In November 2019, a class-action lawsuit was filed against Earnin (an app that allows users to borrow from their wages before they are paid) for allegedly misleadingly representing that the app provides a payday advance with “no fees, interest, or hidden cost” when, according to the complaint, the app actually does charge a fee for using the service but it disguises the fee as a “tip.” The complaint also alleges that the app does not comply with various lending and financing laws. (Stark et al v. Activehours, Inc. d/b/a Earnin, Case No. 19-cv-7553, N. D. CA.)


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