“Deeply Troubling,” Says National Consumer Law Center
Shennan Kavanagh of the National Consumer Law Center said the group is reassured only by the judge’s confirmation that the ruling carries no precedential weight.
“The CFPB’s settlement attempts to carve out exclusions Congress never authorized,” she said. “It is deeply troubling that the agency charged with protecting military families would endorse language that weakens those protections.”
Where the Money Is Going
The settlement dedicates $1.75 million to military borrowers with MoneyLion loans issued between December 2017 and October 2024 who either paid membership fees or were barred from canceling their memberships.
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$1.72 million is earmarked for borrowers who paid the fees.
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The remainder goes to those who attempted and failed to cancel.
Restrictions Imposed on MoneyLion
Under the agreement, MoneyLion is:
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Barred from issuing credit to covered borrowers with APRs above 36%.
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Prohibited from blocking membership cancellations, even when loans remain outstanding.
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Forbidden from collecting on old unpaid membership fees.
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Prevented from reporting negative credit information tied to unpaid fees — and must take “reasonable” steps to scrub existing reports.
The Lawyers Behind the Battle
The National Consumer Law Center is represented by Shennan Kavanagh.
Pearson Warshaw LLP: Melissa Weiner and Ryan Gott.
Varnell & Warwick PA: Janet Varnell and Christopher Brochu.
East End Trial Group LLC: Kevin Abramowicz.
The CFPB: David Dudley and Miriam Lederer.
MoneyLion: James Kim of Cooley LLP.
