AARP Maryland Sounds Alarm on Payday Risks

Annapolis, MD — AARP Maryland is calling on Governor Moore to veto House Bill 1294 (HB1294), the “Earned Wage Access and Credit Modernization” bill, which AARP warns would expose Maryland’s low-wage workers, many of them older adults, to predatory financial practices and excessive fees.

For decades, Maryland has been a national leader in protecting consumers from payday lenders and high-interest, short-term loans that trap individuals in cycles of debt. AARP Maryland contends that HB1294 would reverse that progress by allowing third-party Earned Wage Access (EWA) providers to bypass Maryland’s existing interest rate caps and consumer protections.

“While marketed as a modern financial convenience, this legislation undermines the very safeguards that have kept payday lenders out of Maryland for years,” said Hank Greenberg, State Director, AARP Maryland. “This bill creates a dangerous loophole, giving third-party providers permission to charge excessive fees to workers who can least afford it—including older adults living paycheck to paycheck.”

AARP, the nation’s largest nonprofit, nonpartisan organization dedicated to empowering Americans 50 and older, represents over 800,000 members in Maryland. The organization supports financial resiliency across all ages and has a long track record of fighting against predatory lending while advocating for equitable access to financial tools that protect—not jeopardize—consumers’ stability.

Though AARP Maryland supports employers offering no-cost early wage access as a workplace benefit, HB1294 goes further by permitting outside companies to charge fees that, when repeated, mimic the debt traps associated with payday loans. The Consumer Financial Protection Bureau has noted that EWA products “share fundamental similarities with payday lending products.”

“Maryland’s General Assembly has wisely rejected payday lending in the past. If HB1294 becomes law, it risks reviving those same harmful practices under a different name,” Greenberg added. “Older workers should not be forced to pay to get paid. We urge the Governor to stand with working Marylanders and veto this bill.”

Currently, Maryland law prohibits high fees on earned wage advances, payday loans, and other direct-to-consumer cash advances. AARP Maryland emphasizes that there is no need to weaken those consumer protections when free or low-cost alternatives already exist.

For more information on AARP Maryland’s advocacy, visit www.aarp.org/md.