MoneyLion to refund Minnesotans, pay fine in state settlement
The Minnesota Department of Commerce announced Wednesday that it has reached a settlement with MoneyLion, an online lender, over a violation of state laws.
Under the settlement, MoneyLion will cancel or forgive certain loans and provide a refund to certain Minnesota consumers. The company will also pay the state a $100,000 fine.
The New York-based company failed to get licensed by the state before providing Minnesotans with loans that had interest rates up to 645%. State law requires regulated lenders to be licensed if loan interest rates are above statutorily allowed amounts. They also have to provide consumers with truth-in-lending disclosures and follow other requirements.
"As this case shows, Minnesota consumers who borrow from online lenders have protections under state law," Minnesota Department of Commerce Commissioner Grace Arnold said. "The Commerce Department works to ensure a fair marketplace for Minnesota consumers to do business."
Minnesotans can contact the Commerce Department’s Consumer Services Center at firstname.lastname@example.org or 651-539-1600.