AG James sued payday lenders MoneyLion Inc. (MoneyLion) and DailyPay, Inc. (Daily Pay) for taking advantage of tens of thousands of New Yorkers with illegal high-interest loans. Both MoneyLion and DailyPay make paycheck advance loans to hourly workers in exchange for fees and tips, pretending to simply be advancing “earned” wages. Due to the short terms of the loans, the fees MoneyLion and DailyPay charge amount to outrageous annual interest rates in the triple digits, frequently up to 750 percent. Both payday lenders also engage in abusive tactics that push workers to frequently take out new loans to cover gaps created by their prior loans. With these lawsuits, Attorney General James is seeking to end MoneyLion and DailyPay’s illegal payday lending practices in New York, obtain restitution for tens of thousands of impacted workers, and impose civil penalties.

“Promising New Yorkers financial freedom while pushing them into outrageously expensive loans is downright shameful. These are payday loans by another name. While many New Yorkers are worried about making ends meet, DailyPay and MoneyLion are making tremendous profits by extracting workers’ hard-earned wages. I’m suing DailyPay and MoneyLion because New Yorkers deserve to keep the money they earn, not have it taken by predatory lenders.”- AG James