MoneyLion to Pay $1.75 Million to Settle CFPB Lawsuit Over Military Lending Act Violations – Monday, December 1, 2025

MoneyLion has agreed to pay $1.75 million to settle a lawsuit filed by the Consumer Financial Protection Bureau (CFPB) concerning alleged violations of the Military Lending Act (MLA). The settlement addresses issues related to interest rate caps and membership fees charged to military members.

Who should care: CFOs, fintech product leaders, payments executives, risk & compliance teams, and financial services technology decision-makers.

What happened?

MoneyLion, a fintech company, has reached a $1.75 million settlement with the CFPB following allegations that it violated the Military Lending Act. The CFPB claimed that MoneyLion charged military members fees and interest rates exceeding the 36% cap mandated by the MLA, which is designed to protect service members from predatory lending practices. This lawsuit was initiated to address concerns that MoneyLion’s lending practices potentially exploited military personnel by imposing excessive costs. The settlement reflects a significant enforcement action by the CFPB, underscoring the agency’s commitment to protecting service members from unfair financial treatment. Under the terms of the settlement, MoneyLion will pay the specified amount, signaling the seriousness with which regulators view compliance with consumer protection laws in the financial services sector. This case serves as a clear reminder that fintech companies must carefully monitor their lending products to ensure they do not violate established legal limits, particularly when serving vulnerable populations such as military members.

Why now?

The timing of this settlement highlights the CFPB’s intensified focus on curbing predatory lending, especially practices targeting military personnel. Over the past 6 to 18 months, regulatory scrutiny of financial institutions has increased, with a particular emphasis on compliance with consumer protection laws like the MLA. This heightened attention is part of a broader regulatory push aimed at ensuring fair treatment of consumers, especially vulnerable groups, amid growing concerns about financial exploitation within the fintech industry. The settlement reflects the CFPB’s proactive stance in enforcing these protections and signals to the market that non-compliance will result in significant consequences.

So what?

This settlement sends a clear message to financial institutions about the critical importance of strict adherence to regulatory standards such as the Military Lending Act. For fintech companies, it underscores the need to establish and maintain robust compliance frameworks to avoid costly legal challenges and reputational damage. Strategically, this case may prompt other financial services providers to conduct thorough reviews of their lending practices to ensure alignment with regulatory expectations and to safeguard consumer rights. Failure to do so could result in similar enforcement actions and financial penalties.

What this means for you:

• For CFOs: Prioritize reviewing and updating compliance strategies to ensure full adherence to the Military Lending Act and related regulations.
• For fintech product leaders: Conduct comprehensive evaluations of product offerings to confirm they do not inadvertently exceed regulatory caps on fees and interest rates.
• For risk & compliance teams: Enhance oversight and monitoring mechanisms to detect and prevent potential violations of consumer protection laws before they escalate.

Quick Hits

• Impact / Risk: The settlement highlights the significant financial and reputational risks associated with non-compliance with consumer protection laws.
• Operational Implication: Financial institutions may need to strengthen their compliance and auditing processes to mitigate the risk of similar legal challenges.
• Action This Week: Conduct a targeted compliance audit focusing on lending practices and brief executive teams on the critical importance of adhering to the Military Lending Act.