Fintech appeals SDNY ruling that earned wage advance product constitutes consumer credit

On April 13, a financial technology company filed a notice of appeal to the U.S. Court of Appeals for the 2nd Circuit, challenging a March 31 SDNY ruling denying its motion to dismiss a proposed class action. The suit, brought by active duty servicemembers, alleges that: (i) the company’s earned wage advance product constituted consumer credit subject to TILA and the Military Lending Act (MLA); (ii) the company exceeded the MLA’s 36 percent military annual percentage rate cap; and (iii) the... By: Orrick, Herrington & Sutcliffe LLP