As a statewide economic justice organization based in Baltimore City, we applaud Mayor Scott’s lawsuit against payday advance company MoneyLion for trapping hard-working people across our city in a vicious cycle of debt.

As wages remain stagnant, the cost of living soars, and families struggle to make ends meet, some have resorted to using apps that promise help. Instead, many city residents find themselves paying more than 330% to have borrowed against their own hard-earned paycheck.

MoneyLion and similar companies have emerged to provide paycheck advances prior to payday. However these products are simply dressed up versions of payday loans, which have been banned in Maryland for more than 20 years.

In June and July 2024, Economic Action surveyed our members on a number of economic and consumer issues. Of the 430 survey respondents, nearly 50% used one or more payday advance products while 89% of those who used these apps paid for quick access to the cash.

We urge Governor Moore to pass legislation to protect consumers from these types of high-cost, predatory loans.