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MoneyLion accused of overcharging military personnel on

loans

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Settlement includes $1.75 million payout

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MoneyLion' disagreed with allegations, pleased to settle

By Jonathan Stempel

NEW YORK, Nov 21 (Reuters) - The U.S. Consumer Financial

Protection Bureau reached a $1.75 million settlement with

MoneyLion to settle charges that the online lender overcharged

military personnel on loans, in possibly one of the agency's

final actions as it winds down enforcement activity.

MoneyLion, a unit of Gen Digital ( GEN ), had been accused

in a September 2022 lawsuit filed during the Biden

administration of imposing more than the legally permitted 36%

on loans to active service members and their families.

The CFPB said the overcharges combined interest rates and

membership fees for a program to access low-cost loans, and

MoneyLion did not let borrowers cancel memberships until their

loans were paid off.

According to a Friday filing in Manhattan federal court, the

payout will be distributed, mostly pro rata, to borrowers

between December 1, 2017 and October 11, 2024.

MoneyLion also agreed to let borrowers cancel memberships

even if they had unpaid loan balances or membership fees.

It did not admit or deny wrongdoing in agreeing to the

settlement, which requires court approval.

"While we disagree with the CFPB's allegations, we are glad

to put this matter behind us and focus on continuing to help

Americans improve their financial lives," MoneyLion said in a

statement.

The Trump administration has been trying to shut down the

CFPB, which during Democratic presidencies was an aggressive

watchdog over alleged financial misconduct.

Though a federal judge blocked a dismantling in March,

acting director Russell Vought has halted most of the CFPB's

work as the White House starved the agency of cash needed to

operate.

The CFPB is seeking to move its remaining enforcement cases

to the U.S. Department of Justice, four people with knowledge of

the matter said this week.