Popular Apps for Early Payday Draw Critics Citing 330% Rate Risk (1)

To keep from falling behind on his bills, Brandon Chenault turned to what he considered a low-risk option: an app that promised to give him a cash advance on his paycheck without charging interest.

The Fayetteville, Arkansas, security guard said the app, EarnIn, was initially a “godsend” that he used sparingly. But when his husband had a medical emergency and lost his job, they turned to the product more and more, advancing wages even as less money was coming in. Within a year, Chenault, 36, found himself trapped in a constant loop of borrowing.

“I felt like I had completely lost control of the situation, ...