Attorney General Weiser sues EarnIn for illegal high-cost lending, deception, and violating state payday lending and consumer credit laws

Aug. 27, 2026 (DENVER) – Attorney General Phil Weiser today announced a lawsuit against Activehours, Inc., which does business as EarnIn, for illegally providing high cost payday loans to tens of thousands of Colorado consumers.

EarnIn is a financial technology company that offers loans called “Cash Outs” to consumers through its mobile app and website. Often referred to as an earned wage access provider, the company advertises that these loans “make any day payday” and consumers can access their money the same day they work.

The lawsuit alleges that EarnIn used deceptive app designs to extract certain finance charges and violated multiple provisions of Colorado’s lending and consumer protections as well as the voter-approved payday lending protections. The lawsuit challenges EarnIn’s direct to consumer product and not any product that integrates with employers.

“Colorado voters acted decisively in 2018 to rein in predatory payday lending. EarnIn’s product, however, provides consumer loans at high interest rates that are styled as accessing their pay,” said Attorney General Weiser. “EarnIn was not working with companies here in providing consumers with funds but acted as a third-party lender and charged illegally high rates, used deceptive design strategies to extract some charges, and trapped consumers in repeat borrowing. Colorado will continue to stand up for consumers and hold companies accountable when they violate our credit laws or attempt to evade them through misleading practices.”

EarnIn markets its product as “access to your earnings” with “no interest” and “no hidden fees,” claiming that its “Cash Out” advances are not loans. The attorney general’s investigation, however, found that EarnIn requires consumers to authorize repayment directly from their bank accounts, collects finance charges in the form of tips and Lightning Speed fees, and repeatedly debits consumers’ accounts until repaid. In practice, EarnIn charged APRs of several hundred percent—and in some cases more than 1,000%—without required loan disclosures, without a supervised lender license, and in violation of Colorado’s strict payday lending protections.

Between January 2023 and July 2025, EarnIn made more than 3.1 million loans to 56,778 Colorado consumers, lending approximately $300 million and collecting more than $16 million in tips and Lightning Speed fees. Consumers were charged either a tip or an expedite fee for more than 92% of transactions, resulting in an average APR of nearly 388%. EarnIn’s business practices produced extraordinarily high repayment rates: Colorado consumers repaid EarnIn on 99.18% of transactions, demonstrating that EarnIn’s advances function as high cost loans, not voluntary payments.

EarnIn’s conduct trapped many consumers in extreme cycles of high-cost reborrowing. One Colorado consumer took out 1,151 loans, paying $4,038.50 in Lightning Speed fees on loans averaging 1,421% APR. Another took out 1,033 loans, paying $8,561.22 in tips and fees at an average APR of 1,539%. These examples illustrate the severe and repeated financial harm caused by EarnIn’s illegal lending model.

The attorney general also found that EarnIn used deceptive app designs to push consumers into paying tips. EarnIn’s app required numerous taps to select no tip, buried no tip pathways, and displayed emotionally manipulative messages such as “pay it forward” to steer users toward tipping. But tips did not go to other users—they went directly to EarnIn’s bottom line. These practices are unfair and deceptive and violate Colorado’s consumer protection laws, the complaint alleges.

The attorney general seeks restitution for affected consumers, civil penalties, disgorgement, and injunctive relief to stop EarnIn’s unlawful practices.

Colorado consumers who believe they have been subjected to unfair lending practices may file a complaint with the attorney general’s office.

Read a copy of the complaint (PDF).

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Media Contact:
Lawrence Pacheco
Chief Communications Officer
(720) 508-6553 office
lawrence.pacheco@coag.gov