On 19 November 2024, the Attorney General of Columbia filed a lawsuit against a mobile application-based financial technology company, EarnIn, for deceptively marketing high-interest loans to over 20’000 consumers. The lawsuit alleges that EarnIn falsely advertised its "earned wage advance" product as a fee-free, interest-free cashout. However, it involved high "lightning speed" fees and interest rates of over 300%, well above the District of Columbia's 24% cap. Additionally, EarnIn allegedly operated without the necessary lending licence. The lawsuit seeks an injunction against the alleged illegal practices, impose restitution and civil penalties, and secure a permanent injunction to protect consumers.
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