Why Did The CFPB File An Action Against MoneyLion On Behalf of Service members?
The Consumer Finance Protection Bureau ("CFPB") recently filed an action against MoneyLion alleging violations of service member rights under the Military Lending Act. In its complaint, the CFPB alleges MoneyLion violated the 36% interest rate cap provision under the Military Lending Act implemented to protect active service members against predatory and unlawful lending practices. In particular, MoneyLion is alleged to have required its customers to join a monthly membership club that offered virtually no benefit to service members other than access to high cost loans and made it incredibly difficult to cancel the membership. For additional details, see the link to the CFPB press release concerning the action it is taking against MoneyLion.
Are There Other Lenders Or Finance Companies That May Be Violating The Rights of Service Members?
The CFPB action follows a report earlier this year from the National Consumer Law Center addressing potential violations by EasyPay Finance of service member rights under the Military Lending Act. Manfred, APC is currently investigating potential claims active service members may have against EasyPay Finance and other lenders for potential violations of interest rate caps. If you are an active service member who is concerned about the applicable interest rates on a finance loan, please don't hesitate to reach out to us to for a confidential & respectful discussion and evaluation of your potential claims under the Military Lending Act.