- Colorado AG Phil Weiser filed a lawsuit against Activehours, Inc., the company behind EarnIn, alleging that EarnIn’s products that it says allows consumers to access their money the same day they work constitutes illegal high-cost payday loans in violation of state lending and consumer protection laws.
- The lawsuit alleges that EarnIn uses deceptive app designs to extract certain finance charges that obscure the true cost of borrowing—including APRs of several hundred percent and, in some instances, exceeding more than 1,000%. The AG alleges these transactions occurred without required loan disclosures, without a supervised lender license, and in violation of Colorado’s strict payday lending protections. The AG also found that EarnIn used deceptive app designs to push consumers into paying tips, including requiring numerous taps to select no tip, buried “no tip” pathways, and displayed emotionally manipulative messages such as “pay it forward” to steer users into tipping.
- The AG is seeking restitution for affected consumers, civil penalties, disgorgement, and injunctive relief to stop EarnIn’s alleged unlawful practices. The complaint specifically challenges EarnIn’s direct-to-consumer product and does not target any services integrated with employers.