Activehours, Inc. the parent company of mobile lending application Earnin agreed to pay $12.5 million to settle a lawsuit alleging it engaged in deceptive advertising and failed to provide proper disclosures to its users. People who used Earnin for a payroll advances claim the company marketed its service as a way to avoid overdraft fees from their banks. However, many of these consumers were charged hundreds of dollars in overdraft fees due to withdrawal attempts made by Earnin prior to funds being available.
If you or someone you know used the Earnin app to borrow money and would like more information about this lawsuit, contact us. Cohen & Malad, LLP class action attorneys have represented thousands of people in consumer protection lawsuits against banks, credit unions, and lenders related to improper fees and predatory lending.