Consumer complaint received 2025-11-07 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Problem with a company's investigation into an existing problem — Their investigation did not fix an error on your report
Company: MoneyLion Inc.
State: FL

Complaint narrative:
I am filing this complaint against MoneyLion Inc. regarding XXXX XXXX XXXX XXXX account XXXX. These are not traditional unsecured loans, but credit builder products that are advertised and contractually structured as secured, with funds placed in a XXXX XXXX Account in my name until full repayment. I am a veteran who, during the COVID-19 pandemic, was hospitalized for several months. This caused me to fall behind on payments through no fault of my own. 

The key issues are : My signed loan agreements and the XXXX Account XXXX XXXX clearly state that a portion of my Credit Builder account proceeds would be placed in a XXXX XXXX XXXX disbursed directly as cash, but held as collateral, and only accessible after the loan was paid in full. The contract says that in case of default, MoneyLion may liquidate the reserve to pay off the obligation. 
Despite these terms, MoneyLion now claims no funds were ever placed in a reserve account and insists the full loan was paid out as cashcontradicting both the written contract and statements I received from MoneyLion representatives. When I repeatedly asked where the funds were deposited, to what account, and on what date, they refused to answer or provide any documentation. 
This is not a standard personal loan, but a credit builder product, and MoneyLions reporting as an unsecured charged-off debt does not match the products structure or my understanding at origination. 
When I fell behind during my COVID-19 hospitalization, I notified MoneyLion, asked for assistance, and received no support or accommodation. 
Despite my repeated outreach and willingness to pay in full to resolve my account and repair my credit, MoneyLion escalated the account from Past Due to In Collection without warningwhile I was actively trying to resolve it.

MoneyLion refuses to provide a full payment and accounting ledger, will not explain what happened to the reserve funds, and continues to report two negative tradelines for the same type of product, making it impossible for me to qualify for a home loan. 
I have asked about Military Lending Act ( MLA ) compliance and disclosures, since I am a XXXX XXXX. I have not received any proof of MLA screening or the required disclosures, even though the contract contains arbitration and high-interest clauses. 

If MoneyLion claims that no XXXX XXXX Account was ever established and the full loan amount was disbursed as a cash loan, this would directly contradict both the terms of the signed XXXX XXXX XXXX XXXX XXXX and the Security Account Control Agreement. 
This would represent a material breach of contract and a misrepresentation of the nature of the product I agreed to. 
The agreement clearly specified that funds would be withheld in a XXXX XXXX Account as collateral, not provided in full as a traditional loan. 
If MoneyLion can not produce documentation showing the creation and use of the reserve account as described, I believe the contract is void and their reporting and collection activity is not valid. 
I am requesting regulatory review of MoneyLions advertising, loan origination, and fulfillment practices regarding this product, as it appears to be unfair and deceptive to market and contract for a credit builder loan but deliver a fundamentally different product. 

I am requesting the CFPBs assistance to ensure fair treatment, accurate reporting, and a full accounting. I remain willing to resolve the balance if MoneyLion can demonstrate contract compliance, but I am not willing to accept inaccurate or deceptive practices that are harming my credit and financial wellbeing. 

Additionally, when I attempted to resolve my account, MoneyLion referred me to a third-party debt settlement company ( XXXX XXXX XXXX XXXX XXXX This is highly inappropriate for a credit builder product that was contractually secured by a reserve account, not an unsecured personal loan. Referring me to a debt relief service for a product marketed to help build credit is misleading and does not align with the stated intent or structure of the XXXX XXXX XXXX program.

Company public response: Company believes the complaint provided an opportunity to answer consumer's questions
Company response to consumer: Closed with explanation