User:BC1278/sandbox/Earnin

Earnin is a company whose mobile app lets its members access the wages they've already earned, before payday, without fees or interest. Founded as Activehours in 2013, the app launched in May 2014. It expanded its services in 2019 to include negotiating with doctors and hospitals to lower its users medical bills.

As of December 2018, the app had about one million downloads and was used by workers at about 50,000 businesses.

History
The company was founded by Ram Palaniappan in 2013. While president of Rushcard, Palaniappan found out that some employees occasionally skipped work because they did not have the money to pay for gas prior to payday. He set up a service to pay employees in advance of payday. After he left Rushcard, former employees asked him if he could continue to offer the service.

Instead of charging interest or a fee, the member is asked to leave a "voluntary tip" for each transaction. The app suggests multiple tip levels for every transaction. In 2019, the company's tip suggestions ranged from zero to $14 for a $100 advance. Tips are capped at about 15% of the $100 daily limit. After a member's scheduled wages are deposited in their bank account by their employer, the company automatically withdraws the cash out and the tip. Payments are only made for hours already worked and with a daily cap of $100. There is a pay cycle maximum advance cap that varies by user.

The company raised $4.1 million in 2014. At the time, some questioned whether the business model was viable since tipping was voluntary. The company said in 2014 that it used "bank grade" security. Money transfers are made with the same “automated clearing house” system employed by banks.

The company has partnered with Uber to allow its drivers cash out after a shift. It has a similar arrangement with Sears.

By 2017, the company had raised $65 million in funding. And in December 2018, it raised an additional $125 million. It rebranded from Activehours to Earnin in 2017.

In April 2019, the New York State Department of Financial Services investigated whether the company's "tipping" system skirted New York State lending laws regulating payday lending. An article in the New York Post said that members who do not leave tips may have their monthly maximum restricted, which may trigger interest rate disclosure laws. New York State subpoenaed information from the company, including a calculation of annual percentage rates if tips were measured as fees or interest. In 2019, there were also consumer complaints about glitches sometimes resulting in delays in fund transfers.

In May 2019, the company began offering its users a service to negotiate for a reduction in outstanding doctor or hospital hospital bills. The company will also negotiate installment payments for outstanding medical bills if it can. The service is offered without a fee and members are asked to leave a voluntary tip for good service.