Which cash advance apps are currently being sued?

Several cash advance apps are currently facing lawsuits or government enforcement actions. Active cases include Dave (DOJ/FTC lawsuit), EarnIn (DC Attorney General + federal class action), DailyPay (New York Attorney General), MoneyLion (New York Attorney General + City of Baltimore), Current, FloatMe, Klover, Payactiv, and Cash App Borrow. Cleo AI has already settled with the FTC for $17 million, with refunds pending distribution.

Can I get money back from a cash advance app lawsuit?

Yes. If you have used a cash advance app that is currently facing a lawsuit or government enforcement action, you may be eligible to receive compensation. For mass arbitration cases like Current, MoneyLion, FloatMe, Klover, Payactiv, and Cash App Borrow, you can sign up online today at no cost. For government settlements like the FTC cases against Cleo, Dave, and others, eligible users are typically contacted directly when refunds are distributed.

How do I sign up for a cash advance app lawsuit?

For mass arbitration cases, you can sign up entirely online through the law firm handling the case — most commonly Lantern by Labaton (lantern.labaton.com) or Milberg via ClassAction.org. The process takes just a few minutes. You may be asked to provide your name, contact information, the email address associated with your account, and in some cases a screenshot confirming your account or fees paid. There is no cost to sign up.

How much money can I get from a cash advance app settlement?

Payouts vary by case. Past FTC settlements paid modest amounts to large numbers of users — Brigit users received around $9 each, and FloatMe users received around $5.79 each. Active mass arbitration cases for apps like Current and Dave advertise potential payouts of $400 to $1,000 or more per person, depending on how much you paid in fees and which state you live in. Amounts are not guaranteed and depend on the outcome of each case.

Is it free to join a cash advance app lawsuit?

Yes. Signing up for any of the active mass arbitration cases is completely free. The law firms handling these cases work on contingency, meaning they only get paid if they win your claim. Their fees are deducted from your settlement award — you will never be asked to pay anything upfront. Be cautious of any service that asks for payment to join one of these cases, as that is a sign of a scam.

Do I have to go to court or speak with a lawyer?

No. In mass arbitration cases, you will not go to court, testify, or attend any hearings. One law firm represents thousands of people simultaneously. After you sign up and complete your intake form, the lawyers handle everything. Most participants never speak directly with the attorney representing them. For government settlements, you typically do not need to take any action at all — eligible users are contacted automatically.

How long do cash advance app lawsuits take to settle?

Most mass arbitration and class action cases take one to two years or longer to fully resolve. Government enforcement cases can take even longer depending on whether the company contests the charges. Some of the active cases listed here, such as the MoneyLion and DailyPay NY Attorney General lawsuits, are already well underway. Signing up early keeps your place in line and preserves your eligibility.

What is mass arbitration and how is it different from a class action lawsuit?

Mass arbitration is a legal strategy where hundreds or thousands of consumers each file individual claims against the same company over the same issue at the same time. Unlike a class action lawsuit, which is decided in court for the entire group at once, mass arbitration claims are filed individually and handled outside of court. Both approaches allow large groups of consumers to take action together. The key practical difference for you is the same: sign up online, let the lawyers handle it, and receive your share if the case is successful.

Did Brigit settle its lawsuit with the FTC?

Yes. Brigit settled with the FTC in 2023 for $18 million. The FTC alleged that Brigit promised instant cash advances of up to $250 but rarely delivered that amount, charged hidden fees for faster access, and made it nearly impossible to cancel its $9.99 monthly subscription. In November 2024, the FTC sent PayPal payments to more than 1.8 million eligible Brigit users. The refund window for that settlement has now closed.

Did FloatMe settle its lawsuit with the FTC?

Yes. FloatMe settled with the FTC in January 2024 for $3 million. The FTC alleged FloatMe promised free instant cash advances of up to $50 but only delivered $20, charged a $4 fee for faster access, and discriminated against users who received public assistance. In September 2024, the FTC sent PayPal payments to about 449,000 eligible users averaging around $5.79 each. The refund window for that settlement has now closed, though a separate mass arbitration through Milberg remains open.

