Business ProfileforMoneyLion, Inc.

BBB files indicate a Pattern of Complaints concerning fulfillment of transactions, billing errors, and customer relations for MoneyLion, Inc. In April 2019, consumers were telling BBB about the issues they are experiencing with their accounts and the company's customer service department. A number of consumers say they have problems making loan payments, experience errors or holds in transactions they attempt when using one of MoneyLion's financial products. Other customers claim the confusion and technical issues with their MoneyLion accounts have resulted in missed payments being reported to credit bureaus; some of which consumers claim are erroneous and have to be disputed. Many consumers allegedly attempt to contact the company to resolve their problems but end up frustrated and without resolution by the lack of communication by the company. 

As of September 2024, BBB is still noting persistent issues in complaints about account issues, such as frozen or closed accounts, and incorrect, missing, and delayed application of payments or release of funds. There are numerous claims about the lack of sufficient customer service to address the reported problems including incomplete information from MoneyLion representatives or repeated requests for what consumers say is the same information or documentation which were already provided to the company.

The following describes a pending government action that has been formally brought by a government agency but has not yet been resolved. We are providing a summary of the governments allegations, which have not yet been proven.

On 9/28/2022, the Consumer Financial Protection Bureau (CFPB) announced that it had sued MoneyLion Technologies, an online lender, and 38 of its subsidiaries, for imposing illegal and excessive charges on servicemembers and their dependents. The CFPB alleges that MoneyLion violated the Military Lending Act by charging more than the legally allowable 36% rate cap on loans to servicemembers and their dependents, through a combination of stated interest rates and monthly membership fees. The CFPB also alleges MoneyLion required customers to join a membership program to access certain “low-APR” loans, and then did not allow them to cancel their memberships until their loans were paid.

MoneyLion, based in New York City, is a financial technology company that offers online installment loans and other products. MoneyLion requires customers to join a MoneyLion membership program and pay monthly membership fees to access what it markets as its “low-APR” installment loan product.

The CFPB alleges that MoneyLion’s practices violated the Consumer Financial Protection Act and the Military Lending Act. The Military Lending Act protects active duty servicemembers and their dependents, including by limiting the annual percentage rate applicable to credit extended to servicemembers and their dependents to 36%. Specifically, MoneyLion allegedly harmed consumers by:

-Overcharging and deceiving servicemembers and military dependents: MoneyLion imposed membership fees on covered borrowers that, when combined with loan-interest-rate charges, exceeded the Military Lending Act’s 36% rate cap. MoneyLion deceived these borrowers by representing that they owed loan payments and fees that they did not actually owe because the loans were void under the Military Lending Act.
-Refusing to allow customers to exit its membership programs and stop paying monthly fees: To access what MoneyLion markets as its “low-APR” installment loan, the company required consumers to join its membership programs and pay monthly membership fees, which ranged from $19.99 to $29. MoneyLion falsely led many consumers to believe that they could cancel their memberships at any time. In fact, MoneyLion refused customers’ requests to cancel memberships, and to stop paying membership fees, if they had outstanding loan balances. In some cases, MoneyLion refused to cancel memberships after loan payoff if consumers had any unpaid membership fees.

Enforcement Action
Under the Consumer Financial Protection Act, the CFPB has the authority to take action against companies that violate consumer financial protection laws, including engaging in unfair, deceptive, or abusive acts or practices. The CFPB also has authority to enforce the Military Lending Act’s protections for servicemembers and their dependents. The CFPB is seeking monetary relief for consumers, disgorgement of unjust gains, an end to MoneyLion’s unlawful practices, and a civil money penalty.

The complaint is not a final finding or ruling that the defendants have violated the law. Consumers, including servicemembers and their families, can submit complaints about financial products and services by visiting the CFPB’s website or by calling (855) 411-2372.