Colorado Attorney General reaches settlement with money lender
GRAND JUNCTION, Colo. (KKCO) - Today Colorado’s Attorney General Phil Weiser reached a $350,000 dollar settlement with lender MoneyLion.
An investigation by the Colorado Department of Law found the lending company collected illegal membership fees from Coloradans who have loans.
MoneyLion claimed consumers could obtain loans as low as 5.99% APR. The rates advertised were only available if consumers paid a monthly membership fee. MoneyLion claimed consumers could cancel memberships at any time but prohibited them from doing so once a loan was taken out.
The investigation found that MoneyLion’s practices violated the Colorado Uniform Consumer Credit Code. Under the settlement, MoneyLion agreed to stop lending in Colorado under their current membership model without first getting a license.
The lender also agreed to return $271,000 to Coloradans and pay the Attorney General’s office $75,000.
Borrowers who are having issues with their loan or lender can file a complaint with the Colorado Attorney General.
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