DailyPay seeks to dismiss NY lawsuit

Core Insights - The lawsuit filed by New York Attorney General Letitia James against MoneyLion and DailyPay is argued by the companies to be misaligned with federal regulations, claiming that their services do not constitute loans [3][6] - Both companies are facing allegations of making illegal loans with exorbitant interest rates, which they contest by stating that their services are not loans and therefore do not violate usury laws [4][6] Group 1: Legal Proceedings - MoneyLion and DailyPay have filed motions to dismiss the complaints from the New York Attorney General's office, asserting that their earned wage access services are not loans [6] - The Attorney General's office claims that the fees charged by these companies result in annual interest rates in the triple digits, which they consider abusive lending practices [4] - DailyPay charges a transaction fee ranging from $3.49 to $3.99 for expedited fund delivery, while MoneyLion claims to have no costs for standard wage advances and only charges for instant cash delivery [4] Group 2: Regulatory Context - The Consumer Financial Protection Bureau has indicated that many earned wage access products, including those offered by DailyPay and MoneyLion, are not classified as loans [5][6] - If DailyPay's motion to dismiss is not granted, the company seeks to convert the legal proceedings into a plenary action, which would allow for discovery rights and a jury trial [6]