or consumer’s employer or other payment obligor aggregate information on wage-based or work-based wage-based, work-based, or income-based advances provided by the provider to workers or consumers to whom the employer or obligor owes payments, but that information shall not be shared in any form that identifies an individual worker or consumer to the employer or obligor.
22488.
(a) A person licensed under the California Deferred Deposit Transaction Law (commencing with Section 23000) shall not provide wage-based or work-based wage-based, work-based, or income-based advances or be licensed as a provider under this chapter.(b) A provider shall not pay or receive compensation to or from a person licensed under the California Deferred Deposit Transaction Law (Division 10 (commencing
with Section 23000). 23000)).
22489.
(a) The commissioner may, by rule, regulation, or order require a provider to provide disclosures to workers, workers and consumers, including:(1) Comparisons between hypothetical transactions under a contract for wage-based or work-based wage-based, work-based, or income-based advances and hypothetical transactions under other types of
financing.
(2) Retrospective cost and rate calculations.
(3) Cost and rate calculations based upon an average transaction for each provider.
(4) Any other cost and rate disclosures.
(5) Information concerning the worker’s or consumer’s rights under this chapter.
(b) This section shall not be construed to limit the commissioner’s authority under Section 22150 with respect to a provider.
22490.
(a) This chapter shall remain in effect only until January 1, 2023, and as of that date is repealed.(b) This chapter shall become operative on July 1, 2020.