A class action lawsuit has been filed against a financial technology company accused of exploiting active-duty military personnel through predatory lending practices. On March 25, 2025, Samuel Vickery, a Petty Officer in the U.S. Navy, filed the complaint in the Superior Court for the State of California, County of San Francisco, against Empower Finance, Inc. The lawsuit alleges that Empower's lending practices violate both the Military Lending Act (MLA) and the Truth in Lending Act (TILA).
According to the complaint, Empower Finance operates a payday lending business through its earned wage access product called "Empower Advance." This service provides cash advances to customers who repay with high finance charges on their payday. Despite advertising these loans as "no interest," Empower allegedly imposes triple-digit finance charges that can exceed 600% APR. The plaintiff argues that such practices trap consumers in cycles of debt and worsen their financial situations.
The lawsuit claims that Empower systematically violates the MLA by charging interest rates above the legal limit of 36% MAPR and failing to provide necessary credit disclosures. Additionally, it is alleged that Empower's loan agreements include unlawful provisions such as class action bans and mandatory arbitration clauses. These actions are said to endanger military readiness by financially destabilizing service members.
Plaintiff Samuel Vickery seeks relief on behalf of himself and others similarly situated. The complaint demands statutory damages under both MLA and TILA for each violation committed by Empower. Furthermore, it calls for injunctive relief to prevent further predatory lending practices by the defendant.
Representing Vickery and the proposed class are attorneys from Conn Law PC, Carney Bates & Pulliam PLLC, and Jacobson Phillips PLLC. The case is identified under Case No. CGC-25-623648 in front of judges at the Superior Court for San Francisco County.