Earnin’s customer service was unresponsive to her requests, though her bank ended up refunding the fees, she said
Nonrecourse debt can be considered a loan by the IRS, even though nonrecourse lenders “cannot pursue you personally in case of default,” according to the agency.
Earnin requires that users give the company the right to automatically debit their account. It also reserves the right to sue users for violating its terms of service.
Saunders said it was “quite debatable” whether Earnin’s loans are nonrecourse – and that even if they were, it might not matter anyway
“Just because a loan is nonrecourse doesn’t mean it is not a loan,” Saunders said, adding that that’s a decision for state regulators.
It’s not just the tips that are irking customers. Some complain that Earnin can withdraw funds from their bank accounts earlier than expected, spurring the overdraft fees that they were scrambling to avoid in the first place.
Others gripe that Earnin’s software is prone to random glitches that end up costing them money. “This service took http://paydayloansohio.net/cities/clarksburg a extra 100 out my account now they are giving me the run around,” one user, Anthony Vargas, wrote in a Facebook comment. (more…)