That makes MoneyLion one of the “more expensive options in this market,” according to Center for Responsible Lending Senior Policy Counsel Andrew Kushner. Considering the products are geared toward cash-strapped people who need money now, Kushner said most users end up paying the fees. These apps create a “cycle of borrowing” as financially vulnerable users try to keep up with the “extremely high cost of the loan relative to the size,” according to Kushner. The Center for Responsible Lending found that users of these apps experienced a 56% increase in checking account overdrafts. Borrowers who use these “earned wage access" services withdrew 36 times a year, according to a 2021 California Department of Financial Protection report.
