MoneyLion offers short-term cash advances through its Instacash product. Consumers can request advances through the MoneyLion app and repay the money later, usually when they receive their paycheck.
The claim alleges MoneyLion charged consumers mandatory monthly membership fees to access Instacash advances, but failed to clearly disclose those fees as part of the true borrowing cost.
Federal law requires lenders to clearly disclose the full cost of borrowing money before consumers agree to a credit transaction.
A federal court recently held that consumers plausibly alleged MoneyLion’s membership fees functioned as hidden finance charges tied to Instacash advances.
Labaton Keller Sucharow is investigating potential arbitration claims on behalf of consumers who used MoneyLion Instacash and paid recurring monthly membership fees.
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