Overview

• The complaint, filed by Baltimore’s Department of Law with co-counsel Berger Montague, alleges violations of the city’s Consumer Protection Ordinance tied to MoneyLion’s Instacash product.
• Baltimore says optional tips and instant-access fees drive effective costs to more than 10 times the state’s 33% APR limit, citing examples near 350% and as high as 900%.
• The suit challenges MoneyLion’s claims that Instacash advances are not loans and carry 0% APR, alleging tip-prompting in the app and the absence of a Maryland lending license.
• City lawyers also dispute “up to $500” marketing, noting advances are capped at $100 each, which can require multiple transactions with separate fees and suggested tips.
• The case cites a Center for Responsible Lending study showing repeated advances and higher overdraft fees among users, seeks restitution of fees and tips plus clearer disclosures, and notes MoneyLion has not responded to requests for comment.