by Sharelle B. McNair
October 8, 2025
Because the Trump Administration eased insurance policies surrounding company oversight, Baltimore Metropolis Solicitor Ebony Thompson challenges extra native governments to go after corporations with “unhealthy company conduct.”
The town of Baltimore introduced plans to sue know-how firm MoneyLion Applied sciences Inc. over alleged discriminatory practices that town says stored its Black residents in a steady cycle of debt, The Baltimore Solar reported.
In an announcement by Mayor Brandon Scott, the lawsuit, in collaboration with Berger Montague, accuses MoneyLion of violating town’s Shopper Safety Ordinance by means of deceptive advertising and marketing initiatives, particularly by selling high-cost, short-term loans underneath the guise of “Instacash Advances.”
The litigation claims that MoneyLion lured residents in by advertising and marketing Instacash Advances as a distinct type of payday lending, providing prospects “zero-interest loans.”
Nevertheless, Attraction Metropolis alleges the narrative didn’t alert shoppers in regards to the hidden charges that got here with it and as an alternative, inspired customers to pay “suggestions” that resulted in rates of interest greater than 10 instances the 33% APR cap established by Maryland regulation, in accordance with CBS Information.
In an announcement, Scott stated the corporate trapped town’s most susceptible residents. “MoneyLion has preyed on Baltimoreans, trapping our most susceptible residents in borrowing cycles that made it more durable and more durable for them to pay payments and put meals on the desk,” the mayor stated.
“Not solely is that unsuitable, it’s unlawful. We’re dedicated to holding MoneyLion accountable — as we’ve finished for different huge companies making an attempt to make the most of our residents.”
Information to assist Baltimore’s debt declare was included within the lawsuit. Analysis from the Heart for Accountable Lending confirmed that Individuals who use apps equivalent to MoneyLion are liable to incurring extra overdraft charges and taking out a number of advances inside weeks of creating an account. The town argues that patterns revealed by the information show how shoppers grow to be trapped in recurring debt. Berger Montague legal professional James Hannaway says the go well with is the “first step in stopping MoneyLion from preying on Baltimore’s most financially susceptible residents.”
Because the Trump Administration eased insurance policies surrounding company oversight, Baltimore Metropolis Solicitor Ebony Thompson issued a name to motion for native governments to observe in Baltimore’s footsteps, which has focused different main companies, difficult “unhealthy company conduct.” “Actions like these are sadly vital to guard shoppers from unhealthy company conduct,” Thompson stated.
“With the federal authorities now abdicating its tasks to shoppers, states and localities should choose up the slack.”
Former Baltimore Metropolis Solicitor Andre M. Davis celebrated town’s views, saying he can’t keep in mind the patron safety regulation ever being examined to this caliber.
Including MoneyLion to the listing, town has pending litigations towards sports activities betting giants, DraftKings and FanDuel, amid accusations that the businesses use unfair and misleading promoting practices to take advantage of susceptible communities, luring them into playing dependancy.
In partnership with the state of Maryland, each governments issued a go well with towards Austrian firearms producer Glock, alleging the corporate doesn’t do sufficient to cease merchandise from being reworked into unlawful machine weapons with auto sear gadgets also known as “Glock switches.”
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