The class action complaint alleged predatory lending practices by the defendant. According to attorneys for the class, MoneyLion offered consumers closed-end, installment loans between January and July 2017 despite not having the license to do so. Additionally, the company allegedly charged consumers annual interest rates as high as 359 percent APR.
It is estimated that the settlement deal will save plaintiffs about $3 million in fees and interest.
According to the terms of the deal, MoneyLion will pay $359,811.50 in refunds, and surrender $2,354,097.05 in illegal interest. Further, it will pay $10,000 in civil penalties, $20,000 in costs and fees, and be banned from making misrepresentations about its license status, allowable interest rates and allowable fees.