New York Attorney General Letitia James has sued payday lenders MoneyLion Inc. and DailyPay Inc. in New York state court, alleging that the two companies took advantage of tens of thousands of New Yorkers.
Both companies make paycheck advance loans to hourly workers in exchange for tips and fees.
The short-term nature of the loans results in “outrageous” interest rates, frequently reaching 750%, according to James, who added that both companies allegedly push workers to take out frequent loans to cover gaps created by their prior loans.… Continue Reading