NEW YORK, Nov 21 (Reuters) – The U.S. Consumer Financial Protection Bureau reached a $1.75 million settlement with MoneyLion to settle charges that the online lender overcharged military personnel on loans, in possibly one of the agency’s final actions as it winds down enforcement activity.
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The CFPB said the overcharges combined interest rates and membership fees for a program to access low-cost loans, and MoneyLion did not let borrowers cancel memberships until their loans were paid off.
According to a Friday filing in Manhattan federal court, the payout will be distributed, mostly pro rata, to borrowers between December 1, 2017 and October 11, 2024.
MoneyLion also agreed to let borrowers cancel memberships even if they had unpaid loan balances or membership fees.
It did not admit or deny wrongdoing in agreeing to the settlement, which requires court approval.
US CFPB settles with MoneyLion as enforcement activity winds down
