From Yahoo Finance: 2025-04-14 12:41:00

New York’s attorney general sues DailyPay and MoneyLion, accusing them of exploiting workers with excessive fees, with rates above 200% and sometimes reaching 750%. MoneyLion’s $8.99 fee on a $100 advance has an annual interest rate of 234%, while DailyPay charges $2.99 on a $20 advance with a rate over 750%.

Attorney General Letitia James calls the companies predatory payday lenders, targeting workers trying to bridge gaps between paychecks and bills. DailyPay partners with companies like Burger King, McDonald’s, and Target. Lawsuits seek restitution, civil fines, and an end to exploitative practices.

DailyPay had sued James to prevent the case, claiming their product is not a loan. MoneyLion did not comment. Many states are vigilant as federal oversight decreases under the Trump administration. MoneyLion is being acquired by Gen Digital, with the deal set to close soon.



Read more at Yahoo Finance: New York sues DailyPay and MoneyLion, alleging predatory payday lending