Financial Technology
MoneyLion, Inc.Information and Alerts
Service Area
- Dutchess County, NY
- Greene County, NY
- Kings County, NY
- Nassau County, NY
- New York County, NY
Alert Details
This business has 2 alerts.
Pattern of Complaints
BBB files had indicated a Pattern of Complaints concerning fulfillment of transactions, billing errors, and customer relations for MoneyLion, Inc. in April 2019. As of September 2024, BBB was 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. As of January 2025, MoneyLion, Inc. has advised BBB that it is continuing to work to reduce its complaint volume and to alleviate the underlying issues in the Pattern of Complaints.
Government Action: BBB reports on known government actions involving business’ marketplace conduct:
CFPB Sues MoneyLion for Overcharging Servicemembers and Trapping Consumers in Costly Memberships
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.
Important Information
Additional Info
It has come to our attention that individuals have recently fraudulently utilized our name and logo in connection with loan and impersonation scams, primarily through email and SMS messaging. MoneyLion takes any attempts to fraudulently use our brand or impersonate support employees very seriously.
Please be aware that we will never solicit login credentials or sensitive banking information, including account numbers, social security numbers, verification codes, or passwords, via social media, email, or text message. We generally do not text customers unless they initiate a conversation with our Customer Care team via SMS messaging or request a one-time passcode (OTP) for two-factor authentication (2FA) verification purposes. Occasionally, we may send a text referring customers to email communication, but these messages will contain no links or specific details.
The only numbers we use for SMS messaging are “1-516-915-5466” (for customer service texts and calls) and “70404” (OTPs).
If you have any doubts about the validity of any communication received from MoneyLion, please contact our Customer Care team directly.
Government Actions
The following describes a government action that has been resolved by either a settlement or a decision by a court or administrative agency. If the matter is being appealed, it will be noted below.
On 11/14/2023, Colorado Attorney General Phil Weiser announced a settlement with consumer lender MoneyLion after an investigation by the Colorado Department of Law found the company collected illegal membership fees from Colorado consumers tied to loans.
The settlement includes $271,000 in restitution for Coloradans. MoneyLion claimed in marketing materials that consumers could obtain loans as low as 5.99% APR. However, these rates were only available if consumers paid monthly membership fees ranging from $19.99 to $29.99. Though the company said the memberships could be canceled at any time, the company prohibited consumers from canceling their memberships once they took out loans. The investigation found this practice violates the Colorado Uniform Consumer Credit Code.
Under the settlement, MoneyLion agreed to refrain from lending in Colorado under this membership model without first obtaining a license. MoneyLion also agreed to return $271,000 to Colorado consumers and pay the Attorney General’s office $75,000 that can be used for any restitution where possible, consumer or creditor education, consumer credit or consumer protection enforcement, or efforts to advance the public welfare.
Pending Government Action
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 April 14, 2025, New York Attorney General Letitia James sued payday lender MoneyLion Inc. (MoneyLion) for taking advantage of tens of thousands of New Yorkers with illegal high-interest loans. MoneyLion makes paycheck advance loans to hourly workers in exchange for fees and tips, pretending to simply be advancing “earned” wages. Due to the short terms of the loans, the fees MoneyLion and DailyPay charge amount to outrageous annual interest rates in the triple digits. This payday lender also engages in abusive tactics that push workers to frequently take out new loans to cover gaps created by their prior loans.
In a typical transaction with MoneyLion, a worker receives a small amount in advance of their paycheck – usually less than $100 – and repays that amount, plus fees and tips, in seven to ten days. The result is an extremely high annualized interest rate ranging between 200 percent and 350 percent on average, but rates for these short-term loans can reach much higher. More than half of all MoneyLion loans impose annual interest rates above 500 percent.
Attorney General James alleges that the company employs deceptive advertising to entice workers into taking out their exploitative loans. MoneyLion promises instant access to funds, a zero percent interest rate, and a fee-free product. In reality, it charges mandatory fees for all loans where funds are immediately available, which can be as high as $8.99 for a $100 advance scheduled to be repaid in two weeks from the time the loan is issued. This reflects an annual interest rate of 234 percent. To extract even more money from its customers, MoneyLion asks for tips on top of its fees and sets an artificial limit of $100 per transaction that forces workers to take out repeat loans and pay repeat fees merely to receive the $500 they are prominently promised in MoneyLion’s advertisements.
Attorney General James alleges that the company's practices constitute illegal and deceptive conduct and abusive lending practices that violate New York’s longstanding usury prohibitions. The lawsuits seeks to end both MoneyLion's technology-assisted payday lending practices in New York, obtain restitution for tens of thousands of workers, and impose civil penalties and costs.
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