Felix Ramirez, a Sergeant in the United States Marine Corps, has filed a class-action lawsuit against ActiveHours, Inc., doing business as EarnIn, alleging predatory lending practices that violate both the Military Lending Act (MLA) and the Truth in Lending Act (TILA). The complaint was filed on March 18, 2025, in the Superior Court of California for Santa Clara County. Ramirez accuses EarnIn of exploiting active-duty military personnel through its payday lending services disguised as earned wage access products.
The lawsuit highlights EarnIn's business model, which offers short-term loans to consumers living paycheck to paycheck under the guise of providing early access to wages. Despite advertising these loans as interest-free with no mandatory fees, EarnIn allegedly charges finance rates averaging 284% APR, with some reaching as high as 1,458%. These exorbitant rates are claimed to trap borrowers in cycles of debt. Ramirez asserts that these practices are particularly harmful to military members who are more susceptible to financial distress due to their service commitments.
Ramirez's complaint outlines several violations by EarnIn under the MLA and TILA. It alleges that EarnIn fails to provide required disclosures about interest rates and payment obligations and imposes unlawful terms such as class action bans and mandatory arbitration clauses. The MLA specifically protects military personnel from excessive interest rates above 36%, which EarnIn is accused of surpassing consistently. Furthermore, TILA mandates clear disclosure of loan terms and costs, which Ramirez claims EarnIn does not comply with.
The plaintiff seeks multiple forms of relief from the court: statutory damages for each violation amounting to at least $500 per incident under the MLA; actual damages; punitive damages; injunctive relief preventing further predatory practices by EarnIn; and compensation for attorney fees and litigation costs. This case underscores ongoing concerns about financial exploitation within military communities and seeks to hold lenders accountable for compliance with federal consumer protection laws.
Representing Felix Ramirez is Elliot Conn from Conn Law PC, alongside Randall K. Pulliam from Carney Bates & Pulliam PLLC and Joshua R. Jacobson from Jacobson Phillips PLLC. The case is identified under Case No.: 25CV461322 in front of Judge P. Hernandez at the Superior Court for Santa Clara County.