Fintech EarnIn Sued by DC Attorney General Over 300% Rates (1)

Financial-technology firm Activehours Inc., which does business as EarnIn, lures customers in with false promises of an early payday with no mandatory fees or interest costs while actually charging consumers rates of more than 300%, the attorney general of Washington, DC, alleged in a lawsuit.

EarnIn claims that consumers can access their wages “within minutes of earning it,” but to secure those wages almost immediately, consumers must pay a mandatory fee, according to the complaint filed in the Superior Court of the District of Columbia. With that fee alone, the average interest rate on EarnIn’s loans exceed 300%, the ...