Cash advance app overcharges: Who’s affected?
The Military Lending Act (MLA) establishes various safeguards for active duty service members and their spouses who are pursuing loans. However, some lending apps may offer loans and cash advances that do not adhere to the MLA’s standards.
While the stated interest rates meet regulatory guidelines, these lending apps generate additional revenue through monthly service fees, cash advance fees, and tips. When considering the complete cost of the loan, these ancillary expenses may exceed the limits outlined in the MLA.
Do you qualify?
If you used a cash advance app for small loans when you were an active duty military member or when your spouse was an active duty military member, you may have been overcharged under the Military Lending Act. Fill out the form on this page to learn more.
Fill out the form on this page for more information.
What are my rights under the Military Lending Act?
The Military Lending Act of 2006 is a federal law enacted to protect active duty service members and their dependents from excessive interest rates and fees on certain loans. Under the provisions of this law, covered individuals cannot be charged an annual percentage rate above 36%. This includes finance charges, credit insurance premiums, fees for ancillary products sold with the credit and other applicable charges.
In addition to rate caps, the Military Lending Act provides military members with important borrower protections. Lenders are prohibited from imposing fees for early loan repayment. They may not require borrowers to set up pay allotments from military pay. Additionally, covered individuals cannot be compelled to resolve disputes through mandatory arbitration or waive their legal rights as a requirement for securing a loan.
How much are cash advance apps allowed to charge?
In 2016, the Military Lending Act was expanded to cover most consumer loans. Under the updated law, payday loans and deposit advance products like cash advances are now subject to the same interest rate cap and regulations as other consumer loans extended to military borrowers. Specifically, the revisions mean that cash advance lenders may not charge active duty service members or their dependents an all-in annual percentage rate above 36%. That could include any monthly subscription fees, express fees, cash advance fees and tips that cash advance apps may charge or request.Â
Which cash advance apps are suspected of overcharging?
This investigation examines five lending apps that offer short-term loans, such as payday loans or cash advances. The apps under review are:
- Dave
- EarnIn
- MoneyLion
- Albert
- Brigit
Fill out the form on this page to see if you qualify for a free case evaluation.
See If You Qualify
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After you fill out the form, an attorney(s) or their agent(s) may contact you to discuss your legal rights.
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