The state of New York, led by Attorney General Letitia James, has initiated legal action against the financial service providers MoneyLion (ML, Financial) and DailyPay. This lawsuit alleges that the companies have engaged in offering illegal high-interest loans, exploiting thousands of consumers in New York.
The core accusation centers around these firms providing loans under the guise of different financial products, which effectively operate as payday loans. The interest rates associated with these loans purportedly reach as high as 750%, far exceeding legal limits and imposing significant financial burdens on borrowers.
This move is part of a broader effort by the state to address predatory lending practices and protect consumers from exorbitant interest rates that can lead to escalating financial difficulties. The outcome of this case could have significant ramifications for lending practices and consumer protection regulations in New York.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 5 analysts, the average target price for MoneyLion Inc (ML, Financial) is $83.28 with a high estimate of $105.00 and a low estimate of $39.42. The average target implies an downside of 1.91% from the current price of $84.91. More detailed estimate data can be found on the MoneyLion Inc (ML) Forecast page.
Based on the consensus recommendation from 6 brokerage firms, MoneyLion Inc's (ML, Financial) average brokerage recommendation is currently 2.7, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for MoneyLion Inc (ML, Financial) in one year is $58.74, suggesting a downside of 30.82% from the current price of $84.91. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the MoneyLion Inc (ML) Summary page.
