Washington, D.C.— The Consumer Federation of America and Protect Borrowers today issued the following statement after the Trump-led Consumer Financial Protection Bureau (CFPB) filed a proposed stipulated judgement and order with installment lender MoneyLion that would bless the fintech’s Military Lending Act (MLA) violations.
Under the Trump administration’s leadership, the CFPB has dismissed the majority of pending lawsuits against corporate wrongdoers, but one of the few remaining enforcement cases involved MoneyLion. In 2022, the CFPB alleged that MoneyLion made loans to military families wildly in excess of the 36% interest rate cap under the Military Lending Act (MLA). The critical issue in the case hinged on whether the sham “membership fees” MoneyLion charges to military families are included when calculating the Military Annual Percentage Rate, and whether that rate exceeds the 36% interest rate cap put in place by the Military Lending Act. In a lengthy opinion from March 2025, the judge hearing this case ruled that the membership fees should be included when calculating the interest rate under the MLA, but the proposed consent order seeks to evade that opinion and exclude those fees from the calculation.
“This underhanded attempt by the CFPB to allow MoneyLion to continue violating the Military Lending Act is proof positive that Acting Director Vought is bending over backwards for predatory lenders and trying his hardest to make life unaffordable for military families,” said Erin Witte, director of consumer protection for Consumer Federation of America. “Any claims that the Bureau stands up for those who have served our country are pure lip service.”
“This sham order blesses illegal behavior,” said Mike Pierce, executive director of Protect Borrowers. “It purports to grant MoneyLion special permission to violate the Military Lending Act by disguising the true cost of credit through bogus membership fees charged to members of the military and their families. The Trump-Vought CFPB should be protecting servicemembers, not lenders that seek to exploit them.”
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About Consumer Federation of America
Consumer Federation of America is an association of non-profit consumer organizations that was established in 1968 to advance the consumer interest through research, advocacy, and education.
Learn more at consumerfed.org or follow CFA on Twitter at @ConsumerFed.
About Protect Borrowers
Protect Borrowers (formerly Student Borrower Protection Center) is a nonprofit organization led by a team of experts, lawyers, and advocates fighting to build an economy where debt doesn’t limit opportunity. We investigate financial abuses, take predatory companies to court, and push for policies to protect working people from debt traps. We aim to deliver immediate relief to families while building power, driving systemic change, and fighting for racial and economic justice.
Learn more at protectborrowers.org or follow us on social @BorrowerJustice.