Kansas-registered providers offering earned wage access must follow disclosure, payment, cancellation, complaint-handling, privacy, and repayment rules.
9-2405. Registrant requirements. A provider that is registered in the state of Kansas shall be subject to the following requirements: (a) The registrant shall provide all proceeds on a non-recourse basis and shall treat all fees and non-mandatory payments as non-recourse payment obligations. (b) The registrant shall develop and implement policies and procedures to respond to questions raised by consumers and address complaints from consumers in an expedient manner. (c) Before entering into an agreement with a consumer for the provision of earned wage access services, the registrant shall: (1) Inform the consumer of their rights under the agreement; (2) fully and clearly disclose all fees associated with the earned wage access services; and (3) clearly and conspicuously describe how the consumer may obtain proceeds at no cost to such consumer. (d) A registrant shall inform the consumer of any material changes to the terms and conditions of the earned wage access services before implementing such changes for such consumer. (e) The registrant shall provide proceeds to a consumer via any means mutually agreed upon by the consumer and registrant. (f) The registrant shall allow a consumer to cancel the use of the provider's earned wage access services at any time without incurring a cancellation fee or penalty imposed by the provider. (g) The registrant shall comply with all applicable federal, state and local privacy and information security laws. (h) If a registrant solicits, charges or receives a tip, gratuity or other donation from a consumer, the registrant shall disclose: (1) To the consumer immediately prior to each transaction that a tip, gratuity or other donation amount may be zero and is voluntary; and (2) in its agreement with the consumer and elsewhere that tips, gratuities or other donations are voluntary and that the offering of earned wage access services, including the amount of proceeds a consumer is eligible to request and the frequency with which proceeds are provided to a consumer, is not contingent on whether the consumer pays any tip, gratuity or donation or on the size of any tip, gratuity or other donation. (i) If a registrant will seek repayment of outstanding proceeds or payment of fees or other amounts owed, including voluntary tips, gratuities or other donations, in connection with earned wage access services from a consumer's depository institution, including by means of electronic funds transfer, the registrant shall do all of the following: (1) Inform the consumer when the provider will make each attempt to seek repayment of the proceeds from the consumer; (2) comply with applicable provisions of the federal electronic fund transfer act, 15 U.S.C. § 1693 et seq., and any regulations adopted thereunder; and (3) reimburse the consumer for the full amount of any overdraft or nonsufficient funds fees imposed on a consumer by the consumer's depository institution that were caused by the provider attempting to seek payment of any outstanding proceeds, fees or other payments in connection with earned wage access services, including voluntary tips, gratuities or other donations, on a date before, or in an incorrect amount from, the date or amount disclosed to the consumer. Notwithstanding the provisions of this paragraph, no provider shall be subject to the requirements of this paragraph with respect to payments of outstanding proceeds or fees incurred by a consumer through fraudulent or other unlawful means. History: L. 2024, ch. 64, § 47; July 1.