Montco Files Lawsuit Against Predatory Payday Lenders, MoneyLion And Dave: DA

NORRISTOWN, PA — Montgomery County has filed lawsuits against digital payday lenders MoneyLion and Dave for predatory practices that charge illegal, extremely high interest loans, the district attorney's office announced Monday.

MoneyLion and Dave are among a group of institutions that obtain banking information from customers and then offer small advances on their next paycheck.

Between fees, tips, and other charges that were automatically withdrawn from the next paycheck, the advances helped trap consumers into ever-worsening cycles of debt, the DA's office said.

"Residents should be able to trust that businesses are operating honestly and within the bounds of the law," Montgomery County Commissioner Thomas DiBello said in a statement. "The County is committed to working with our partners to protect consumers and pursue accountability when that trust is violated."

It marks the first lawsuits against digital payday lenders ever in Pennsylvania.

Traditional payday lending, even before the advent of digital banking, has long been outlawed in the state due to high fees and very short repayment periods.

The suits were filed as part of a new collaboration between the DA's office and the county Solicitor's Office to crack down on deceptive businesses. Similar litigation is also underway against Vivid Seats and social media companies.