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MoneyLion TAMED in Minnesota

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MoneyLion TAMED in Minnesota

645% Interest Rate Loans!

Andy Spears
Jan 5, 2022
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MoneyLion TAMED in Minnesota

advocateandy.substack.com

The Minnesota Department of Commerce has announced a settlement with online lending platform MoneyLion that will result in refunds to some borrowers as well as a fine paid by MoneyLion.

MoneyLion violated Minnesota state law by failing to be licensed by the state when it provided Minnesota-based consumers with certain loans with excessive annual interest rates of up to 645%. The settlement includes more than 700 loans issued to Minnesota consumers between November 7, 2016 and September 15, 2017. These loans ranged from $300 to $2,000 and MoneyLion charged interest rates from 9.79% to 645%.

The settlement requires MoneyLion to cancel or forgive certain loans and to refund $250 to certain Minnesota consumers. The settlement also imposes a $100,000 fine to the State of Minnesota.

READ MORE on the taming of a predatory lender>

Photo by Ingo Stiller on Unsplash

Predatory Loan Prevention Act Working to Protect Illinois Consumers

The Woodstock Institute sent an email highlighting the benefits of a new law in Illinois — the Predatory Loan Prevention Act.

In the email, Woodstock notes:

Comparing a 5-month period in 2019 to the same period in 2021, Illinois consumers saved over $200 million in fees for high-cost loans. At the same time, Capital Good Fund, a nonprofit small-dollar lender, reported a daily application volume increase of over 70% within days of the law’s signing. Not yet reported are the loans made by other affordable online lenders since the PLPA.

MORE>

More Headlines:

Consumer Group Takes Aim at Big Tech Privacy Invasion

Early Wage Access: High Interest Loans in Disguise?

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MoneyLion TAMED in Minnesota

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