The Brandon Scott administration today filed a lawsuit against MoneyLion Technologies Inc., accusing the New York City-based “fintech” platform of charging usurious interest rates that trap financially vulnerable residents.

Filed by the city law department and Berger Montague, the lawsuit claims that MoneyLion violated Baltimore’s consumer protection ordinance by promoting high-cost, short-term loans known as Instacash Advances.

“Turbo fees” and other “tips” added onto the cash advances can result in interest rates that are 10 times higher than Maryland’s maximum APR limit, the lawsuit says.

Typically advancing $25, $50 or $100 at a time to a customer, “MoneyLion hides and misrepresents these fees and manipulates consumers to collect the ‘tips’ [that] lead to a cycle of debt for consumers,” a press release from the mayor’s office alleged, adding that:

“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.”

Founded in 2013, MoneyLion says its goal is to “rewire the financial system” and “give everyone the power to make their best financial decisions.”

The vast majority of users take out cash advances or loans, ranging from $25 to $50,000, the latter at a stated interest rate of 35.99%.

Initially backed by BlackRock, Edison Partners and other private investment houses, the company went public in 2021 at a $2.4 billion valuation.

Its has garnered positive consumer feedback, with a 4.3-star rating by Trustpilot, despite negative reviews citing poor customer service and slower-than-promised fund transfers.

The platform continues to grow rapidly and has expanded into financial advisory services, largely tailored to first-time investors. It also offers cash to customers who play online games and participate in NASCAR racing giveaways.

A request for comment about the lawsuit was not immediately answered by the company.