Baltimore didn’t pull any punches when it announced last month the city was suing the company behind an app called MoneyLion that promises interest-free cash advances to get you a portion of your pay early.
“Not only is that wrong, it’s illegal,” Mayor Brandon Scott declared, discussing the city’s allegation that the app charges fees that add up to annual interest rates of more than 350% – or more than ten times Maryland’s legal cap of 33%.
“MoneyLion has preyed on Baltimoreans, trapping our most vulnerable residents in borrowing cycles that made it harder and harder for them to pay bills and put food on the table,” Scott said in a news release…