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Another VC-backed fintech, Earnin, faces crackdown over allegedly ‘predatory’ loans

The attorney general for the District of Columbia is suing instant payday loan fintech Earnin for “deceptively marketing and providing illegal

Like most of the other fintechs in this category, Earnin says that the service is free if users don’t want their pre-payday loans immediately, but are willing to wait up to a couple of business days for funds to transfer. Earnin was a fintech darling back in 2018, when it raised $125 million from a host of big-name VCs including DST Global, Andreessen Horowitz, Spark Capital, Coatue, and Ribbit. Earlier this month, the The Federal Trade Commission (FTC) took action against the online cash app and neobank Dave, making similar allegations regarding how it advertises, versus how it charges fees.

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