Banking and Finance Law Daily Wrap Up, ENFORCEMENT ACTIONS—S.D.N.Y.: CFPB, MoneyLion reach ‘agreement in principle’ on injunctive and monetary terms, (Oct 16, 2025)

By Justin Marcus Smith, J.D.

At the time the CFPB filed its lawsuit under then-Director Rohit Chopra, MoneyLion declaimed the complaint as “without merit” and said it had already been cooperating with the CFPB for three years.

The attorneys for defendant MoneyLion Technologies Inc. (MoneyLion) and the Consumer Financial Protection Bureau (CFPB) formally notified the federal district court in lower Manhattan about a likely resolution of CFPB allegations that MoneyLion violated the Military Lending Act (MLA). The parties said they expect to submit a proposed stipulated judgment with injunctive and monetary terms by Nov. 3, 2025. The judicial complaint about Military Lending Act violations was said to be the fourth such action under former CFPB Director Rohit Chopra at the time the CFPB filed it. Apart from the bare description of a possible stipulated judgment, MoneyLion neither admitted nor denied liability (CFPB v. MoneyLion Technologies Inc., No. 1:22-cv-08308-JPC (S.D.N.Y. Oct. 15, 2025)).

In 2022, the CFPB filed a judicial complaint alleging that MoneyLion and 38 of its subsidiaries violated the MLA by imposing fees and interest rates that collectively exceeded the 36-percent annual percentage rate cap. The suit also alleged that MoneyLion required customers to join a membership program to access certain preferred interest rates and would not allow customers to cancel that membership until the loans were paid. MoneyLion was highly critical of the suit. It accused the CFPB of prioritizing “headlines” over “constructive dialogue” (see Banking and Finance Law Daily, Sept. 30, 2022).

On Oct. 15, 2025, CFPB counselors David Dudley and Miriam Lederer, with Cooley LLP Partner James Kim representing MoneyLion, submitted a joint letter-motion to the court. The letter-motion requested an adjournment of briefing on the pending July 21, 2025, MoneyLion Fed. R. Civ. P. 12(c) motion for judgment on the pleadings.

The counselors informed the court that the parties “reached an agreement in principle” to fully resolve the action, inclusive of injunctive and monetary terms. Details remain to be hammered out, but the parties told the court they expect to submit a proposed stipulated judgment and request to enter judgment by Nov. 3, 2025. The counselors also said the parties are “diligently working” through any issues.

The letter-motion otherwise recited previously decided briefing schedules and requests for extensions pursuant to the court’s R. 3.B. The parties said their requested extension of briefing on the MoneyLion motion for judgment on the pleadings will not affect other scheduled deadlines. The parties referenced how the court had previously vacated its order for an initial pretrial conference and granted the parties’ joint request to stay discovery in light of settlement discussions.

Attorneys: James Kim (Cooley LLP) for MoneyLion Technologies Inc. David Dudley and Miriam Lederer for the Consumer Financial Protection Bureau.

Companies: MoneyLion Technologies Inc.

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