Baltimore Sues MoneyLion Over Alleged Predatory Lending Practices

The City of Baltimore, led by Mayor Brandon Scott, has filed a lawsuit against MoneyLion Technologies Inc., accusing the fintech company of deceptive marketing and charging excessive fees on small, short-term loans called Instacash Advances. The lawsuit alleges that MoneyLion's practices, including hidden "tips" and fees, push interest rates well beyond Maryland's legal cap of 33%, trapping low-income residents in cycles of debt that make it harder for them to manage daily expenses. City officials and outside counsel from Berger Montague highlight that these tactics disproportionately harm vulnerable borrowers by encouraging repeated borrowing and generating overdraft fees, a pattern supported by research from the Center for Responsible Lending. Baltimore's Department of Law and legal partners emphasize the necessity of local action to protect consumers amid waning federal oversight. MoneyLion, which markets itself as a platform aiming to empower financial decisions, has not yet responded to the allegations. The lawsuit represents a concerted effort to hold the company accountable for what city leaders describe as predatory lending practices violating Baltimore's Consumer Protection Ordinance.