FTC refunds USD 2.6 mln to FloatMe users for misleading practices
The Federal Trade Commission (FTC) is issuing refunds totaling $2.6 million to 449,344 consumers who were harmed by the deceptive and discriminatory lending practices of online cash advance provider FloatMe. FloatMe misled consumers by promising “free money” and failing to deliver on these promises. The company charged fees for expedited cash advances, made it difficult for users to cancel subscriptions, and discriminated against those receiving public assistance. Additionally, FloatMe made unsubstantiated claims about increasing cash advance limits through automated systems.
The FTC will send PayPal payments on September 23, 2024, to eligible FloatMe users, with notifications being sent via email by September 20. Recipients should claim their payments within 30 days. The FTC emphasizes that no payment or account information is required to receive a refund.
This action follows a settlement order where FloatMe agreed to change its business practices and pay $3 million. The FTC’s enforcement actions aim to protect consumers and ensure fair market practices, serving as a deterrent to other companies that may engage in similar deceptive practices.
About The Author
