DailyPay Sues New York AG James to Head Off Enforcement Action

Earned-wage access provider DailyPay LLC sued New York Attorney General Letitia James (D) to escape a pending enforcement action for allegedly violating the state’s interest rate cap.

DailyPay is asking a federal judge to declare that its product, which allows workers to get an advance on the wages they’ve earned ahead of payday, isn’t a loan under New York law, according to a complaint filed Monday in the US District Court for the Southern District of New York.

James is poised to file an enforcement action imminently, DailyPay said in its complaint.

“The OAG’s position is fundamentally flawed because DailyPay ...