Virginia says 3,800 consumers to receive refunds after settlement with alleged predatory lender

By Mark Iandolo | Feb 12, 2018

RICHMOND, Va. (Legal Newsline) — Virginia Attorney General Mark Herring announced that more than 3,800 consumers will receive refunds and debt forgiveness after a settlement with MoneyLion of Virginia LLC.

"As more Virginians turn to online lenders for small loans, they need to understand that these loans can be just as risky and predatory as a payday loan or auto title loan they might get at a brick-and-mortar store," Herring said in a statement. "My predatory lending unit is working every day to protect Virginia borrowers from deceptive and unlawful practices, but it's just as important that consumers take the time to consider all their options and any terms and conditions before taking out one of these loans. This settlement with MoneyLion [will] save Virginia borrowers nearly $3 million and send a strong message to online lenders that we are watching them closely."

According to Herring's office, MoneyLion offered consumers closed-end, installment loans between January and July 2017 despite not having the license to do so. Additionally, the company allegedly charged consumers annual interest rates as high as 359 percent APR.

MoneyLion will pay $359,811.50 in refunds, give up $2,354,097.05 in illegal interest, pay $10,000 in civil penalties, pay $20,000 in costs and fees, and be banned from making misrepresentations about its license status, allowable interest rates and allowable fees.

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