Overview

• The Department of Law filed the complaint with co-counsel Berger Montague, and Mayor Brandon Scott announced the action on Monday.
• The suit alleges Instacash is promoted as zero interest while optional tips and fees push effective borrowing costs above Maryland’s 33% APR cap, in some cases more than tenfold.
• City officials say MoneyLion hides or misrepresents costs and pressures users to tip, resulting in what the complaint describes as usurious charges.
• The filing cites Center for Responsible Lending research showing nearly three-quarters of users take multiple advances within two weeks and that overdraft fees often rise afterward.
• MoneyLion did not immediately respond to requests for comment, and the case could test Baltimore’s local consumer-protection enforcement as the city pursues other corporate litigation.