Consumer complaint received 2020-08-27
Company: MoneyLion Inc.
State: WA
Product: Credit reporting, credit repair services, or other personal consumer reports
Sub-product: Credit reporting
Issue: Incorrect information on your report
Sub-issue: Account status incorrect

Complaint:
The following dispute is concerning the false/inaccurate credit reporting by MoneyLion Inc, over the course of more than one year timeframe during which the lender claimed on their app that my loan was Paid in Full with Final Payment pending. From around XXXX XX/XX/XXXX until about XXXX XX/XX/XXXX MoneyLions app showed payment pending and would not accept any more payments even after the note posted on my credit report claiming a balance of {$18.00} that MoneyLion support said I did not owe ( during a phone call around the beginning of XXXX after the credit report post was made ). The phone call during which I was told by MoneyLion I did not owe anything, and the problem would be resolved came after multiple attempts to get payment status updated. Prior to the beginning of XXXX, no over-the-phone contact seemed available and all attempts to correct the pending payment issue in MoneyLions system were sent in through the Help Center ticket system ( https : //MoneyLion.zendesk.com/hc/en-us ).  The MoneyLion Credit Builder Plus loan origination date was around XXXX XX/XX/XXXX using the MoneyLion app and my XXXX XXXX XXXX account ending in XXXX transaction number XXXX. Since the loan and repayment is app based, I send in help tickets to resolve issues in accordance with the information provided through the help and support links in the app and website. I sent into MoneyLions Help Center about six tickets to get the Payment Processing cleared, but each time I would receive a reply through their system saying that a support person would be calling only for the person to hang up the moment I would answer after about one or two rings and close the ticket with the false statement claiming that there was no response when the person hung up the moment I answered the phone. One important fact to understand is that MoneyLion does not accept any payments over the phone and everything is done over the App with notifications that can be sent to a phone and/or email. At no time was I notified that I owed any outstanding amount or that my MoneyLion Credit Builder Plus loan was not paid in full by MoneyLion apart from finding the false and misleading credit reporting. 
After reviewing my credit report around the beginning of XX/XX/XXXX, I saw that MoneyLion was still claiming that I was behind in payments and still had a balance of {$18.00} with varying amounts due possibly resulting from fraudulent interest and fee charges when the loan should have been closed by XXXX XX/XX/XXXX when the Pay in Full amount was taken from my XXXX XXXX XXXX account ending in XXXX ( transaction number XXXX ). Any claim that I was behind in payments or still had a balance of {$18.00} was inconsistent with what my account showed on the App before the beginning of XXXX which was over 6 months past the time I successfully submitted the Pay in Full amount. Although the option for making additional payments became available between the beginning of XXXX and XX/XX/XXXX, the app would not accept any payments due to the final payment still processing and even declined payments from a MoneyLion debit account where I uploaded {$70.00}. 
During a XXXX XX/XX/XXXX phone call into MoneyLion Help Center I was informed that the old tickets were all closed because MoneyLion upgraded to a new system, the Final Payment was stuck in a pending status because the missing {$18.00} was not included in the Paid in Full amount that had been processed, a new ticket would be submitted to fix the app so the missing amount could be paid, and that the missing amount needed to be corrected before credit disputes/corrections could be filed. The support person said that a confirmation email would be sent to me so I could use it in expediting the resolution of this credit reporting error but have not seen an email. Also, MoneyLion Support person said the ticket would take three to five business days, but around XXXXXXXX XXXX on XXXX XX/XX/XXXX I took a screen shot of the loan status stating, On track to be paid off by XX/XX/XXXX with a check mark next to the statement as processed and was able to submit the missing {$18.00} by clicking two separate links. 