What happened with the Cleo AI FTC settlement?

Cleo AI settled with the FTC in March 2025 for $17 million. The FTC found that Cleo advertised cash advances of up to $250 or $500 but most users received under $45, charged hidden fees for same-day delivery, and made subscriptions difficult to cancel. The $10 million consumer refund portion of the settlement has not yet been distributed. Eligible users will be contacted directly by the FTC when the refund program opens. You can monitor the status at ftc.gov/enforcement/refunds.

Is the Dave lawsuit still active?

Yes. The federal government's case against Dave is still active as of early 2026. The FTC originally sued Dave in November 2024, and the DOJ filed an amended complaint in December 2024 that added Dave's CEO as a defendant. The government alleges Dave advertised 'up to $500 instantly' but almost no new users received that amount, while the app charged hidden express fees and added 'tips' of 15% by default. The case is pending in federal court and no consumer claims portal has opened yet.

Can I join the MoneyLion lawsuit?

Yes, with options depending on where you live. All MoneyLion Instacash users can sign up for mass arbitration right now through Milberg at form.classaction.org/f/MoneyLion — it's free and takes a few minutes. New York residents may also be covered by the New York Attorney General's April 2025 lawsuit, which seeks restitution for NY users specifically. Baltimore and Maryland residents may be covered by a separate city of Baltimore lawsuit filed in October 2025. Signing up for the mass arbitration does not prevent you from benefiting from a government settlement if one occurs.

What fees did cash advance apps charge that are being challenged in court?

The fees most commonly challenged in these lawsuits include: express or instant transfer fees charged to receive cash faster (typically $2–$25 per transaction), optional 'tips' that apps pushed users to pay by default, monthly subscription fees that continued even when advances were denied or when users tried to cancel, and fees charged to users who received public assistance and were denied the advances they paid for. Regulators argue these fees functioned as undisclosed interest charges on short-term loans, often resulting in effective annual interest rates of 145% to 750% or higher.

Which cash advance apps have already paid refunds to users?

Three apps have paid FTC settlements and distributed refunds to users: Brigit paid $18 million and sent payments to 1.8 million users in November 2024 (average ~$9 per user). FloatMe paid $3 million and sent payments to 449,000 users in September 2024 (average ~$5.79 per user). Cleo AI paid $17 million in March 2025 but has not yet distributed consumer refunds — that process is still pending. The refund windows for Brigit and FloatMe are now closed.

Cash Advance Class Action Settlements

Editor’s Note: Overdraft Apps provides detailed product reviews and recommendations based upon extensive research and our own hands-on testing. We may earn a referral fee when you sign up for or purchase products mentioned in this article.

Author
Recent Posts

Mitchel Harad

Mitchel Harad is an expert in consumer lending, including cash advance apps and personal loans. He has over 20 years of experience in financial services at both banks (JP Morgan Chase) and upstart lenders (Lending Club, SocietyOne). He is passionate about educating consumers on how financial systems work to empower them to make informed and cost-effective decisions. During some challenging financial times, he paid thousands of dollars in overdraft fees at a time when he could least afford them – an experience he hopes to help others avoid.

Mitchel holds a Bachelors of Business Administration in Finance from The Goizeta School of Business at Emory University and a Masters of Business Administration from The Haas School of Business at The University of California.

What Are These Lawsuits About?

The core accusation is generally the same across almost every case: these apps advertised fast, cheap cash advances — then buried the real costs in fees, pressured users to leave “tips” that functioned as interest, and made canceling feel impossible. In many cases, the advertised advance amount ($250, $500) was almost never what users actually received.

There are three types of actions happening right now:

Government enforcement — The FTC, the DOJ, and state attorneys general have filed lawsuits directly against these companies. When the government wins or settles, it distributes money back to affected users. You typically don’t have to do anything to receive a refund — eligible users are contacted directly.

