As someone who is able to get an advance on my next paycheck through a different (but similar) app for a low monthly fee, I have to admit I did ask myself this question more than once.
So, when an article about Earnin and their loan practices popped up in my news feed, I really started to question the credibility and legality behind this new trend in payday loans.
You have probably seen the ads everywhere on Hulu, Facebook, and etc. Earnin advances you cash you have already earned, and you pay it back when you get paid. Simple? Seems like it.
As it stands, Earnin relies on tips from each cash advance to help keep them running. They do not just hand over money to deduct from your check later. Turn tips into fees and it does not seem to differ much from a traditional cash advance company.
Earnin feels they should be exempt from cash advance laws because they do not act as a traditional cash advance company. However, changing the lingo does not change what they, essentially, are doing.
I have never used Earnin. I use Even. However, Even depends on your employer and if they are signed up in their system. After that, it is a small monthly fee that is comparable to the cost of a Hulu or Netflix subscription. I doubt I would use Earnin with their higher fees.
Are cash advance apps the new age payday lender in your opinion?