CFPB Announces Lawsuit Against MoneyLion – Investopedia
The Consumer Financial Protection Bureau (CFPB) has filed a lawsuit against the online lender MoneyLion. The federal agency alleges that the lender, which provides interest-free cash advances and other financial products and services, deceived and overcharged military service members and their families, and also lied about customers’ ability to cancel their membership.
The CFPB chose to take the legal action against the online lender and mobile banking platform for violating the Military Lending Act and the Consumer Financial Protection Act. According to the federal agency, the lender, which offers 0% APR cash advances, a credit-builder loan, banking and investment services and more, has engaged in the following:
In a press release, CFPB director Rohit Chopra stated, “Companies are breaking the law when they require monthly membership fees to obtain loans and then create barriers to canceling those memberships."
The lawsuit cites MoneyLion Technologies and 38 of its subsidiaries as defendants. You can read the full complaint on the CFPB website.
Consumer Financial Protection Bureau. "CFPB Sues MoneyLion for Overcharging Servicemembers and Trapping Consumers in Costly Memberships."
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