DailyPay, MoneyLion Accused of Predatory Lending in NY Suit

Digital finance platforms MoneyLion Inc. and DailyPay Inc. allegedly took advantage of New Yorkers with illegal high-interest loans, according to two suits filed by state Attorney General Letitia James (D) Monday.

The suits ask the Manhattan Supreme Court to prohibit the companies from offering paycheck advances that incur fees above the rates allowed under state law, require they include “clear and conspicuous disclosure of all fees in equal prominence” in their advertising, and pay restitution and civil penalties.

“This action concerns a modern, technology-driven attempt to evade New York’s usury laws,” the state says.

DailyPay sued James in federal court ...