New York Attorney General Letitia James has targeted earned wage access providers DailyPay and MoneyLion in a lawsuit, accusing them of engaging in payday lending practices with exorbitant interest rates up to 750% per annum. The lawsuit aims to halt these alleged illegal activities and seek restitution for affected consumers. DailyPay has countered with a suit asserting that their service does not constitute a loan. Concurrently, New York is reviewing EWA legislation to impose a rate cap on these transactions.
Promising New Yorkers financial freedom while pushing them into outrageously expensive loans is downright shameful. These are payday loans by another name.
We look forward to demonstrating in court that DailyPay's on-demand pay product is not a loan - that there is no interest, no advance of future earnings, and no obligation for workers to repay DailyPay.
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