BankTech

MoneyLion received investigative demands from regulators

The company discloses probes ahead of its $2.4B SPAC merger

Challenger bank MoneyLion announced last week that regulators have been sending investigative demands to the fintech company, Banking Dive reported.

Earlier this year, MoneyLion unveiled its plans to go public via a $2.4 billion merger with special purpose acquisition company Fusion Acquisition Corp.

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.

Latest Articles

CFPB orders ‘Big Tech’ to turn over payment system plans
Oct 21, 2021 By

The Consumer Financial Protection Bureau issued a series of orders Thursday that will require large tech companies to hand over information on their payments systems to better understand how these firms manage and access users personal data.

Content from our partners

Log In

Forgot Password?

Don't have an account? Please

Register

Forgot Password

Please enter your registered email address below to receive a password reset link.

Check Your Email

A password reset email has been sent to the email address on file for your account, but may take several minutes to show up in your inbox. Please wait at least 10 minutes before attempting another reset.

Welcome to FinAssist

Go to your inbox and open 'Welcome to FinAssist, your company discovery platform' to get started. You may also skip your inbox and 'Start tutorial'.