EarnIn Lawsuit: Colorado Says Cash Out Is a 388% Payday Loan
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The EarnIn lawsuit in the news is new: on August 27, 2026, Colorado’s attorney general sued Activehours, Inc., the company behind the EarnIn app, alleging its Cash Out advances are illegal high-cost loans. It joins a D.C. enforcement case and several private class actions over tips and Lightning Speed fees. As of October 2026 none of them has settled — there is no fund and no claim form. The only EarnIn settlement that ever paid, from 2021, is closed.
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Reviewed by Leonard Goldberg, Editor · Last updated
What the Lawsuits Say EarnIn Did
EarnIn markets Cash Out as early access to pay you have already earned, with “no interest” and “no hidden fees.” Every current case attacks the same two charges: the Lightning Speed fee for instant transfer ($3.99 or $5.99 per transaction, per the D.C. attorney general) and the “tip.” The lawsuits allege both are really interest on a loan, because users must authorize EarnIn to debit their bank account on payday and the app keeps trying until it is repaid.
Colorado alleges that more than 92% of transactions carried a tip or an expedited fee, producing an average APR of 387.69%, with some loans above 1,000%. It also alleges “dark patterns”: default tip amounts, extra screens to choose a $0 tip, and “pay it forward” messaging, although the tips went to EarnIn. EarnIn’s position is that the advances are not loans because they are nonrecourse — users have no legal obligation to repay if a withdrawal fails.
Case Details
Colorado: Weiser v. Activehours, Inc. d/b/a EarnIn, No. 2026CV033099, District Court for the City and County of Denver, filed August 27, 2026. The state says EarnIn made more than 3.1 million advances, roughly $300 million, to 56,778 Colorado consumers from January 2023 through July 2025 and collected more than $16 million in tips and fees.
District of Columbia: District of Columbia v. Activehours Inc., No. 2024-CAB-007303, D.C. Superior Court, filed November 2024.
Private class actions (federal): Johnson v. Activehours, Inc., No. 1:24-cv-02283 (D. Md.); Golubiewski v. Activehours, Inc., No. 3:22-cv-02078 (M.D. Pa.); Orubo v. Activehours, Inc., No. 5:24-cv-04702 (N.D. Cal., Georgia borrowers). Two more — Stow, No. 1:25-cv-00391 (M.D.N.C.), and Ramirez, No. 5:25-cv-03625 (N.D. Cal., Military Lending Act claims) — were sent to or paused for arbitration.
Status: Several Live Cases, No Settlement
The Colorado case is at its very start. It seeks restitution for consumers, civil penalties, disgorgement and an injunction — if Colorado wins or settles, restitution would go to Colorado users, not everyone. In D.C., the court sent the question of whether Cash Out is a loan to the D.C. banking regulator but let the deception claims proceed; the court granted an interlocutory appeal, and per the Center for Responsible Lending’s tracker the case is in discovery. The Maryland, Pennsylvania and Georgia-law class actions all survived motions to dismiss and are in discovery, although in Maryland EarnIn has again moved to dismiss an amended complaint and the court had not ruled when the tracker was last updated. None has a certified class. A similar D.C. class action, Handy-Gerena (No. 2025-CAB-002545), was dismissed.
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Who Could Benefit
Each case covers a different group, and none has a certified class yet:
Colorado users who took Cash Out advances — the state’s case covers January 2023 through July 2025. D.C. users — the attorney general says roughly 20,000 residents made more than 1 million transactions since 2016. Maryland, Pennsylvania and Georgia users who paid tips or Lightning Speed fees are the proposed classes in the private suits.
You do not sign up for any of these. If a class is certified or a case settles, official notice goes to class members directly; in the 2021 settlement, members were identified from EarnIn’s records and emailed. One catch: EarnIn’s terms contain an arbitration clause — a North Carolina court compelled arbitration, and the parties in the Illinois-law case agreed to arbitrate. Screenshots of your Cash Out history, tips and fees are worth keeping either way.
What an EarnIn Settlement Could Pay
For context only, the one EarnIn settlement that did pay — Perks v. Activehours, over bank overdraft fees triggered by EarnIn withdrawals — created a $3,000,000 fund (including legal fees) plus up to $9.5 million in forgiveness of unpaid advances for suspended accounts, reported together as a $12.5 million deal. That was a different claim with a different class. In lending cases like the current ones, relief usually means refunds of fees and tips actually paid, so your own transaction history — not a flat amount — would drive any payout.