Mass arbitration — Consumer law firms are signing up thousands of users to file individual legal claims against the same company at the same time. You sign up online for free, the lawyers handle everything, and you only pay if you win. This is how most of the active cases on this list work.

Class action lawsuits — Similar to mass arbitration, but handled through the courts. If a class action settles, affected users often receive a check or payment automatically.

Apps That Have Already Paid Out

FTC press release announcing refunds to brigit users

The process works — and the proof is in the payouts already made to millions of users.

Brigit was sued by the FTC in 2023 for promising instant cash advances of up to $250 but rarely delivering that amount, charging hidden fees for speed, and making it nearly impossible to cancel a $9.99/month subscription. Brigit paid $18 million to settle. In November 2024, the FTC sent PayPal payments to more than 1.8 million users — most received around $9.

FloatMe faced similar FTC charges: it promised up to $50 in free instant advances but only delivered $20, tacked on a $4 speed fee, and discriminated against users who received Social Security or unemployment benefits by denying them advances while still charging monthly fees. FloatMe paid $3 million to settle. In September 2024, about 449,000 users received PayPal payments averaging around $5.79.

Cleo settled with the FTC in March 2025 for $17 million after the agency found that almost no one received the “up to $250 or $500” advances Cleo advertised — most users got under $45 — while being charged fees for same-day delivery and trapped in hard-to-cancel subscriptions. The Cleo refunds have not been distributed yet. Keep an eye on your email and check ftc.gov/enforcement/refunds for updates.

Individual payouts in these cases were modest — but the process required almost zero effort from users. The bigger cases now in progress, where users are actively signing up, have the potential for significantly higher individual payouts.

How to Sign Up — and What to Expect

It’s free and completely online. There’s no cost to sign up for any of the active cases below. The law firms handling these cases work on contingency — meaning they only get paid if they win your claim. Their fees are taken out of your settlement award. You will never be asked to pay anything upfront. If anyone contacts you claiming to represent one of these cases and asks for payment, that is a scam.

You probably won’t need much paperwork. Most sign-up forms take just a few minutes. Some cases may ask you to provide a screenshot of your account, the email you used to register, or basic confirmation of when you used the app. If documentation is needed, you’ll be guided through it after you sign up.

You won’t go to court or speak with a lawyer. In mass arbitration cases, one law firm represents thousands of people at once. You will fill out a form, sign an attorney-client agreement electronically, and then wait. You won’t testify, you won’t attend hearings, and in most cases you will never speak directly with the attorney representing you.

These cases take time. Most mass arbitrations and lawsuits take one to two years — sometimes longer — to fully resolve. That said, several of the cases below are already well underway. Signing up now keeps your place in line.

Active Cases: Sign Up Today

The following apps currently have open cases where you can register your claim. Cases are listed alphabetically.

Cash App Borrow

What’s alleged: Cash App Borrow is accused of charging “instant transfer” fees that may function as illegal interest on short-term advances, without properly disclosing the true cost to users.

Who may qualify: Users who paid instant transfer fees through Cash App Borrow.

Type: Mass arbitration (Milberg) Deadline: Registration still open

Sign up: classaction.org/finance-arbitrations-to-join

Current

What’s alleged: Current is accused of calling its cash advances simple “paycheck advances” when they actually function as high-interest loans — and failing to clearly disclose the true cost of fees charged for faster access.

Who may qualify: Anyone who received a paycheck advance through Current within the last 4 years.

Type: Mass arbitration — two separate firms are signing up users Potential payout: Up to $400 or more Deadline: Registration still open

Sign up:

DailyPay

What’s alleged: The New York Attorney General sued DailyPay in April 2025, claiming its paycheck advances are actually illegal payday loans — with annual interest rates that can top 750% — and that it uses deceptive advertising to lure workers into taking out repeat loans.

Who may qualify: Current and former DailyPay users, particularly those in New York. Private lawsuits may expand eligibility to other states.

