Fintech startup Earnin, who bills itself as an early access program for people to get a piece of their paycheck early, is under investigation by the NY Department of Financial Services; the company says it charges no fees, no interest and no hidden charges, instead users tip what they find feasible; according to reports tips equal upwards of 730 percent APR and if a user does not tip credit can be restricted; “Earnin is not in the same category as PayActiv, DailyPay and FlexWage,” said Lauren Saunders, associate director of the National Consumer Law Center, to American Banker. “True early wage access providers are companies that have agreements with the employer and are integrated with payroll and are not making loans and seeking repayment from the customer. Source
