- within Criminal Law, Accounting and Audit and Law Practice Management topic(s)
On August 27, 2026, the Colorado Attorney General, together with the state’s Consumer Credit Code Administrator, filed a lawsuit in Colorado state court against a California-based financial technology company offering earned wage access products, alleging that the company has been operating an unlicensed, high-cost lending program in violation of the Colorado Uniform Consumer Credit Code (UCCC), the Colorado Deferred Deposit Loan Act (DDLA), and the Colorado Consumer Protection Act (CCPA).
Specifically, the Complaint alleges that the Company’s earned wage access product functions as a consumer loan because consumers are required to pre-authorize the debiting of their bank accounts in order to receive a payment, no simple mechanism exists to revoke such authorization, and the Company retains the right to re-initiate debits after any failed attempt, for up to 150 days. The Complaint also alleges that the Company charges high interest rates without providing loan disclosures required by Colorado law. The Complaint further alleges that the Company engaged in deceptive trade practices by increasing the likelihood that customers would pay the company finance charges in the form of “tips” for each transaction.
The Attorney General and Administrator are seeking injunctive relief, as well as restitution, disgorgement of fees, statutory damages, civil penalties, attorneys’ fees, and other equitable relief
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