If you have used the Earnin app and paid a “tip” for your cash advance, please contact us at consumer@kellerrohrback.com or 800-776-6044.

Is Earnin overcharging you for your cash advance?

Keller Rohrback L.L.P. is investigating reports that the app Earnin is potentially violating lending rules. Earnin, which calls the act of borrowing an “activation” instead of a loan, asks users to pay a 10% “tip” on the money they borrow. By avoiding the word “interest,” Earnin may be circumventing the Truth in Lending Act of 1968, which requires lenders to be transparent about their annual interest rates. Earnin may be misleading users, because if the “tip” were instead called “interest,” that interest rate would be very high.

Earnin may also violate state lending rules. By not identifying as a “payday lender,” the app is able to operate nationwide (and internationally), despite payday lending being illegal in fifteen states and Washington DC. Several states, including New York and California, have reportedly started investigating Earnin’s model and are taking measures to prevent the company and others like it from taking advantage of consumers through misleading practices.

“Companies should not be able to get around rules meant to protect consumers by simply re-branding what should be considered a payday loan,” said Keller Rohrback attorney Matthew Preusch.

If you have questions about “tips” you paid to Earnin on your payday loan, contact Keller Rohrback at consumer@kellerrohrback.com or 800-776-6044 for a privileged consultation.

About Keller Rohrback

Keller Rohrback is a leading consumer protection firm. With offices in Seattle, Phoenix, New York, Santa Barbara, Oakland, and Missoula, our Complex Litigation Group is proud to offer its expertise to clients nationwide. Our trial lawyers serve as lead and co-lead counsel in class actions throughout the country and have obtained judgments and settlements in excess of $23.25 billion.

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