Montgomery County filed two lawsuits against digital cash-advance companies MoneyLion and Dave on Monday, Sept. 28, marking the first consumer protection actions against digital payday lenders in Pennsylvania.
District Attorney Kevin Steele and the Montgomery County Board of Commissioners announced the suits alongside a new joint consumer protection partnership between the DA's office and the county solicitor's office. The lawsuits allege that both companies charged fees and "tips" on short-term cash advances that functioned as illegal high-interest loans, with costs that exceeded the state's legal lending limits by hundreds of percentage points, Main Line Media News reported. The law firm Berger Montague represents the DA's office in both cases.
Lower Merion residents are among the Montgomery County consumers the partnership aims to protect. More than a million Pennsylvanians have used these cash-advance apps, according to Vice Chairman Neil Makhija, and officials hope the lawsuits will reveal how many county residents were affected.
MoneyLion and Dave obtain customers' banking information and offer small advances on their next paycheck. Fees and other charges are then automatically withdrawn from that paycheck, according to the DA's office. Traditional payday lending has long been illegal in Pennsylvania because of the debt cycles it creates for people living paycheck to paycheck.
"People are struggling to cover everyday needs," Makhija told the Philadelphia Inquirer. "Some companies see that and they see an opportunity to make a profit."
Makhija called the DA-Commissioners partnership "the first long-term partnership on consumer protection that we're aware of." He said the county can bypass the arbitration clauses consumers agree to when signing up for the apps because the DA files suit on behalf of the Commonwealth.
The county budgeted for the effort in its 2026 DA's office allocation. Makhija said the cases would pay for themselves through recovered funds and would not be a cost burden on taxpayers.
The partnership extends beyond payday lending. The county is also pursuing litigation against Vivid Seats over hidden ticket fees, actions on insulin pricing, and a federal lawsuit filed in August against social media companies including Google, Meta, Snap and TikTok over youth mental health, according to the county's announcement. All three commissioners backed the effort.
Spokespeople for MoneyLion and Dave did not return requests for comment, the Inquirer reported. No hearing dates for either case have been announced.
Montgomery County residents can report consumer complaints by emailing [email protected].
