D.C. Attorney General Sues EarnIn Over High Interest Loans

Washington D.C. Attorney General Brian Schwalb has filed a lawsuit against EarnIn, alleging the fintech company deceived over 20,000 borrowers with misleading advertising about its 'earned-wage' product, which it claimed was not a loan. The lawsuit accuses EarnIn of charging exorbitant fees that result in effective interest rates exceeding 300%, far above the District's legal cap of 24%. Instead of offering no fees, users must pay a 'Lightning Speed' fee to access their funds quickly, contradicting the claims made in advertisements across various social media platforms. The lawsuit seeks restitution and penalties while EarnIn defends its practices as beneficial to consumers. Schwalb emphasized the need to protect financially vulnerable residents from predatory lending practices. The outcome could significantly impact EarnIn's operations in the D.C. market.