Cohen & Malad, LLP class action attorneys have filed a lawsuit against Activehours, Inc. the parent company of mobile lending application Earnin. The lawsuit alleges Activehours engaged in deceptive marketing practices to lure lower wage earners to use the Earnin app to get small cash advances from their paychecks by promising they would not be charged overdraft fees from their banks or credit unions. Earnin app customers claim the company falsely markets itself as a service that allows users to avoid interest and bank fees. Court documents indicate that Earnin made withdrawals on customers’ bank accounts when funds were not available which caused customers to incur overdraft fees.

Attorneys General Investigating Earnin App

Media reports indicate several attorneys general are investigating Earnin cash advance app’s practices for what is believed to be payday lending practices.

I’ve used Earnin & paid overdraft fees at my bank 

The lawsuit seeks to recover funds for consumers who used the Earnin app and were subject to overdraft and other bank fees as a result. If you or someone you know has used the Earnin app and was charged bank fees due to withdrawals made by Earnin, contact us. Our class action attorneys can advise you of your legal rights and options.