Why Shares of MoneyLion Popped Today
After falling sharply yesterday, shares of the fintech company MoneyLion (NYSE: ML) have jumped more than 30% as of 10:54 a.m. ET today after the company responded to a complaint filed by the Consumer Financial Protection Bureau (CFPB) yesterday.
The CFPB is suing MoneyLion for allegedly charging illegal fees to members of the military and their dependents. The main accusation is that MoneyLion charged annual percentage rates on loans over the legal 36% cap.
"MoneyLion targeted military families by illegally extracting fees and making it difficult to cancel monthly subscriptions," CFPB director Rohit Chopra said in a statement. "Companies are breaking the law when they require monthly membership fees to obtain loans and then create barriers to canceling those memberships."
Source Fool.com
