Maryland Gov. Wes Moore recently signed into law two new consumer protection bills.
One is the Earned Wage Access bill (SB94), which closes regulatory loopholes for app-based payday loans that allow workers to borrow against their wages before the end of the payroll cycle. This legislation follows a 2024 study that revealed Maryland consumers paid over $35 million in fees on 5.5 million transactions using these apps over the previous five years. In addition, the new law officially bans the exploitative practice of lender “tipping.”
It also halts “dark-pattern pricing,” where manipulative app designs pressure consumers of limited means into paying hidden fees disguised as tips that average more than $280 per user. Further, the bill reinstates protections that hold Earned Wage Access lenders to the same standard as other lenders, prohibiting false advertising and discrimination based on race, age, and sex.
“New technology should not be a back door for old, harmful practices to re-emerge. Workers are now able to access their earned wages without sacrificing transparency, fairness, or legal protections,” Department of Labor Secretary Portia Wu said.
The other is the expansion of the 2023 Access to Banking Act, which was signed earlier this month. This bill scales the capabilities of the Maryland Community Investment Venture Fund, which provides grants to help community banks and credit unions partner with financial technology firms to support low- to moderate-income communities.
This legislation expands the fund’s mandate so it can strengthen not just small businesses, but also the financial health of individual consumers across low- to moderate-income communities.
Specifically, it creates a collaborative approach to help unbanked and underbanked Marylanders access the financial system, and it promotes the development of Maryland Opportunity Accounts. The state will use fee credits to encourage banks and credit unions to offer these affordable deposit accounts to help more Marylanders access the financial system.
“This Access to Banking Act update transforms a successful, nationally-recognized model into sustainable, long-term infrastructure for financial inclusion,” Francesca Ioffreda, chief innovation officer for the State of Maryland, said. “It allows the State to leverage innovative technology to break down barriers and expand access to opportunities for Maryland families.”
The bills are supported by several consumer groups, including the CASH Campaign of Maryland and Economic Action Maryland.
“By officially banning tips, the Earned Wage Access bill gives consumers the strong protections they need to prevent them from incurring hidden costs when accessing their own wages and addresses the unintended consequences of previous exemptions from Maryland’s anti-discrimination laws. Furthermore, the Access to Banking bill expands the Fund to explicitly include consumers and recognize that families are often the most affected by limited access to safe and affordable banking. The push for new Maryland Opportunity Accounts will help families avoid high fees, safely receive income, and build long-term financial stability,” the groups said in a joint statement.