EarnIn Lawsuit Timeline
- 1
March 25, 2021 — Overdraft-Fee Settlement Approved
Final approval of Perks v. Activehours (No. 5:19-cv-05543-BLF, N.D. Cal.) for users charged bank overdraft fees tied to EarnIn withdrawals between September 3, 2015 and May 28, 2020. That settlement is closed.
- 2
2022–2024 — Fee and Tip Class Actions Filed
Users sue in Pennsylvania (filed December 30, 2022), California for Georgia borrowers, and Maryland (filed August 7, 2024), alleging tips and Lightning Speed fees are hidden interest.
- 3
November 2024 — D.C. Attorney General Sues
The District alleges average APRs over 300%, far above its 24% cap, and that EarnIn lends without a license.
- 4
August 8, 2025 — Maryland Ruling Against EarnIn
Judge Julie Rubin refuses to dismiss the state lending-law and Truth in Lending Act claims, finding the fees and tips plausibly are loan charges. A consumer-protection claim is dismissed.
- 5
August 27, 2026 — Colorado Sues
Colorado alleges an average APR of 387.69% against a 36% payday-loan cap that voters approved in 2018 (Proposition 111).
- 6
As of October 2026 — No Settlement
All active cases are in early stages or discovery. No fund, claim form or deadline exists.
Three Things to Watch For
A popular app, a big headline and no claim form is the gap scammers fill:
“Claim your EarnIn refund” sites
There is no claims portal for the Colorado case or any class action. A page asking you to log in with your bank credentials or EarnIn password to “verify your refund” is phishing — and EarnIn already has debit access to that account.
Texts about the old 2021 settlement
The Perks overdraft settlement was approved in 2021 and is closed. A message saying you still have “unclaimed money” from it and asking for a processing fee is a scam; real administrators do not charge class members.
Debt-relief offers using the lawsuit
Some sellers claim the lawsuits mean you no longer have to repay advances, then charge to “settle” your balance. No court has ruled that. Talk to a lawyer or nonprofit credit counselor, not someone charging upfront.
EarnIn Lawsuit — Questions People Actually Ask
Why is EarnIn in the news?
On August 27, 2026, Colorado Attorney General Phil Weiser sued Activehours, Inc. d/b/a EarnIn, alleging its Cash Out advances are high-cost payday loans that break Colorado’s lending and consumer-protection laws.
Is there an EarnIn settlement I can file a claim for?
No. As of October 2026 there is no open EarnIn settlement. The only one, Perks v. Activehours, was approved on March 25, 2021 and is closed. Check our open class action settlements list for cases that are paying.
Is EarnIn being sued for its tips?
Yes. Colorado, the District of Columbia and private plaintiffs all allege that tips and Lightning Speed fees are disguised interest. The D.C. attorney general says default tips ran between $1 and $14 per transaction. EarnIn says tips are optional and its advances are not loans.
I live in Colorado. Do I get money?
Not now. The attorney general is asking for restitution to affected consumers, but the case was only filed on August 27, 2026. Money would come only from a judgment or settlement, and the state or a court-appointed administrator would contact you.
Do I have to stop repaying my EarnIn advances?
No court has said so. EarnIn’s position is that advances are nonrecourse, while the lawsuits argue repayment is practically required through automatic debits. Treat any advice to stop paying as a personal decision to discuss with a lawyer, not a result of these cases.
Can I join an EarnIn class action?
You cannot sign up. If a class is certified you are included automatically unless you opt out. Be aware that EarnIn’s terms include arbitration, and at least two cases have moved to arbitration — which can limit class claims.
What was the 2021 EarnIn settlement about?
Overdraft fees. Users alleged EarnIn withdrawals triggered bank overdraft charges between September 3, 2015 and May 28, 2020. EarnIn denied wrongdoing and paid a $3,000,000 fund plus up to $9.5 million in debt forgiveness. Class members were identified from EarnIn’s records.
What should I do right now?
Download or screenshot your EarnIn transaction history showing each tip and Lightning Speed fee. Check your bank statements for repeated debit attempts. If you are in Colorado or D.C., you can file a complaint with your attorney general. Ignore anyone charging to “join” the lawsuit.
Separate from this case: were you injured in the last 2 years?
Class-action payouts are fixed amounts through an administrator. A personal injury claim is a different case — and often worth far more. Free estimate, no obligation.
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