The probes have come from state and federal regulators including the Consumer Financial Protection Bureau [CFPB], the Securities and Exchange Commission [SEC], California Department of Financial Protection and Innovation and others, the news organization reported.
The investigative demands have been sent in the past couple of years, Banking Dive reported. For instance, the CFPB has sent the company civil investigative demands from 2019 to this year related to its membership model and its compliance with the Military Lending Act, a filing with the SEC shows.
MoneyLion said in the SEC filing that it doesn’t know how the probe is going to affect it financially or operationally.
Additionally, the company has obtained investigative subpoenas from the SEC related to its subsidiary, Invest in America Credit Fund 1 LLC. This subsidiary is what the company’s “credit and advance products are currently financed through,” the SEC filing reads.
In other recent fintech news, Clair, an earned wage access startup, raised $15 million in a Series A funding round according to a press release Thursday. The company, which helps advance wages for gig economy workers and contractors, says it will use the funding to continue expanding product offerings and explore markets such as healthcare and debt repayment according to TechCrunch.