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predatory lending?
Old 03-24-2019, 05:53 PM   #1
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predatory lending?

Commercial on tv for an app called “Earnin”! This just seems wrong in so many ways. Almost sounds like a paid day loan, but users use their phones. Has anyone else seen these commercials or heard of the app? I guess this would be living pre paycheck to pre paycheck
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Old 03-24-2019, 06:43 PM   #2
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Their web site has an FAQ section, including "How does Earnin make money?", to which the answer is, apparently, by people leaving tips. I suspect that expecting people who need payday loans to leave generous gratuities may not be a sustainable business model.
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Old 03-24-2019, 07:00 PM   #3
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I wonder if it’s more like a lend club concept?
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Old 03-24-2019, 08:04 PM   #4
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I have seen the ads too and haven't a clue!
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Old 03-24-2019, 09:51 PM   #5
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My guess was the loan for the first week or two till payday was free or maybe with a tip, but if you didn't pay in full on the first payday then you got into serious interest.
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Old 03-25-2019, 05:41 AM   #6
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Is that really supposed to be a business model? Reminds me of chasing Unicorns or gold at the end of a rainbow. Sometimes real life is just too hard I guess.
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Old 03-25-2019, 08:50 AM   #7
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I just heard of it here. I checked into it and find it very sketchy. They make money via some pay add-on services such as bank overdraft protection that kicks in "before" you are overdrawn. 1st is free then fees for the next ones. Then there is the "tip" issue. Giving a tip of say $2 on a $20 advance every paycheck adds up quickly.

They "infer" your payday from your bank account info and issue a debit to your account on your payday. This could easily be another issue of possible overdrafts from the bank if you aren't keeping the checkbook balance current.

Sadly, I look at it as another way to scam money from those who can't seem to manage a budget. Making it more convoluted to control the family bills isn't the answer IMO.
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Old 03-28-2019, 09:14 PM   #8
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Wow. I read some reviews which are generally very positive. One reviewer describes having to upload a timesheet and GPS on your phone being able to verify when you’re working. Scary stuff.
I’m guessing the business plan is to develop detailed profiles of participants earnings and selling that data to some other vendor.
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Old 03-28-2019, 09:20 PM   #9
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Quote:
Originally Posted by rollergrrl View Post
Commercial on tv for an app called “Earnin”! This just seems wrong in so many ways. Almost sounds like a paid day loan, but users use their phones. Has anyone else seen these commercials or heard of the app? I guess this would be living pre paycheck to pre paycheck
Here is a pretty.good article about Earnin and how it works. https://www.nerdwallet.com/blog/loan...l-loan-review/
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Old 03-29-2019, 01:17 PM   #10
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Quote:
Originally Posted by audreyh1 View Post
Here is a pretty.good article about Earnin and how it works. https://www.nerdwallet.com/blog/loan...l-loan-review/
[rant mode on]

From the article:

Quote:
A two-week pay cycle is hard on people who have to budget every penny, says Ram Palaniappan, CEO of California-based Earnin. “If they worked today, they should have access to their money today.”
Aw, poor baby. Wait until you retire and your SS check only comes once a month. You won't have pension or investment income because you've already borrowed against and spent all of that, and SS does not give advances.

Then maybe you can grow up and have the maturity and self-discipline to defer immediate gratification for long term gain and take responsibility for yourself. Perhaps for the first time in your life.

[rant mode off]
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