Online Lending Startup Tries To Push Usury Suit To Arbitration
By Reenat Sinay (July 10, 2019, 4:11 PM EDT) -- Online lending startup MoneyLion told a North Carolina federal court Tuesday that a suit over alleged unlicensed payday lending belongs in arbitration, arguing the proposed class of borrowers had signed valid arbitration agreements when taking out their loans.
MoneyLion is accused of saddling North Carolina borrowers with short-term loans that have exorbitant interest rates and "draconian" terms without a license to lend in the state, in violation of state and federal law, according to the complaint.
But because the borrowers, led by named plaintiff Lewis Corpening, had signed a series of documents that included arbitration provisions to receive their loans and...
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