United States

Online lenders under investigation by regulators in 10 states, Puerto Rico

The New York Department of Financial Services is leading an investigation into of a new breed of online lender that claims to provide advance payments on workers’ paychecks — but are possibly violating usury and other payday lending laws, The Post has learned. The investigation, which includes a coalition of 10 state banking regulators and Puerto Rico, is centered on companies like Earnin and others that charge “tips” or monthly memberships that can add up to annual percentage rates of over 400 percent. “High-cost payroll loans are scrutinized closely in New York, and this investigation will help determine whether these payroll advance practices are usurious and harming consumers,” Linda A. Lacewell, the New York Departme ...