MoneyLion fees and interest rate lawsuit investigation

Shamis & Gentile P.A., one of the nation's premier class action law firms with a primary focus in arbitration cases, is investigating potential claims against MoneyLion.

If you have a dispute with the company, you may be eligible for compensation through arbitration.

About MoneyLion

MoneyLion is a FinTech company founded in 2013 and headquartered in New York. It operates a consumer-facing “super app” that offers banking-style accounts, cash advances, credit-related products, and investing tools to millions of users across the United States.

MoneyLion’s Instacash product is marketed as an “earned wage access” or “0% APR” cash advance service that can provide up to $500 before payday, often “within minutes,” with “no interest” and “no credit check.” These representations are central to the concerns now being raised by regulators and consumer advocates.

Why is MoneyLion being investigated?

In April 2025, the New York Attorney General filed a lawsuit against MoneyLion, alleging that its Instacash “earned wage” advances are in reality high-cost payday loans that violate New York’s usury and consumer protection laws.

In May 2025, the National Consumer Law Center highlighted the case as an example of how “0% APR” earned wage products can become extremely expensive for workers.

According to the allegations in that lawsuit and related public reports, MoneyLion:

• Disguised high interest as “fees” and “tips”
  
  • Advertised Instacash as “0% APR,” “interest-free” and “fee-free,” yet nearly 9 in 10 advances allegedly carried a Turbo fee, a tip, or both
  • Common transactions allegedly included:
    
    • $100 advance, repaid in about two weeks, with an $8.99 Turbo fee (about 234% APR)
    • $50 advance, repaid in about two weeks, with a $4.99 Turbo fee (about 260% APR)
      
  • When tips are added, the average cost of these small advances was alleged to exceed 800% APR

• Used “Turbo” instant-access fees that functioned like interest
  
  • To get money “within minutes,” users allegedly had to pay a Turbo fee that could be as high as $8.99 on a $100 advance
  • The fee increased as the advance amount increased, similar to how interest works
  • For RoarMoney account users, advocates allege MoneyLion artificially delayed “no-fee” deposits and prioritized instant, fee-based transfers, even though the actual cost of instant transfers to MoneyLion was only pennies

• Pressured users to “tip” in ways that were not truly voluntary
  
  • The app allegedly:
    
    • Preselected a tip amount (never $0)
    • Used guilt-based and fear-based messages implying Instacash might not remain available if users did not tip
    • Showed repeated “friction” and “retargeting” screens if users tried to set tips to zero
  • Internally, tips were allegedly treated as a revenue stream, not as optional support

• Limited single-transaction amounts to generate more fees
  
  • While advertising advances “up to $250” or “up to $500,” MoneyLion allegedly capped each individual Instacash transaction at $50 or $100
  • To get $250 or $500 instantly, a user allegedly had to take multiple advances back-to-back, paying multiple Turbo fees and often multiple tips

• Created and profited from repeat-borrowing cycles
  
  • The New York Attorney General alleges that:
    
    • Around 40% of users who paid fees did so on 10 or more advances per month
    • About 1 in 5 users took an advance roughly every other day, paying around $57 per month in fees and tips
    • The 10% most frequent users paid hundreds of dollars per year in fees and tips
  • Internal documents cited in the complaint allegedly show MoneyLion designed “boosts,” “peer boosts,” and one-click advance features to increase repeat usage and revenue

• Aggressively debited bank accounts and triggered overdrafts
  
  • MoneyLion allegedly:
    
    • Predicted when a user’s paycheck would hit and attempted to debit repayment immediately, sometimes even before the deposit arrived
    • Retried debits daily until repaid, and sometimes took partial payments
    • For RoarMoney users, prioritized its own repayment over other transactions
  • Consumers reportedly complained that these debits caused overdraft and other bank fees

• Made it difficult to stop repayment or revoke authorization
  
  • Although MoneyLion publicly suggested there was “no obligation” to repay, the Attorney General alleges:
    
    • Users had to navigate a confusing, multi-step process across several menus to revoke payment authorization
    • MoneyLion required three business days’ notice, making revocation practically impossible for short-term advances
    • Users who revoked authorizations could lose access not only to Instacash but to other app features, and RoarMoney users effectively had to give up their accounts

These allegations raise serious questions about whether consumers across the country may have been harmed by similar practices and whether they may be entitled to compensation.

Your Rights and Next Steps

If someone used MoneyLion’s Instacash or related cash advance services and paid Turbo fees, tips, or other charges, they may have legal rights to seek relief, even if:

• The amounts were “small” each time
• They agreed to the terms in the app
• They have since repaid all advances
• Their account is now closed

The lawyers working with Shamis & Gentile P.A. are actively reviewing MoneyLion Instacash accounts and related complaints from consumers nationwide. They are prepared to evaluate whether individual users may have viable arbitration claims seeking refunds and other relief.

If someone believes they were charged unfair fees or trapped in repeat borrowing through MoneyLion’s Instacash or similar products, they are invited to share their story for a free, no-obligation review.

To see if they may qualify to participate in a potential arbitration against MoneyLion, they should complete the form at the bottom of this page.