Consumer complaint received 2025-08-12 00:00:00
Product: Payday loan, title loan, personal loan, or advance loan — Payday loan
Issue: Can't stop withdrawals from your bank account — 
Company: Activehours
State: CO

Complaint narrative:
What happened : From XXXX through XXXX, while serving in the XXXX XXXX XXXX on XXXX XXXX, I used the EarnIn app to access wages I had already earned. I regularly paid XXXX XXXX fees of {$4.00} per transaction, sometimes up to four times per week.

These fees when annualized equate to APR rates well above 300 %, far exceeding the 36 % Military Lending Act ( MLA ) cap. The MLA applies to all fees, service charges, expedited delivery costs, or similar charges, regardless of what they are labeled. Whether you call it a tip, fee, or expedite charge, the substance of the transaction controls and EarnIn is clearly operating as a high-interest lender to service members in violation of federal law. 



The human cost : For three years, EarnIns fee structure drained roughly half of my paycheck every single pay period. It created a financial dependency cycle that I could not escape without closing my bank account entirely and allowing it to go to collections, which in turn destroyed my credit. 

I was in a constant state of financial XXXX. My ability to save money was eliminated. I was living paycheck to paycheck, not because of reckless spending, but because EarnIns business model is designed to keep people in a permanent state of borrowing. This is predatory lending 101.

When I tried to reach out for help, I received sporadic replies from customer service then radio silence. I later found the XXXX profile of EarnIns attorney, who has time to attend work events and post on professional networks, but apparently can not respond to a military service member about a serious, ongoing legal violation that impacted my livelihood for years. 



Why this matters : EarnIns marketing is a calculated trap. Their slogan Get your pay the day you work is designed to lure in hourly workers, low-income families, and service members who are more likely to be living paycheck to paycheck. They target the most financially vulnerable groups with a quick cash solution that quietly becomes a permanent financial crutch.

This is not help. This is exploitation. This is profit from desperation. 



Legal violations and precedent : EarnIns conduct appears to violate multiple federal and state laws : Military Lending Act ( MLA ) 10 U.S.C. 987 exceeding the 36 % MAPR cap, failing to provide required disclosures.

Truth in Lending Act ( TILA ) failure to disclose the true cost of credit.

State Usury Laws charging rates far above legal limits.

Unlicensed Lending operating without required lending licenses in certain jurisdictions.

Deceptive and Unfair Practices prohibited under the Consumer Financial Protection Act.

Regulatory history proves they know this is illegal : D.C. Attorney General, 2024 Alleged APR over 300 %, operating without a lending license.

Georgia & Federal TILA Class Action, XXXX APRs averaging 284 %. 
XXXX  v. Activehours, XXXX $ XXXX settlement for deceptive no fee claims and undisclosed overdraft risks. 



The broader harm : This is not just about me. For every one person who files a complaint, there are countless others still trapped in this cycle people who cant speak out because they are afraid of losing what little financial stability they have. In the military, this isnt just a personal problem it affects readiness, morale, and mental health. Congress enacted the MLA specifically to prevent lenders like EarnIn from preying on service members.

Yet EarnIn has chosen to ignore the law and continue exploiting the very people it was designed to protect. 

In an economy where working XXXX  are already struggling, a company charging 300 % interest rates to access your own wages is not a service its a scam with better branding. 



Desired resolution : 1. Full refund of all XXXX XXXX fees paid during my active-duty service.

2. Regulatory enforcement action to stop EarnIn from charging rates above the MLA cap and operating without proper licenses.

3. Investigation into EarnIns targeting of military personnel and low-income workers through deceptive marketing.

4. Settlement for lost wages and financial struggle over the years Final note to regulators and to EarnIn : EarnIn has known for years that its fee model exceeds legal limits. They have been sued, investigated, and fined yet they continue the same practices. This is not ignorance ; this is willful misconduct.

I am urging the Consumer Financial Protection Bureau, Department of Defense , Department of Justice, and state attorneys general to take coordinated action so no other service member or family is forced into years of financial instability by a company whose business model depends on keeping people broke.

Company response to consumer: Closed with explanation