United States of America: Announced OAG lawsuit against EarnIn over alleged deceptive marketing (District of Columbia v ActiveHours Inc,d/b/a Earnin)

Description

Announced OAG lawsuit against EarnIn over alleged deceptive marketing (District of Columbia v ActiveHours Inc,d/b/a Earnin)

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.

Original source

Scope

Policy Area
Consumer protection
Policy Instrument
Fair marketing and advertising practice requirement
Regulated Economic Activity
digital payment provider (incl. cryptocurrencies)
Implementation Level
subnational
Government Branch
judiciary
Government Body
court

Complete timeline of this policy change

Hide details
2024-11-19
under deliberation

On 19 November 2024, the Attorney General of Columbia filed a lawsuit against a mobile application-…

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