- MoneyLion ( NYSE: ML ) stock is surging 25% in Friday morning, erasing some of the 29% plunge that occurred when the Consumer Financial Protection Bureau filed a suit Thursday against the lender , accusing it of overcharging service members and denying requests to cancel membership for a program for low APR financing.
- "We will vigorously defend against these false allegations to set the record straight as we continue to deliver innovative financial products that help our customers," a spokesperson said in an email to Seeking Alpha.
- The company pointed out that the CFPB's complaint only refers to one of its product offerings. "The claims made by the Bureau about our membership offering, a product that represents a small subset of MoneyLion's ( ML ) business, are without merit," the company said.
- In addition, the company said it has cooperated with the CFPB over the last three years regarding the membership offering. "Despite our cooperation, the Bureau has chosen the sensationalist route of prioritizing headlines instead of engaging in constructive dialogue," the spokesperson said.
- MoneyLion ( ML ) went public through a SPAC deal a little over a year ago. In the past year, its shares have dropped 85%.
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MoneyLion stock claws back losses as company defends against CFPB suit