Company Behind Earnin App Settles Overdraft Fees Class Action Lawsuit, Agrees To Allocate More Than $12 Million Worth Of Compensation
Activehours, the company behind mobile app Earnin, has agreed to a settlement after it has been accused of charging excessive third-party overdraft fees amongst its users after they make a withdrawal using the Earnin app.
Complainants in the class action argue that Activehours allegedly did not include the risk of incurring a third party overdraft fee potential customers might face while using the mobile app in its app’s marketing.
Advertised as an app that does not charge fees or any interest at all, Earnin has been able to rack up more than one million downloads.
It is used by about 375,000 active users weekly, according to online digital technology resources.
Promising its users of credit of up to $100 a day before the expected payday, the Earnin app only required its users to provide their bank details as well as job information and income.
With these claims, customers were then enticed to use the app due to its purported features, yet the actual truth is far from it.
Plaintiffs claimed that the Earnin app ended up withdrawing funds from their bank accounts that contained not enough money, which then leads to them being charged with overdraft and insufficient fund fees.
Additionally, the app also made multiple separate transactions during a day, leading to them being excessively charged more instead of only being charged for one comparatively larger transaction.
The plaintiffs to the class action argue that they would not have used the Earnin app’s services if they had known these risks.
As of press time, Activehours have kept on its stance that the company has not committed any wrongdoing regarding the matter.
Earnin Overdraft Fees Settlement Details
To be eligible to join this class action settlement, you need to have downloaded and used the Earnin app’s services on your smartphone.
Next is that you should have made a withdrawal on the app between September 3, 2015, to May 28, 2020, which resulted in you being charged with an insufficient fund or overdraft bank fee.
You do not need to provide any proof of purchase for eligible claimants will be determined by the company’s list of records and transactions.
Potential monetary compensation for each eligible claimant is yet to be determined. It will be distributed amongst all of the eligible claimants through a pro-rata scheme.
The final amount a person can receive depends on the total number of recorded overdraft transactions in all app users and how many overdraft transactions a person has been charged specifically.
This will be taken from the $3 million settlement fund Activehours agreed to set aside for this settlement.
Activehours will also let suspended Earnin app users use the company’s Earnin Express service until they are able to use about $9.5 million worth of service fees after they were kicked out of the app for nonpayment of cashouts.
If you want to learn more about this settlement, you can visit the official settlement site by clicking right here.
A final hearing is set in a California federal court on March 25, 2021, in order for the settlement details to be given the court’s stamp of approval.
Editor’s Note on Activehours Earnin Settlement Details:
This news piece is published to inform you of the latest class action lawsuit settlement between plaintiffs and Activehours – the company behind the Earnin app.
What are your thoughts on this piece? Have you downloaded the app too and experienced being charged with overdraft fees?
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