Baltimore Sues MoneyLion Over Alleged Predatory Lending Practices
The City of Baltimore has filed a lawsuit against MoneyLion Technologies Inc., accusing the fintech company of using misleading marketing and charging excessive fees that trap low-income residents in cycles of debt.
Mayor Brandon Scott announced the legal action Monday, calling the company’s operations “a digital-age payday lending scheme.”
According to the complaint, filed by Baltimore’s Department of Law with co-counsel Berger Montague, MoneyLion allegedly violated the city’s Consumer Protection Ordinance by promoting small, short-term “Instacash Advances” with deceptive terms.
“MoneyLion has preyed on Baltimoreans, trapping our most vulnerable residents in borrowing cycles that made it harder and harder for them to pay bills and put food on the table,” Scott said. “Not only is that wrong, it’s illegal. We’re committed to holding MoneyLion accountable.”
The lawsuit marks a growing effort by cities and regulators nationwide to crack down on fintech companies accused of exploiting borrowers with high fees and confusing terms.
