MoneyLion Agrees to Pay $1.75 Million to Customers in CFPB Deal

MoneyLion Inc. agreed to return $1.75 million to customers in a settlement resolving Biden-era Consumer Financial Protection Bureau claims that the financial technology company offered loans to active-duty military personnel with illegal interest rates.

But MoneyLion will be allowed to exclude its membership fees in calculating interest rates on loans and avoid paying a civil money penalty to the CFPB under the deal filed Friday in the US District Court for the Southern District of New York.

Consumer advocates say excluding some fees from interest rate calculations allows companies to offer loans that cost more than the 36% interest rate ...