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MoneyLion’s Membership Lending Model Elicits Roar from Colorado AG

  • Colorado AG Phil Weiser settled with MoneyLion Technologies Inc. and MoneyLion of Colorado LLC (collectively, “MoneyLion”) to resolve allegations that the lender charged consumers illegal membership fees tied to loans in violation of the Colorado Uniform Consumer Credit Code.
  • AG Weiser alleges that MoneyLion advertised loans with a low interest rate, but only made those rates available to individuals who paid a monthly membership fee. The company allegedly prohibited consumers from cancelling those memberships once they had taken out a loan, despite assertions that memberships could be cancelled at any time.
  • Under the terms of the settlement, MoneyLion must refund $271,000 to Colorado consumers, pay $75,000 to the AG’s office for restitution or other purposes, and is prohibited from utilizing a membership model for loans made in Colorado.