DC AG filed lawsuit against fintech company for deception NBC4 Washington [Video]

D.C. Attorney General Brian Schwalb filed a lawsuit against a company it says deceived thousands of District borrowers.

The lawsuit filed against EarnIn — a financial technology company — claims the business advertised customers could use the platform to prematurely access their paychecks without interest or mandatory fees.

In reality, the lawsuit claims EarnIn’s earned wage access—which it calls a “cash out”— are loans and users must pay a “lighting speed” fee or utilize the free option and wait up to two days to get their cash.

EarnIn advances the loan and secures repayment on the borrower’s next payday by withdrawing the amount of the loan, in addition to the fee and other charges, from the borrower’s bank account or debit card, according to the release.

“When you have short-term loans, small amounts with very high fees, the effective interest rates that are being charged on these advances are far in excess of 300%, way …