Type: Government lawsuit (NY Attorney General) — still pending in court Deadline: No sign-up portal yet — monitor for updates as the case moves forward

Learn more: ag.ny.gov

Dave

What’s alleged: The federal government — first the FTC, then the DOJ — sued Dave for advertising “up to $500 instantly” when most new users got little or nothing, while the app secretly added “tips” of 15% and charged hidden express fees. Dave’s CEO was also named as a defendant.

Who may qualify: Anyone who had a Dave account and applied for or received an ExtraCash advance, or paid express fees or tips.

Type: Government lawsuit (DOJ on behalf of FTC) — pending in federal court Deadline: No sign-up portal yet — monitor for updates as the case moves forward

Learn more: ftc.gov/legal-library/browse/cases-proceedings/232-3014-dave-inc-ftc-v

EarnIn

What’s alleged: EarnIn is accused of calling its cash advances free while charging “Lightning Speed fees” and pressuring users to tip — fees that, when calculated as interest, can equal APRs of 145% or higher in violation of federal and state lending laws.

Who may qualify: Users who used EarnIn’s “Cash Out” feature and paid Lightning Speed fees or left tips.

Type: Multiple lawsuits in progress — federal class action in Maryland, DC Attorney General lawsuit — no active consumer sign-up portal currently available Deadline: No sign-up portal yet — monitor for updates

Monitor for updates: classaction.org/earnin

FloatMe

What’s alleged: FloatMe is accused of promising up to $50 in free instant cash advances, then only delivering $20, charging a $4 fee for speed, and discriminating against users on public assistance by denying them advances while still charging monthly fees.

Who may qualify: Anyone who used FloatMe and paid for instant cash advances. Note: the FTC already sent refunds to FloatMe users in September 2024. This is a separate legal action.

Type: Mass arbitration (Milberg) Deadline: Registration still open

Sign up: form.classaction.org/f/FloatMe

Klover

What’s alleged: Klover is accused of calling its cash advances simple paycheck advances when they may actually be high-interest loans that failed to properly disclose fees and true costs to users.

Who may qualify: Anyone who got a cash advance through Klover.

Type: Mass arbitration (Milberg) Deadline: Registration still open

Sign up: form.classaction.org/f/Klover

borrow $250 from MoneyLion on phone screen

MoneyLion (Instacash)

What’s alleged: MoneyLion’s Instacash product advertises zero-interest advances but charges mandatory fees for instant delivery and pressures users to tip — resulting in effective interest rates of 200–500%+. The New York Attorney General sued in April 2025, and the city of Baltimore filed a separate lawsuit in October 2025.

Who may qualify: Anyone who used MoneyLion Instacash within the last 2 years. Your best option depends on where you live:

New York residents: The NY Attorney General is suing MoneyLion for illegal lending and seeking restitution for affected New Yorkers. The case is still in court — no consumer sign-up yet. If the AG wins, NY residents may receive refunds automatically. Monitor: ag.ny.gov
Baltimore / Maryland residents: The city of Baltimore filed a separate lawsuit against MoneyLion in October 2025 under Maryland consumer protection laws. Monitor for updates as this case develops.
All other users: You can sign up now for mass arbitration through Milberg at no cost. If you win, attorneys take a percentage — you pay nothing upfront.

Potential payout: $100s (Milberg estimate) Deadline: Registration still open

Sign up: form.classaction.org/f/MoneyLion

Payactiv

What’s alleged: Payactiv is accused of charging fees on what it markets as free or low-cost earned wage access, potentially disguising those fees as interest in violation of lending laws.

Who may qualify: Anyone who used Payactiv to access wages early.

Type: Mass arbitration (Milberg) Deadline: Registration still open

Sign up: form.classaction.org/f/Payactiv

Author
Recent Posts

Mitchel Harad

Cash Advance App Lawsuits and Settlements: You May Be Owed Money

What Are These Lawsuits About?

Apps That Have Already Paid Out

How to Sign Up — and What to Expect