FILE PHOTO: New York Attorney General Letitia James holds a press conference following a ruling against former U.S. President Donald Trump ordering him to pay $354.9 million and barring him from doing business in New York State for three years, in the Manhattan borough of New York City, U.S., February 16, 2024. REUTERS/David Dee Delgado/File Photo
NEW YORK (Reuters) - New York's attorney general sued DailyPay and MoneyLion on Monday, accusing the app-based financial technology companies of exploiting workers by charging excessive fees to collect paychecks more quickly, with effective interest rates above 200% and sometimes topping 750%.
Attorney General Letitia James called the companies predatory payday lenders that obscure the "exorbitant and plainly usurious" fees they charge workers, who hope to bridge gaps between payroll schedules and when bills come due.
