Discover more from Advocate Andy
MoneyLion TAMED in Minnesota
645% Interest Rate Loans!
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.
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.