How Dangerous IS MoneyLion?

Fintech lender runs afoul of Military Lending Act

Photo by Elie Khoury on Unsplash

I’ve written before about fintech lender MoneyLion and their penchant for skirting the law. Such as in Minnesota where they were caught charging interest rates in excess of 600%.

Minnesota Borrowers to Receive Refunds in State’s Settlement with MoneyLion

Now, the Consumer Financial Protection Bureau (CFPB) is suing MoneyLion alleging the company violated the Military Lending Act by charging servicemembers interest rates in excess of 36%. It is also alleged that MoneyLion refused to cancel memberships — and kept charging fees even after customers asked to cancel or paid loans in full.

Here’s more from NewsBreak:

“MoneyLion targeted military families by illegally extracting fees and making it difficult to cancel monthly subscriptions,” said CFPB Director Rohit Chopra. “Companies are breaking the law when they require monthly membership fees to obtain loans and then create barriers to canceling those memberships.”

The CFPB is suing to enforce the Military Lending Act and is alleging MoneyLion’s actions harmed consumers by: