MoneyLion sued by New York AG over high interest rates

New York Attorney General Letitia James sued payday lenders MoneyLion (ML) and DailyPay “for taking advantage of tens of thousands of New Yorkers with illegal high-interest loans.” James said in a statement, “Both MoneyLion and DailyPay make paycheck advance loans to hourly workers in exchange for fees and tips, pretending to simply be advancing ‘earned’ wages. Due to the short terms of the loans, the fees MoneyLion and DailyPay charge amount to outrageous annual interest rates in the triple digits, frequently up to 750 percent. Both payday lenders also engage in abusive tactics that push workers to frequently take out new loans to cover gaps created by their prior loans. With these lawsuits, Attorney General James is seeking to end MoneyLion and DailyPay’s illegal payday lending practices in New York, obtain restitution for tens of thousands of impacted workers, and impose civil penalties.”