MoneyLion entered into a partnership with Column Tax, a personal income tax software company, to offer customers with RoarMoney Banking accounts access to free tax filing services, the company announced last week.
Those who are not enrolled with RoarMoney can sign up for the account and gain access to the product, MoneyLion said in an email.
Eligible customers can file taxes directly, with most applications taking less than 15 minutes, through the MoneyLion app, the fintech said in a statement. Those who file their tax returns through MoneyLion’s app gain access to the returns two days earlier than if they used another service provider, the fintech said.
“MoneyLion’s strategic partnership with Column Tax allows us to continue to democratize access to financial services and education to all Americans,” Tim Hong, MoneyLion’s chief product officer, said in a statement. “Our missions are closely aligned, as they seek to educate and enable every American to have seamless access to their tax refunds so they can save, invest, pay off debt and meet their financial goals throughout the year.”
MoneyLion aims to help people take control of their finances through quality services and education, Hong added.
However, the neobank’s lending activities came under scrutiny in September, when the Consumer Financial Protection Bureau sued the company, alleging it violated the Military Lending Act.
The bureau alleged MoneyLion charged more than the legally allowable 36% rate cap on loans to service members through combined stated interest rates and membership fees. The agency also said the fintech required its customers to join a program at a fee to get access to an installment loan product with a low annual percentage rate. MoneyLion failed to allow members to cancel their memberships until their loans were paid, the CFPB said.
MoneyLion disagreed with the bureau’s characterization.
“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,” the company said, adding that its membership offering represents a small subset of the company’s business.
MoneyLion’s partnership with Column Tax comes close on the heels of the October launch of MoneyLion University, a financial literacy initiative that aims to bridge the gaps in money education across the country.
NFL linebacker Brandon Copeland, a University of Pennsylvania lecturer, partnered with MoneyLion to develop a curriculum based on money education and skills required in the real world for its consumers.
The neobank teamed up with Column Tax to “give people a jump on their tax filing by providing accurate and efficient services,” Gavin Nachbar, co-founder and CEO of Column Tax, said in a statement.
MoneyLion said it expects to see a significant number of customers use the Column Tax service throughout the season. The deadline to file federal taxes is April 18.
“Both companies strive to bring best-in-class financial services and products to consumers to help make their lives easier,” Cynthia Kleinbaum, MoneyLion’s chief customer officer, told Banking Dive in an email. “We remain committed to improving the financial lives of our customers by providing them unique, personalized content and services that benefit their financial health long term.”