MoneyLion has been slow and incompetent in fixing the issues with the payment system, negligent in notifying me that I still had a missing balance I would have paid XXXX XX/XX/XXXX if the system did not lock up on the Final Payment and prevent me from paying anything, and had continued reporting that I still had a loan with an unpaid balance which conflicted with both what was posted on my account and what I was told over the phone by MoneyLion support around the beginning of XXXX. Given that I have proof that ( even as recently as the day the missing {$18.00} was corrected ) MoneyLion app showed my pay-off/close date as XXXX XX/XX/XXXX, my credit report must be corrected to reflect the account close date as XXXX XX/XX/XXXX when the amount for Paid in Full was originally taken from my account. The missing {$18.00} that should have been included in the final payment was the fault of the MoneyLions payment system and incompetence of the MoneyLion staff in correcting this issue before it caused unnecessary damage to my credit. Furthermore, all false, inconsistent, and fraudulent claims that I was behind on payment ( s ) I was not informed of before discovering them on my credit report must not remain on my credit report. Another false claim by MoneyLion on my credit report is the status of the loan being in collections when I was never informed of such actions or that I even owed anything. Evidence that the loan never was in collections comes from the fact that after MoneyLion fixed the internal conflict on their end the missing {$18.00} was able to be corrected without talking with any collection agency and was posted on the app as if the loan was paid in full back on XXXX XX/XX/XXXX. Since the pay-off and correction of the missing {$18.00} were treated as though all had happened back on XXXX XX/XX/XXXX, correcting the credit report should be easy. Even though MoneyLion may try to push the date of correction, the date of correction does not dismiss their failure, negligence, and incompetence to have corrected this issue in XXXX of XXXX. 
One may go so far as to consider the actions of MoneyLion as an attempt to defraud a customer ( me ) of interest charges accumulated after their system either accidently or intentionally left the missing {$18.00} out of the Paid in Full amount, and even when the missing amount was being corrected required the customer ( me ) to click on two separate links to pay the full amount missing. One example of how shady MoneyLions business dealings were perceived in XX/XX/XXXX by another customer can be seen in the United States District Court ( XXXX XXXX of California ) case XXXX XXXX XXXX, No. XXXX ( https XXXX XXXX  ). I am not accusing MoneyLion of intentionally committing consumer fraud even though there seemed to be the attempt to charge interest after telling me that I did not owe anything, the reporting to credit bureaus that I was behind in payment ( s ) I was never informed existed, and during the time of saying one thing on my account and over the phone only to report something different MoneyLion allowed me to continue borrowing advances and making repayments through MonyLions Instacash link much like a debt trap. A trap whereby the lender keeps a debt the customer would have paid if the lenders system allowed it on the book which negatively impacts credit while still allowing the customer to borrow more with repayment options for everything except the metaphorical ball and chain anchored to a debt that would have been paid in the beginning. If the fraud/error was not intentional, why would the employees calling me about the tickets made in the beginning hang up right after I answer the phone and close the tickets without doing anything, told I owe nothing when I am finally able to contact a Moneylion support person even though the company reports something different, and told to expect three to five business days for a solution and a confirmation email explaining the system error and how it was not my fault the loan was not credited as Paid-off when I submitted the Paid in Full amount in XXXX of XXXX when I spell out the fraud during a XXXX XX/XX/XXXX conversation with MoneyLion without calling it such only for the error to be corrected in less than a day without any e-mail. 
In conclusion, the error with the missing {$18.00} from the Paid in Full amount originally taken out of my XXXX XXXX XXXX account ending in XXXX ( transaction number XXXX ) on XXXX XX/XX/XXXX has been corrected with a screen shot showing an XXXX XX/XX/XXXX date for the pay-off to be credited. One fix for the credit report regarding MoneyLion is to remove all by the XX/XX/XXXX 30-day late status which means removing 12 out of 13 late statuses for MoneyLion, removing any derogatory notes regarding the {$18.00}, removing any mention of collections which was never true, and setting the status to closed/paid in full on XX/XX/XXXX or changing the status of all months except XX/XX/XXXX to Good/current.  This testimony will be forwarded to the FTC since it is unacceptable for a lenders actions to negatively impact a debtors credit when the debtor paid off the loan using the pay-off amount provided by the lender only for the lender to say the debt is paid in full while silently keep the debtor in debt for {$18.00} with no means by which to correct the missing amount for over a year.

Company response to consumer: Closed with monetary relief